Manulife Viet Nam heats up the market

The insurance market is heating up with Manulife Viet Nam last week launching a competitive new product. Maxx Phuc Loc Thinh Vuong -a regular premium unit-linked product combining protection benefit and financial investment has just received the Ministry of Finance's blessing.

Manulife Viet Nam became the second insurer in Viet Nam to offer an insurance and investment-linked product on the local market, following Prudential. State-run Bao Viet is still seeking permission to run such a product.

David Wong, Manulife Vietnam's CEO, said Maxx aimed to fulfil customers' life insurance protection and medium and long-term financial planning needs.

"It is especially designed for customers who need to save for their retirement or children's education, but at the same time need life insurance coverage to ensure financial protection for their family," he said.

Investment-link is an insurance policy combining basic life insurance protection with an investment vehicle. With Manulife's Maxx product, customers can invest in progressive, growth and balanced funds managed by Manulife Vietnam Fund Management.

Different from traditional life-insurance products where customers' premiums are invested in 'safe' channels such as treasury bonds, investment-link sees premiums funnelled into more profitable channels such as the stock market or real estate.

However, all risks are borne by policy holders.

"Many have asked whether it is good time to invest in the stock market. My answer is that I believe in the Vietnam's long-term growth story. The index is at 400 and may even go down to 200 to 300 in the next six months, but given 10 years, it can easily go back to 1,000 to 2,000 points," Wong said.

Phung Dac Loc, Association of Vietnamese Insurers' general secretary, said investment-linked insurance had great potential to be a leading life insurance product. (Dau Tu)