Improving the insurance for singles service at bao khang hung thinh co ltd, agent of dai ichi life insurance company

THUONGMAI UNIVERSITY INSTITUTE OF INTERNATIONAL COOPERATION WORK PLACEMENT REPORT Company: DAI-ICHI LIFE – BAO KHANG HUNG THINH Co.Ltd Project title: : Improving the "Insurance for singles" service at Bao Khang Hung Thinh Co.Ltd, agent of Dai-ichi life insurance company Name of student: Nguyen Quynh Trang University year: 2019 - 2022 Tutor at TMU: Nguyen Ngoc Khanh Linh Tutor at USTV: Marie-Josée Cambreling Tutor at (Company): Msr Nguyen Thi Phuong Hanoi - 2022 TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES Figure 1: Structure of Dai-ichi Figure 2: The customer data in BKHT branch Figure 3: Facebook users in Viet Nam 2021 (Cre: NapoleonCat.com) Figure 4: Insurance Groups in Viet Nam Figure5:Consultant Daiichi's Facebook Account Figure 7: Market share of Life Insurance Industries (Viet Nam) Figure 8: Some pictures of the Internship ACKNOWLEDGMENTS First of all, I would like to express my most sincere thanks to the teachers in the International Training Department of Thuong Mai University and Toulon University who have taught and conveyed valuable knowledge to me during my study and training at school Besides, I would like to thank Mrs Nguyen Ngoc Khanh Linh for enthusiastically guiding me so that I can complete this graduation thesis I would like to express my sincere thanks to Mr.Nguyen Ngoc Long and Msr Nguyen Thi Phuong for creating favorable conditions for me to intern, learn about my work, help me gain more knowledge about insurance, and gain more knowledge about my career as well as experience for my work in the future Due to limited knowledge and limited time of internship, I cannot avoid shortcomings, I hope to receive comments and criticisms from teachers It will be valuable knowledge to help me improve my skills later INTRODUCTION Firstly, in the general development of the Vietnam economy, the banking and insurance sector in general and the life insurance sector, in particular, have made significant contributions Given the superior nature of life insurance, it helped stabilize the socioeconomic landscape through basic work and insurance payments, addressing thousands of jobs for workers In Life insurance enterprises, Dai-Ichi Life Insurance Vietnam gets into the Vietnamese market quite late (as of 2007) but already has a certain position in the Life insurance market in Vietnam However, Dai-ichi Life Vietnam still faces challenges in maintaining and developing its position in the Vietnamese life insurance market as the economy of Vietnam is integrating into the world economy One question I've asked is celibacy moving in? In Viet Nam, the proportion of unmarried people is also growing rapidly, increasing from 6.23 percent in 2004 to 10.1 percent in 2019, according to General Statistics Office "Celibacy has become a new trend representing economic and spiritual independence of some young people", Master Vo Minh Thanh, lecturer in Psychology at Ho Chi Minh City University of Pedagogy shared (Cre: vnexpress.net) may find singleness a choice among many today, especially those living in big cities Happiness celibacy is a choice that leads toward comfortable quality of life, and happiness in other aspects and values, in addition to the enjoyment of marital relations Getting married late or being single is a choice for many young people, a lifestyle that focuses on pursuing their own interests, developing their own, and building time for their parents and friends Apparently, insurance is a solution that optimizes all three of these people's expectations: maintaining health, family protection, and safe investment That is one reason for the potential of insurance development in the customer (single person) segment As a student majoring in Finance-Banking-Insurance, I want to dig deeper into the field of insurance for singles in one of the biggest insurance companies in Vietnam – Daiichi life insurance company because I have found this product very interesting Besides, after working at Bao Khang Hung Thinh Co.Ltd, I have found that the customer demand for the insurance for singles service is growing but the service development still cannot meet that high demand For all of those reasons, I have chosen the topic: “Improving the "Insurance for singles" service at Bao Khang Hung Thinh Co.Ltd, agent of Dai-ichi life insurance company” for my graduation report I PART 1: OVERVIEW OF DAI-ICHI MUTUAL LIFE INSURANCE COMPANY (IN VIETNAM), BAO KHANG HUNG THINH Co LTD – AGENT OF DAIICHI LIFE INSURANCE COMPANY Dai-ichi Mutual Life Insurance Company (Vietnam): • Name: Dai-ichi Mutual Life Insurance Company (in Vietnam) (Dai-ichi Life Vietnam • • for short) Slogan: #GẮN_BÓ_DÀI_LÂU ( ~ long-term commitment) Headquarters: Dai-ichi Life building, no.149/151 Nguyen Van Troi street, Ward 11, Phu Nhuan District, Ho Chi Minh city • Legal status: Active (has the tax registration certificate) • Number of employees: 260 offices, a team of 1,800 employees, and 113,000 professional financial advisers; Along with prestigious partners Sacombank, LienVietPostBank, HDBank, SHB, Bac A Bank, VNPost, Mai Linh Group with • distribution networks over 2,400 trading posts across the country Activity : The birth of Dai-ichi Vietnam is an important milestone in the history of 105 years of operation of Dai-ichi Life Japan and it is also a notable event in the history of the transfer, and merger of companies in the field of financial services in Vietnam - Dai-ichi Vietnam has missions: Contribute to the development of Vietnam society through the provision of products and services for life insurance the best and most advanced Provide the highest satisfaction to customers Provide satisfaction for staff and Financial Advisors All the basic products of Dai-ichi Vietnam have the following common characteristics: - Protection against the risk of financial - Long-term savings - Guarantee insurance benefits premium high-competitive - Refundable value and maturity benefit - Flexible insurance (minimum years) - Offer to scale reduction contract • Company Structure: General Director Bussiness organize & IT Department Sale Director Area Sales (3) Brand Managing Director Agencies Supporter Sales Manager Sales Group Leader Financial Adviser Figure 1: Structure of Dai-ichi - General director (Mr Takashi Fujii): The leader of Dai-ichi Vietnam Brand director: Director of Brand Development Bussiness organize department: Include office staffs like receptionist, accountancy, - treasurers, secretary, responsible for given objectives and helping other departments IT department: Responsible for information technology system Sales director: Direct the marketing and sale programs, Report directly to the general director, and have - responsibility for Sale Results Area sale directors: people corresponding to Northern, Southern, and Middle of Vietnam: Direct the sale and marketing programs in their area, Report Sale results for the sales director Agency support: Do supporting activities for agencies, organize - competition in the company Sale group leader Financial Adviser: Each Financial Advisor is an agency, that directly contacts the customer and provides the best finance solutions for them “Dai-ichi Life Vietnam has pursued the reinforcement of its core individual insurance agents channel through extensive training and expanding the sales network of the individual insurance agents In addition, Dai-ichi Life Vietnam has expanded into alternative channels, strengthened cooperation with partners, and enhanced its product lineup Since commencing its business in 2007, Dai-ichi Life Vietnam has steadily expanded its market share, and now it is among one of the top five major life insurers Going forward, Dai-ichi Life Vietnam will continue to improve customers’ experiential values and support our sales structure largely through the promotion of various digital platforms, aiming for sustainable growth by expanding sales and improving operational quality.” (The Annual Report of Dai-ichi Life, 2021) Dai-ichi Life – Bao Khang Hung Thinh Co.Ltd: • Location: Floor 13th, Intracom building, no 33 Cau Dien Street, Phuc Dien ward, Bac Tu Lien district, Ha Noi • Number of employees: more than 80 employees • Date of creation: 04/08/2021 • Main occupation: Agency and insurance brokerage activities Introduction to my internship: • The reason I chose this topic for this internship: From research figures, the potential for developing insurance market share for Daiichi in single customers is overwhelming Daiichi needs to take advantage of the opportunity quickly and effectively exploit its strengths to make the mark early and lasting Besides, this essay will aim to investigate the attributes of insurance products and the quality of services that affect purchasing power and single customer loyalty Since then, the essay suggests more effective and more realistic approaches for single customers 10 - High school enrollment in the United States Priority access to RMIT University Vietnam Fully Funeral Benefits: Immediate financial support for the family of the insured who goes through a difficult period; Giving customers complete confidence in their responsibility to their family in the face of unexpected situations; To take immediate advantage without waiting for time; The client doesn't have to pay any extra incurred fees - And so on… 2.3.4 SWOT Analysis: • Strength: Strong financial capacity: Large capital sources - not only one of the key resources for achieving good business performance, but also one in which insurance enterprises show a commitment to the long-term insurance business in Vietnam To demonstrate strong financial potential as well as a commitment to a "long-term commitment" to Vietnamese customers On 18 January 2017, on the 10th anniversary of her establishment, Dai-ichi Life Vietnam was granted permission by the Finance Ministry to raise capital to the US $117 million, which officially became one of the market's largest Life insurance companies  Thus, capital has become a solid foundation for customers who invest in insurance there Uniquely diverse product: With a keen interest and a desire to help customers realize their dreams, and great plans for themselves and their loved ones, Dai-ichi Life Vietnam with a wide range of products for Life's needs and goals for the future will help them plan the financial solutions that will give them the most comprehensive protection, safe investment, and suitability for you and your loved ones Currently, the company owns six major insurance products and eleven additional products to meet all customers and age groups' needs  Apart from this, the company has these products in stages of life As I previously stated, the single process inspired me to perform this report More than being single, Daiichi is willing to be with customers even though they are at least starting the period of their lives (getting married, having young children, growing up, and retiring) 33 Customers can be flexible about the insurance packages if they decide to move on to a - new phase of their life The big distribution channel system Dai-ichi Life Vietnam prides itself as the third in the network of distribution channels that serve customers with a system of nearly 200 offices and general agents across the country The company will continue its strategy of expanding this distribution channel to bring life insurance products and services to the Vietnamese people so that the company can reach rural, remote, and remote areas throughout Vietnam An effort to expand the company's network is testimony to a commitment to improve the quality of service to merit customer trust and support over the past decade  This also addresses the concerns of the young yet separated family group They worry about not being with their parents, and not easily using remote family insurance services Instead, Daiichi tried to reduce the distance to make it more convenient for customers Plentiful, professional human resources Identifying the human factor at the heart of success, with decades of active experience in the Life insurance sector in Vietnam, the permanent question to Vietnam's Dai-ichi Life leadership is how to build and maintain a quality financial advisory team to become close friends with customers Because of that, the company is always training a team of professional financial and staff to provide customer satisfaction  Daiichi is highly regarded for the advice team: hard work, friendly, and enthusiasm In order to face a young group of clients with a broad knowledge level and requirements, the consultants made a great impression and tried to improve each day • Weakness: - Daiichi entered the Vietnam life insurance market slower than its competitors Compared to rival companies in the Top five Vietnamese market-leading insurers, Dai-ichi Life has the latest time to participate in the Vietnamese insurance mayor  Being a mayor is a bit late, causing a lot of disadvantages for the company, in the first place its market share is lower than that of rivals, in the second, customers are familiar with long-standing brands, and thirdly, it will be difficult for the company to find and expand its mayor, and eventually, it needs to formulate an effective business strategy to compete with rival firms 34 - As well as customer search strategies through phone calls, social networking, email, etc., have not been successful strongly yet  The use of social networking is essential, especially concerning high technology • - among young people today Opportunities: Following accession and implementation of WTO commitments, Viet Nam's economy has had a high opportunity for growth because Vietnam's goods will take on a wider market, and member countries' goods will enter the Vietnamese market This sets the stage for the growth of industries and sectors such as transportation and import and export However, the effects of the recent global economic crisis have also had a significant impact on the Vietnamese economy causing Vietnam's growth to be slower and lower than in the previous year, with high inflation and so on But with the government's appropriate solutions to help the domestic economy overcome the crisis, coupled with open policy, political stability and other favorable factors made Vietnam an attractive market for foreign and domestic investors, this could lead to the development of the insurance industry  High growth economies require capital needs and insurance needs to meet, thus making the basis for life insurance, banking credit, and developed securities Capital accumulated from insurance industry reserves has many high investment opportunities - and encourages the development of insurance The law is increasingly complete and compatible In particular, Circular 125 regulations, insurance enterprises are not entitled to borrow for direct investment (or investment trusts) in securities and real estate and contribute capital to other enterprises Insurance enterprises are not allowed to make the investment back or down again for shareholders who contribute capital or related persons as stipulated in the Enterprise Law, except for deposits at shareholders which are credit institutions Legislation is increasingly refined and compatible to protect the legitimate rights and interests of the business's consumers and is emerging to include insurance needs such as occupational liability insurance, lawyers, design consultancy, etc.; Property insurance; Financial insurance; Product liability insurance of production - and business organizations; Civil liability insurance of business owners Increasing per capita income After accession to WTO, the Vietnamese economy has an opportunity to promote trade with its member countries, thus helping the Vietnamese economy 35 integrate and grow with the regional and world economies As the economy develops and integrates, the more modern society is improved and the more people's lives are raised to higher levels of per capita income, thus allowing for more attention and - resources to participate in insurance products to make their lives safer Increasing awareness of the needs and effects of insurance Through the advocacy of the insurance sector, through the custom of purchasing insurance by foreign investors, or as the economy develops, people's awareness is enhanced, apart from improving quality of life through consumption and enjoyment, the more accurate and better understood the role and effect of the insurance industry in life and in production and business It is this that makes the need to participate in insurance for everyone in society enormous State subsidies in some areas will be declining The socialization of physical, health and educational, and cultural activities stimulated the need for insurance coverage such as increased tuition fees and hospital fees, and the construction of ceiling levels further increased the need for life insurance Non-life health care insurance, human accidents As state subsidies decrease, natural anxiety, and accidents, lead to the need to think about insurance • Threats: - An increasing number of licensed insurance enterprises have been operating Domestic and foreign organizations and individuals, which meet the conditions prescribed by the Law, have the right to apply for permission to establish insurance enterprises, including foreign insurance enterprises by WTO commitments The advent or entry of many insurance enterprises into the Insurance market in Vietnam will make the already intense competition The bleeding of key human resources grey to new insurance enterprises or foreign insurers will make the operation of old - insurance enterprises difficult The distribution channel of insurance products has exposed many weaknesses Currently, Vietnamese life insurance companies mainly still exploit insurance from insurance agents Some enterprises have accelerated and developed a channel to sell insurance products through commercial banks or to increase premium revenue through an increase of commission for insurance agents and insurance brokers, with little or no emphasis on developing and professionally organized such teams as well as a greater interest in facilitating (financial, vehicle, and technical) exploitation through this distribution channel This has led to competing brokerage firms, insurance agents, 36 unprofessional working, voluntary addition of conditions, insurance terms, and so on These are at a disadvantage to insurance businesses and the insurance market when - the risk is higher than the fees they receive Settlement of compensation has many problems Simplification of compensation records and procedures to relieve distress to customers has not been markedly improved There is much more to the problem of collecting records and documents to settle claims to customers, especially when such documents and documents must be obtained from authorities such as police and hospitals In addition, the assessment of loss compensation by insurance firms has not been particularly effective In addition, there have been no appropriate sanctions against insurance firms for delaying claims, making compensation inadequacies Severe competition is mainly done by reducing premiums, with little emphasis on customer service Premiums on the Vietnamese insurance market are now primarily shaped by competing for ways to lower technical fees, with no regard for coverage or risk One of the root causes is the revenue-based payroll and cost outsourcing regimes that not focus on possible compensation (the insurance enterprise's commitment to its customers) This has resulted in not only competing for insurance firms but also competition between the branches within the same insurance enterprise Therefore, the increased interest in customer service provision has also been limited 2.4 Business cases: • Case No.1: ( Succeed – customer buys insurance for member family) The information of the customer: participate in day insurance: 16/04/2022 37 Full Name Age Gender Insured person Nguyen Viet Hung 48 Male Insurance buyer Nguyen Thi Cam Tu 25 Female Additional insured people Vu Thi Kim Oanh 45 Female Insurance Participation An Tam Hung Thinh Toan Dien Health Care Insurance Health Care Insurance Table 3: Information of customer no.1 The information of products that customers participate in: • An Tam Hung Thinh Toan Dien with time to join is 25 years - Insurance fees: 20 million VND per year - Product benefits: Protection benefits: help customers reduce economic pressure when being killed by accident or cancer Investment benefits: enjoy an interest rate of 5-7% per year • Health Care Insurance: annual renewal - Insurance fees: 1.962.000 per year is a premium health care package - Product benefits: Customers are paid for inpatient, outpatient, and dental examination  Negotiations and result: Succeed 38 Name Insured person Additional Insured person Insurance Buyer (single) Age Physical Test Qualified Career Finance Nguyen 48 Teacher From Viet (Group 1) 8M/month Hung Vu Thi 45 Qualified Teacher From Kim (Group 1) 8M/month Oanh Nguyen 25 Official 12M/month Thi Cam staff Tu (auditor) Table 4: Conditions for Insurance participation Qualified Qualified Qualified The special rights of this package for insurance buyer: - Draw or triple the cash response from the contractual account value whenever from - the second five contracts to meet the short-term spending needs Options increase or decrease the amount of flexible insurance, according to financial - capacity and the need for protection in each stage of life Options for premiums are flexible according to the financial situation at each time Additional inputs are obtained at any given time through premium payments It is easy to require an increase in the amount of insurance without the need to reappraise the health of significant events in life such as a pregnancy marriage or a starting Elementary school/ Junior high school/ High school/ college • Case No.2: The information of the customer: participate in day insurance: 25/03/2022 39 Full Name Age Gender Status Insurance Buyer Pham Thi Hoa 34 Female Single Insurance person Pham Thi Hoa 34 Female Single Product Participation An Thinh Dau Tu Health Care Insurance An Thinh Dau Tu Health Care Insurance Table 5: Information of customer no.2 - Negotiations and results: The client is ineligible for health insurance due to disease detection during the medical examination Specifically, due to the customer's family having inherited diabetes, the test showed blood sugar levels were higher than 125mg/dL and was diagnosed with Type diabetes With Daiichi, having type diabetes does not take away the right to a customer’s life insurance The more effective a customer controls diabetes, the more it takes attention If the customer can tell life insurance companies that they have low blood sugar and they are being cared for by their doctors, they will enjoy lower premiums And if they can keep their blood sugar levels optimal just by taking their - diet and changing their lifestyle, it's even better Also, according to Daiichi, since type diabetes reacts more quickly to lifestyle changes, it is considered less risky than Type diabetes And the older a customer becomes diagnosed with type diabetes, the less likely a customer is to get life - insurance that is less than average But the client is credited with a history of heart disease Although Daiichi has advocated the idea of insurance for diabetics, they are still not too interested in insurance for people with diabetes and other serious risk factors, especially heart disease, high blood pressure, and stroke Diabetes + heart disease = a low risk of life insurance because this is a serious medical condition, and Daiichi does not accept this condition at all 40  Failed Figure 8: Some pictures of the Internship III PART 3: INTERNSHIP ASSESSMENT 3.1 - The difficulties encountered I have difficulties in dealing with overwhelming workloads and getting used to a new and professional working environment 41 - Lack of cost and time: I only had around three months to intern at the branch, but there were a lot of things I needed to learn and practice Aside from that, I had to spend time reading materials, learning new skills, and gaining work experience Furthermore, as you are aware, I am a student with no source of income, therefore I requested additional funds from my parents to cover gift fees, transportation costs, and - other expenses In comparison to senior colleges, my understanding of insurance was still rather limited When introducing products to customers, there have been certain product 3.2 - concept errors Internship gained I learned how to adjust to new working conditions Unlike in college, I adhered to my office's schedule, allowing me to become acquainted with my coworkers and company culture Furthermore, these experiences will help me gain confidence soon when - working in the insurance industry At Dai-ichi, I have the opportunity to attend a basic insurance knowledge course, which allowed me to test my English skills when phoning overseas consumers This - will be extremely beneficial to me in my current position and in the future Working in a professional setting is enjoyable for me It assists me in improving my abilities In terms of communication, I was able to interact effectively with both customers and coworkers This setting also aided me in making new friends who have been quite supportive of me in my job and personal life Career plan After my internship, I understand my current personal skills I also realized my 3.3 weaknesses that just appear on the job daily Therefore, I had specific directions for - my career plan and shaped several intentions for the upcoming years Short-term goals (3-6 months): First of all, I would like to have insight into insurance knowledge and insurance products in particular In my real-world working environment, I have access to theories in my learning and direct research And since then, I have found ways to study, learn, and practice to gain knowledge more effectively In addition, having advanced knowledge has helped me to control my abilities and to choose appropriate positions in the future In particular, I could offer effective and helpful advice to my customers 42 Next, I want to finish my graduation paper with good grades It is a key element in the CV for easier recruitment into future companies At the same time, opening up desirable job opportunities Last but not least, after studying as an intern for Dai-ichi Life I realized that this was the ideal working environment for a new student who came out of school because: of a dynamic working environment, a co-worker, and a manager that was extremely friendly and equal, levels of salary suitable to competence and position, a good welfare system, more opportunities to learn and exchange knowledge After - graduation, my goal was to become Dai-ichi Life's office staff counselor Long-term goals: For long-term goals, I still wanted to continue to follow my chosen career Thanks to the loving support and teaching of my lecturers, the professors of the two TM universities, and the University of Toulon, I gained a strong foundation in a Financial-Banking-Insurance which helped me complete my training and go beyond in the future At the same time, I found out about my favorite career and wanted to pursue it even further So I decided to pursue a master's degree in insurance to broaden my own as well as other necessary skills I chose master's studies for two main reasons: satisfying my interest in this field and my dream was to work towards a senior management position in a multinational insurance company… 43 CONCLUSION During the last three months of my internship at Dai-ichi Life Insurance Company, I have gained a wealth of professional experience and practical understanding of life insurance plans and the insurance industry working environment, particularly health care insurance It is a fantastic opportunity for me to have a better understanding of insurance services, insurance buying processes, and related products Furthermore, owing to the counsel and guidance of Financial Counselor Nguyen Thi Phuong and the rest of the personnel in the room, I've learned a lot of good lessons and have been able to expand my practical knowledge I've learned how to work independently, how to form and maintain interpersonal relationships, and how to be more confident rather than timid and hesitant And both my soft skills and my knowledge have visibly increased Thus, I always remember everything I learned and was taught at Dai-ichi Life-BKHT Branch since it plays a vital role in my future profession, and I realize that interning at Dai-ichi Life-BKHT Branch was the perfect decision Finally, I believe that Dai-ichi Life-BKHT Branch will continue to flourish and thrive in the future 44 LIST OF REFERENCES https://www.dai-ichi-life.com.vn/en-us https://daiichi.edu.vn/gioi-thieu https://dai-ichi-life.com.vn/vi-VN/thong-tin-lai-suat/370 https://www.baovietnhantho.com.vn/#gref https://www.manulife.com.vn/ https://www.prudential.com.vn/vi/ https://www.dai-ichi-lifehd.com/en/investor/library/annual_report/index.html https://www.statista.com/topics/6228/insurance-invietnam/#topicHeader wrapper 45 INTERN ASSESSMENT FORM 46 ... chosen the topic: ? ?Improving the "Insurance for singles" service at Bao Khang Hung Thinh Co.Ltd, agent of Dai-ichi life insurance company? ?? for my graduation report I PART 1: OVERVIEW OF DAI-ICHI. .. MUTUAL LIFE INSURANCE COMPANY (IN VIETNAM), BAO KHANG HUNG THINH Co LTD – AGENT OF DAIICHI LIFE INSURANCE COMPANY Dai-ichi Mutual Life Insurance Company (Vietnam): • Name: Dai-ichi Mutual Life Insurance. .. choose one of two rights: one is the greater value between the increased premiums and the value of the contract account at the time of the death The second is the total of the increased insurance