Human resource quality of pvi insurance corporation

NATIONAL ECONOMIC UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM -o0o BACHELOR’S THESIS Major: Business Management HUMAN RESOURCE QUALITY OF PVI INSURANCE CORPORATION Student : Le Yen Chi Student’s code : CQ530436 Class : Business Aministration Intake : 53 Instructor : A Luong Thu Ha HA NOI, 05/2015 CONTENT INTRODUCTION .1 CHAPTER 1: INTRODUCTION OF PVI INSURANCE CORPORATION3 1.1 Overview of PVI Insurance Corporation .3 1.1.1 Basic information: 1.1.2 The formation and development of PVI Insurance Corporation 1.2 The organizational structure and responsibilities of the departments 1.2.1 The organizational structure of PVI Insurance Corporation .7 1.2.2 The mission of the departments within the company 1.3 Characteristics of the main business 12 1.3.1 Characteristics of services offered .12 1.3.2 Characteristics of market 13 1.3.2 Characteristics of insurance customers 15 1.4 Business performance in the period 2010 - 2014 .17 1.4.1 Main results 17 1.4.2 General assessment of the production - the company's business period 2010 - 2014 .18 CHAPTER HUMAN RESOURCE QUALITY OF PVI INSURANCE CORPORATION 21 2.1 Human resource of PVI Insurance Corporation 21 2.1.1 Human resource by educational levels .23 2.1.2 Human resource by English levels 25 2.1.3 Human resource by computer skills 25 2.1.4 Analysis of ethical and professional behavior 26 2.2 2.2.1 Factors effecting human resource quality of PVI Insurance Corporation27 Internal factors 27 2.2.2 External factors 37 2.3 Human resource quality of PVI Insurance Corporation 39 2.4 General assessment of human resource quality of PVI Insurance Corporation 40 2.3.1 Advantages 40 2.3.2 Disadvantages and reasons 41 CHAPTER ORIENTATION AND SOLUTIONS TO IMPROVE THE HUMAN RESOURCE QUALITY OF PVI INSURANCE CORPORATION 44 3.1 Business strategies and orientation for improving the human resource quality in PVI Insurance Corporation 44 3.1.1 The basis for determining the orientation 44 3.1.2 Strategic objectives for the insurance industry and PVI Insurance Corporation 45 3.1.3 Orientation to improve human resource quality 47 3.2 Some key measures aimed at improving the quality of human resources.48 3.2.1 Improved organizational structure 48 3.2.2 Completing the human resource planning .49 3.2.3 Development of standards for work performance 50 3.2.4 Improved recruitment activities 51 3.2.5 Human Resource Training 52 3.2.6 Remuneration and incentives 53 CONCLUSION .55 REFERENCES 56 LIST OF TABLES AND CHARTS TABLE : The consolidated business results of PVI in 2014 .18 TABLE : Comparing growth of premiums of leading insurers (2010 - 2014) 19 TABLE : Growth in market share of insurers (2010 -2014) 19 TABLE : Growth of equity and total assets of leading insurer (2010 - 2014) .20 TABLE : The number of employees of PVI from 2011 to 2014 21 TABLE - The structure of labor according to education level 24 TABLE : PVI’s ASSET in the period 2011 – 2013 .32 TABLE : PVI’s Revenue and Underwritting Reserve in the period 2009 -2013 .32 CHART 1: PVI Insurance Corporation Organization chart .7 CHART : Insurance Market Share from 2010 to 2014 14 CHART 3: Market share in some typical industrial insurance sectors in 2013 14 CHART : PVI Human Resources 2008 – 2013 22 CHART : PVI Working Age Year 2013 23 CHART : Manpower structure by age and language proficiency of workers .25 CHART : Manpower structure by age and level of computerization 25 CHART : Number of employees of PVI from 2008 to 2013 by sex 29 CHART : PVI's Revenue growth 2008 - 2013 .33 CHART : PVI's Financial Figures Growth 2010 - 2013 33 INTRODUCTION In Vietnam, after 20 years of opening itself for business, there have been dramatic socio-economic changes Vietnam's insurance market in general and the field of non-life insurance in particular are increasingly being extended with the broad participation of all economic sectors in the business of insurance services Up to now, there are 29 enterprises of non-life insurance, 14 life insurance firms, and 12 insurance brokerage firms in operation Many of the life insurance products and non-life insurance products relating to property, personal insurance, and liability insurance have been implemented to meet the diverse needs of participants and create a competitive choice for customers Along with the growth in the number of insurers as well as the scaling operation, the number of people working in the insurance industry also increased significantly, creating jobs for thousands of people PVI was established in 1996, and inherited power and trademarks of the National Oil and Gas Group Vietnam PVI is gradually developing and asserting its position in the insurance market in Hanoi as well as in the country Currently, PVI has approximately 1,500 employees and nearly 900 professional insurance agents In the future, to boost production and business activities, PVI is strengthening the sales team in quantity and quality, to create a team of professional insurance agents to expand markets, and strengthen the relationships with partners and customers The human beings, although highly qualified, but small in number, are often untrained and inexperienced in the intricacies of the new profession, and as such may not be able to meet the job requirements, leading to difficulties for the company External job searches are difficult due to the specific requirements of PVI So improving the quality of its human resources is urgently required for PVI in the future During the period of development of the Socialist-oriented market economy we became increasingly aware of the crucial role of human resources, especially human resources quality as an important factor for the development of economic growth of the country in general, as well as strong growth in PVI Insurance Corporation in particular And this is also why I chose the theme: "Improving the quality of human PVI Insurance Corporation" to study Besides the introduction, conclusion, and list of references, the essay structure includes chapters: Chapter 1: Introduction of PVI Insurance Corporation Chapter 2: Rationale and practice of improving human resources quality in insurance companies Chapter 3: Reality of human resources quality in PVI Insurance Company Chapter 4: Orientation and solutions to improve the human resources quality in PVI Insurance Coporation First and foremost I would like to offer my sincerest gratitude to my instructor, Mrs Luong Thu Ha, Lecturer, Faculty Of Business Management, National Economic University, who has supported me throughout my internship report I express my greatest thanks to Mr Phan Truong Thai, Deputy Director, Human Resources Division for his kind permission to allow me for two months internship at PVI Insurance Corporation I would like to thank the employees of the company Finally, I thank my parents for supporting me throughout all my studies at National Economic University, and for providing me a home in which to complete my internship report CHAPTER 1: INTRODUCTION OF PVI INSURANCE CORPORATION 1.1 Overview of PVI Insurance Corporation 1.1.1 Basic information: PVI Insurance is a unique insurance enterprise in Vietnam, which has experience of being in charge of providing successful insurance programs for oil and gas projects in combination with property and engineering insurance up to a value of one billion USD In the style of a professional Insurer, PVI Insurance was successful in providing the consultancies and risk management programs as well as insurance services for many major projects for domestic and international contractors Company's Name: Address: Phone: Fax: Website: PVI INSURANCE CORPORATION 168 Tran Thai Tong Street, Cau Giay District, Ha Noi (04) 3.7335588 (04) 3.7336284 http://www.pvi.com.vn 1.1.2 The formation and development of PVI Insurance Corporation PVI Insurance Corporation (PVI Insurance) is an affiliated company of PVI Holdings, which was formerly known as Petrovietnam Insurance Joint Stock Corporation (PVI) Established in 1996, PVI Holdings successfully restructured in 2011, which was actually a shining light in many ways Throughout strategic partnership with the Talanx Group, the 3rd largest insurance group in Germany, PVI Holdings has formally participated in global service provision Specifically, the Talanx Group acquired 32% stake and 11% stake of Oman Investment Fund (OIF) in PVI Holdings Moreover, Sun Life Canada also became the strategic partner with PVI Holdings to establish PVI Sun Life in Viet Nam Along with successful capital raising and strategic partners’ selection, PVI Holdings has undergone a comprehensive restructuring The new corporate structure of PVI Holdings consists of three subsidiaries: PVI Insurance Corporation, PVI Re-insurance Company and PVI Sun Life For each, PVI Insurance has inherited all rights, obligations and responsibilities in non-life insurance of PVI Insurance such as finance, experience, clients, branches, the world’s leading underwriters and reinsurance brokers, etc PVI Insurance is currently a public company with its major shares owned by Petrovietnam Oil and Gas Group In 2008, Standard & Poor's, the world’s most prestigious credit rating organization, ranked PVI Insurance among the top 10 stocks with the highest level of liquidity in Vietnam With an extensive sales network that comprises 26 member companies and over 150 independent sales offices stretching nationwide and operating in various areas of insurance, reinsurance, investment and other related businesses, PVI Insurance has more than 1,500 employees who are positively active, enthusiastic and professionally trained and always aim to provide the best services to customers Since 2002, PVI Insurance has been granted Management System Quality Certificate ISO 9001:2008 by Vietnam Certification Center (Quacert) and Det Norske Verita Organization (DNV) With the motto “Loyalty and Dedication”, PVI Insurance's insurance services have always been highly appreciated by the customers, and valued for their good quality, high security and competitive premiums PVI Insurance, as a professional insurer, has always been dedicatedly assisting clients with consultation, risk management and loss prevention and limitation So far, the company has been successful in arranging numerous insurance programs for the property and construction of Petroleum Industry which are worth billions of dollars, such as Nghi Son Refinery and Petrochemical Complex Projects, Formosa Integrated Steel and Port Complex, Dung Quat Oil Refinery Plant, Thai Binh & Thermal Power Plant, Phu My Fertilizer Plant… Moreover, PVI Insurance has played a significant role in the market as a pioneer in providing insurance programs to foreign markets, for example rig building projects in South Korea, exploiting activities in overlapping areas PM3 between Malaysia and Vietnam and petroleum exploration and production projects in Algeria, Russia, Venezuela, Cuba and China, etc., which has brought a large source of foreign currency into Vietnam Adding to its oil and gas insurance business, PVI Insurance is pushing the supply of non oil and gas insurance services such as motor insurance, personal accident insurance, Property All Risks Insurance (PAR) and Construction All Risks Insurance (CAR) for such national major projects as Nghi Son refinery and petrochemical complex, Formosa integrated steel and port complex, Dung Quat refinery plant, Thai Binh TPP, Thai Binh TPP, Vung Ang TPP, Nhon Trach TPP, Nhon Trach TPP, Ca Mau TPP, Ca Mau TPP, O Mon TPP unit 2, Mao Khe TPP, Lai Chau HPP, Xekaman Hydropower Plant, Ban Chat HPP, Nam Chien HPP, Dong Nai HPP, Dong Nai HPP, Ben Thanh – Suoi Tien Metro Line, Noi Bai – Lao Cai Expressway (A6), Can Tho Bridge, Nhat Tan Bridge, Ha Noi – Hai Phong Highway, Long Thanh – Dau Giay Highway, Van Phong Port, Cai Mep Port, National Museum, PVN Tower… For the purpose of safeguarding the company’s insurance business as well as diversifying its insurance products and improving service quality, PVI Insurance has regularly broadened and enhanced its close cooperation with the world’s leading underwriters like Munich Re, Zurich, Swiss Re, Lloyd's Syndicates, HDI Gerling, QBE, AIG Currently, PVI Insurance is considered by them to be their strategic partner in Vietnam through the signing and maintenance of Energy Facility with a limit of 500 million USD and Onshore Facility with a total insurance value worth 1.5 billion USD With regards to its claim settlement, PVI Insurance has always coordinated with the related parties to promptly determine the cause of losses and conduct satisfactory indemnity for the customer Up to now, PVI Insurance has settled a great number of big claims with indemnity amount reaching millions of USD such as losses of CNV1P Well (24 million USD), Pipeline losses of JVPC (12 million USD) and goods losses of Saigon Commercial Corporation (10 million USD), Can Tho Bridge (3 million USD), Da Rang Bridge (350,000 million USD), etc According to the market data reported by Association Insurance Vietnam in the first half of 2013, PVI Insurance ranks top in Vietnamese non-life insurance market regarding market share and remains in its high position in terms of basic financial criteria such as capital, owner equities and total assets Commanding strong customer faith and enormous confidence, PVI Insurance, in accordance with its vision for the period 2010-2015, endeavors to become a leading Insurance and Financial Group in Vietnam, with its brand name to be recognized internationally PVI’s development milestones On the 21st of January 1996, Petro Vietnam Insurance was established as a local insurance company for the petroleum industry, managing all risks and assets of the sector in the country and internationally In 2006, following the trend of the market economy, PVI equitization conducted a series of changes in the governance structure and business strategy, and was renamed the Petro Vietnam Insurance Corporation This began its road to success On the 30th of December 2006, PVI began offering shares to the public In 2010, PVI became the first insurer to receive the financial rank of B + (Good) by the financial ratings body AM BEST On the 21 st of September 2010, PVI was awarded the First Class Labour Order by becoming a strategic partner of the Oman Investment Fund (OIF) in 2010, and through a series of ambitious projects PVI confirmed their position of number on the insurance market of Vietnam, entirely convincing World Finance Magazine (UK), who then awarded PVI the prestigious "State Insurance of the Year 2010" award On the 27th of May 2011, PVI was awarded the title Hero of Labour In August 2011 they restructured to create the parent company JSC PVI, a company with two subsidiaries operating in the field of non-life insurance (PVI Insurance Corporation) and reinsurance (PVI Reinsurance Company) In November 2011, PVI become strategic partners of the Talanx Group (Germany) In 2012, to finalize the operational model according to the plan proposed restructuring, PVI-prepared for the introduction of the 02 subsidiary Limited Liability Company PVI Sun Life Insurance Company Life Shares Asset Management PVI AM PVI Sun Life's goal, the company owned 51% by PVI charter capital and Sun Life Financial (Canada) owned 49% of charter capital, is to become a leading enterprise in the field of life insurance in Vietnam Month 7/2012, PVI has also increased its chartered capital to 2342 billion through the issuance of private placement shares for existing shareholders' strategy Talanx Group (Germany) In 2013, PVI focused on strengthening corporate restructuring PVI Sun Life Insurance was officially launched Subsequently, on the 16th of June in Ho Chi Minh City, the 27th of July in Hanoi and the th of August in Da Nang City, PVI Sun Life Insurance placed its life insurance products on the market In the same year, the General Corporation PVI Reinsurance (PVI Re) has completed transition to a model stock company with registered capital of 668 billion, of which 68.86% of the capital belongs to PVI PVI Re reinsurers are also eligible under the Security List of Talanx In 2014, PVI has received recognition from highly reputable organizations within and outside the country, received a financial rating of B + (Good) from international rating agency AM Best in both the fields of insurance and reinsurance, and been selected by Forbes as one of 50 best listed companies on the stock market of Vietnam ... DIVISION HUMAN RESOURCES DIVISION BRANCHES PVI SOUTH PVI HUE PVI HA NOI PVI TP HO CHI MINH PVI THANG LONG PVI SAI GON PVI DONG DO PVI BEN THANH PVI HAI DUONG PVI VUNG TAU PVI QUANG NINH PVI TAY NAM PVI. .. Factors effecting human resource quality of PVI Insurance Corporation2 7 Internal factors 27 2.2.2 External factors 37 2.3 Human resource quality of PVI Insurance Corporation ... assessment of the production - the company''s business period 2010 - 2014 .18 CHAPTER HUMAN RESOURCE QUALITY OF PVI INSURANCE CORPORATION 21 2.1 Human resource of PVI Insurance Corporation