(Tiểu luận) operations managementgroup assignmentservice design of sun life insurance service in tp bank

Sốố thứ tự:…… NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL OPERATIONS MANAGEMENT GROUP ASSIGNMENT SERVICE DESIGN OF SUN LIFE INSURANCE SERVICE IN TP BANK Lecturer: Prof Dr Sanjeev Phukan Prof Dr Nguy%n QuĀc Duy Students: Đinh Hải Đăng - EMBA21026 Phạm Thị Hà - EMBA21003 Cao Minh Hieu - EMBA21004 Tran Thi Tuyet Nhung - EMBA21012 Class: E-MBA21 Hanoi, May, 2023 Contents COMPANY PROFILE 2 INTRODUCTION THEORITICAL APPLICATION FOR SCANING PROBLEM CURRENT SITUATION & PROBLEMS IN OPERATION .9 SOLUTION FIND OUT 13 CONCLUSION 17 COMPANY PROFILE Company name: Tien Phong Commercial Joint Stock Bank Type of business: Joint stock company Line of business: Financial services activities Date of establishment: 05/05/2008 Head office address: TPBank Building, No 57 Ly Thuong Kiet, Tran Hung Dao Ward, Hoan Kiem District, Hanoi City Phone number: (84.24) 3768.8998 Number fax: (84.24) 3768.8979 Website: https://tpb.vn TPBank is a bank that inherits the strengths of modern technology, market experience and financial potential of strategic shareholders including: DOJI Jewelry Group, FPT Technology Group, Finance Company International Finance Corporation (IFC), Vietnam Reinsurance Corporation (Vinare) and SBI VenHolding Financial Group Pte Ltd., Singapore Tien Phong Bank always aspires to become a transparent, efficient and sustainable financial institution, bringing the best benefits to shareholders and customers TPBank has signed an exclusive insurance contract with Sun Life Vietnam since October 2019 Accordingly, Sun Life Vietnam will be the partner to provide exclusive life insurance products for TPBank in the next 15 years With the cooperation with TPBank and based on the research on customers and products, Sun Life Vietnam will develop specialized products/packages suitable to the bank's characteristics and commit to implementing the following activities offering after-sales service to customers With the goal of developing a retail bank in which the contribution of toll products will increase and based on the actual needs of the market, TPBank has sought and selected Sun Life Vietnam as the partners to create brand resonance and implementation potential while ensuring the long-term strategic direction of the bank Sun Life Vietnam is a member with 100% capital of SunLife Financial Group, entered the Vietnamese insurance market in 2013, in which bancassurance is identified as a key and strategic business activity The level of investment and optimal concentration of resources for this Contract signed with TPBank is highly appreciated, because Sun Life Vietnam has not officially implemented bancassurance with any other banks in Vietnam On the side of TPBank, TPBank's 9-month financial statements of 2019 show that the bank's total profit before tax reached VND 2,404 billion, an increase of VND 790 billion, which is a growth of more than 50% compared to the same period last year and is likely to Exceeded annual profit target Total assets of the bank are currently over 154 trillion dong, of which total deposits are over 138 trillion dong, and the quality of the asset portfolio is evaluated well with a bad debt ratio of only 1.48% Sun Life Vietnam with a wide range of life insurance offers comprehensive protection solutions for customers Thereby helping customers enjoy life with peace of mind, reducing the financial burden against unforeseen risks in the future Sun Life Vietnam - Helping Customers achieve lifelong financial security and enjoy a healthier life! ✓ Savings insurance ✓ Health insurance ✓ Investment insurance ✓ Accident insurance Outstanding service for customers is the focused strategy Sunlife's Customer Service department is dedicated to their work All activities of the company focus on improving customer experience and strive to help customers live brighter lives - Regarding products: it is recommended to deploy simple insurance products with bank-specific characteristics, such as the following products: Additional products for the bank's products: * Credit balance life insurance * Insurance for loans * Insurance for savings * Health insurance and human accidents Insurance products that banks not have: * Whole life insurance, mixed insurance, recurring payment insurance… INTRODUCTION Service design plays a critical role in the operation management of TP Bank, particularly in the provision of its life insurance service As a financial institution that provides insurance products to customers, TP Bank recognizes the importance of designing its services to meet the specific needs and preferences of its customers The service design process for TP Bank's life insurance service involves a systematic approach to designing and delivering insurance products that are tailored to the unique needs of customers, including the identification of customer needs, the development of insurance offerings, the creation of insurance delivery processes, and the testing and refinement of the service design By focusing on service design, TP Bank can improve customer satisfaction, reduce costs, and achieve long-term success in the competitive insurance industry The service design process can offer several benefits for the life insurance service of TP Bank By designing its services in a way that meets the specific needs and preferences of its customers, TP Bank can improve customer satisfaction and loyalty, enhance operational efficiency, and maintain a competitive edge in the insurance industry One of the primary benefits of service design for TP Bank's life insurance service is the ability to create insurance products that are tailored to the unique needs and preferences of customers Through the service design process, TP Bank can identify the specific features and benefits that customers are looking for in a life insurance product and develop offerings that meet these requirements This can lead to increased customer satisfaction and loyalty, as customers are more likely to choose TP Bank's life insurance products over those of its competitors Document continues below Discover more from: Operations Management Đại học Kinh tế Quố… 132 documents Go to course 12.3 Phạm Tố Uyên OM - OM_Individuals_123 Operations 100% (1) Additionally, service design can help TP Bank to improve its Management operational efficiency by identifying and eliminating inefficiencies in the insurance delivery process By streamlining its processes and reducing costs, TP Bank can offer more competitive OM Group-3 Report - pricing for its life insurance products and improve its profitability over the long term 37 Business Idea Operations 100% (1) Finally, service design allows TP Bank to stay flexible and adaptable to changing Management customer needs and preferences By constantly evaluating and refining its life insurance service design, TP Bank can ensure that its offerings remain relevant and Report Artemis Smart competitive in a rapidly changing marketplace 17 Watch Operations Management 100% (1) Tài liệu OM - OM document Operations Management 100% (1) Final Paper 29 Operation… Operations Management 100% (1) Operations and 27 Project Management Operations Management 100% (1) THEORITICAL APPLICATION FOR SCANING PROBLEM By the document of Russell and Taylor, named “Operations and Supply Chain Management” Service design monitoring or scaning problem process in operations management applied for TP Bank’s service as below:  Identify the customer needs and wants: This step involves doing research to gain a deep understanding of the target customers Banks can use a range of methods, such as customer surveys, focus groups, and analyzing customer feedback to uncover customer needs and wants This information should include demographics, behavior, preferences, motivations, and pain points By understanding the customer's needs and wants, banks can design a service that meets their requirements  Define the service concept: Based on the customer needs and wants identified, the bank can define the service concept This involves outlining the services that the bank will offer, identifying the unique value proposition of the service, and determining how the service will be delivered Banks should consider their target market segment and ensure that their service concept aligns with their overall business strategy  Develop the service blueprint: The service blueprint is a detailed plan of the service delivery process that outlines all the stages involved in delivering the service The blueprint includes the physical and digital touchpoints involved in delivering the service, the technology used, employees, and customer interactions Banks should use the blueprint to identify any potential bottlenecks that could disrupt the service delivery process and to identify opportunities for improvement  Train employees: Once the service blueprint is developed, the bank needs to train its employees in delivering the service This involves providing them with the skills, knowledge, and resources required to deliver high-quality and consistent services Training should cover customer service, service delivery channels, and technology, and should ensure all employees can handle customer complaints effectively  Implement the service: Once the service blueprint is developed and employees are trained, the bank can implement the service This involves putting the necessary processes and systems in place to deliver the service This could include implementing new technology, redesigning service delivery channels, and reorganizing the workflow to optimize the service delivery process Banks should ensure that their systems and processes are aligned with their service concept and service blueprint  Monitor and evaluate the service: After the service is implemented, banks need to continuously evaluate its effectiveness This involves gathering feedback from customers, analyzing service reports, and capturing data on service metrics such as wait times, customer satisfaction, and service quality Banks should use this information to identify opportunities for improvement, optimize the service delivery process, and ensure that the service meets the evolving needs and wants of their customers Evaluation should be an ongoing process, and banks should be ready to adapt their service as the market and customer needs change By following these steps of designing a service, we will find out the problem in TP Bank life insurance service and propose the solutions CURRENT SITUATION IN OPERATION & PROBLEMS Internal Operation Process - About how to sell and introduce products: Choose to sell through bank staff and only sell through the bank's branch systems as well as through employees of the insurance business sitting at the bank Research some other distribution channels such as telemarketing, internetbanking - About regarding training for bank staff: Propose a simpler and more concise program, covering the nature of insurance products, insurance selling skills, rights and obligations of insurance agents Bank staff training programs are shorter than traditional agent training programs Training methods should be flexible, which can be online, centralized, or remotely, in line with the needs and operational characteristics of banks - About commission: There should be a more attractive commission payment mechanism for the insurance affiliate model Paying commissions to the bank or its representative signing a cooperation agreement with the insurer and not paying commissions to each bank employee The Situation One of the characteristics of bank-linked insurance products is group insurance products Currently, the regulations on group insurance commission payment are not fair compared to individual insurance products, which is also a point that discourages banks as well as bank employees from using their time working time to introduce and sell insurance products With the above solutions, along with the initiative of each insurance business, the efforts of the management agencies, the cooperation of the banks, this will certainly be an effective distribution channel, contributing to market development 10 After the recent cases, we need to review regulations to standardize relevant personnel such as insurance agents and consultants Insurers need to review internal policies and procedures as well as review the network of insurance agents and consultants There are main reasons leading to the phenomenon of metamorphosis as before Firstly, objectively, the financial market and securities in particular face difficulties while insurance carries investment fees Along with that, the contract with customers to invest accounts for 85% As such, many insurers have gone astray Second, the law is not strict with both the seller and the buyer The seller repeated it or times, but the customer did not read it carefully Then when they don't it, they start to sue each other The subjective problem is that the quality of our insurance staff's advice is not good Somewhere there is also pressure on revenue, running after sales Insurance knowledge is complex Currently, insurance buyers also have problems Because the insurance buyer doesn't know what our purpose is? What we buy insurance for? For hedging risks or accumulating for future children or profitable investment Finally, the compliance in participating in the contract of the insured is not high Even if it is difficult to understand, customers should also read the chapter, the most important item is related to the level of compensation, the time to participate in insurance Regarding the implementation the internal service process of Sunlife's life insurance products at TPBank, there are some root problems that lead to the current situation as follows: 11  Sales process and Human resource Insurance consulting skills Banking products can include credit products, card products, international payment products that users have available needs to find the bank to provide services However, with insurance products, most not have a ready-made need, but must be elicited, calculated individual risk levels and investment programs Thus, compared to individual insurance agents, bankers have a better professional background to receive in-depth insurance training programs However, at present, insurance training programs specifically for bankers are very lacking The bank staff themselves are not interested in attending the courses Attending insurance training courses is a mandatory requirement for insurance agents to be able to consult and find customers, but in banks, this is not necessary because there are already existing sources of customers very large item Some banks even include the life insurance policy in the loan package as an attached product, if the customer buys insurance, the interest rate will be reduced Thus, bank staff When consulting insurance will not need to anything to elicit other needs for customers Because of this ease, many bank employees not need further training As for savers or needing to borrow money from a bank, instead of listening to advice on insurance products, bank staff only need to "suggest" the high interest rate difference, customers find it beneficial, again, easier to disburse should agree to participate, even if there is no need to buy insurance  Misunderstanding the service Universal and unit-linked insurance products are very complicated, you don't have to want to give advice, leading to the situation that many people, even though they have been licensed to operate as insurance agents, are still unable to provide 12 standard advice , causing customers to lose many benefits" Banks must provide complete and accurate information about insurance products and partner insurers to the insurance buyer, and must not arbitrarily declare information to the insurance buyer without prior consent consent of the buyer and prohibit the act of "forcing" the customer to buy insurance Bank staff must also clearly explain the insurance benefits, rights, and obligations of the insurance buyer  Bonus mechanism for Employees Commented that the maximum life insurance service commission up to 40% is too high That also makes the employees sell life insurance at all costs, find ways to exempt customers from signing contracts, and pay for the first year Because of that, in the consulting process, many times, employees not say all the risk factors and exclusions of insurance The rules in the contract are quite tricky, there are many exclusions, so when a dispute occurs, the insurance company will not make compensation to the buyer If the customer has a strong financial background, actively participates at a low level, there is no problem But many customers buy many different contracts, but in fact, when they have no money to pay, they also must cancel the contract It's like the people who borrow money from the bank are often respectful, so when they are offered to buy life insurance, they agree to buy it but then stop paying 13 SOLUTION FIND OUT Solution for Sales Process and Human resource: Improving sales skill - Provide Sales Training: TP Bank can provide its sales representatives with training programs that focus on improving their sales skills The training program should cover various aspects of sales such as product knowledge, sales techniques, communication skills, and objection handling We can see that the problem is mainly by the sales skill, to make it professionally, TP Bank should consider to create a mandatory course to ensure that the sales team know the basic sales step before reaching out the customer - Improve Customer Service: Providing excellent customer service can help to increase customer satisfaction and lead to repeat business TP Bank can train its sales representatives to provide excellent customer service by listening to customer needs, providing timely and accurate information, and following up on customer inquiries - Leverage Technology: TP Bank can leverage technology to improve its sales process For instance, TP Bank can use customer relationship management (CRM) software to manage customer interactions and track sales leads This can help to improve the efficiency and effectiveness of the sales process - Focus on Target Market: TP Bank can improve its sales skills by focusing on its target market By understanding the needs and preferences of its target market, TP Bank can develop sales strategies that resonate with them and improve its sales performance Solution for the misunderstanding the service: Simplify the contract Misunderstandings related to the agreement and policies of a life insurance contract can occur when customers find it difficult to understand the information 14 provided to them This can happen when the contract is too lengthy, technical, or filled with jargon that the customer is not familiar with To solve this problem, TP Bank can adopt the following solutions: - Simplify the language used: TP Bank can simplify the language used in the life insurance contract to make it easier for customers to understand This can involve replacing technical terms with simpler language and breaking down complex sentences into simpler ones - Use visual aids: TP Bank can use visual aids, such as infographics or diagrams, to help customers understand the information provided in the contract This can help to simplify complex information and make it more accessible - Provide a summary: TP Bank can provide a summary of the key points of the life insurance contract This can include the terms and conditions, benefits, premiums, and other important information Providing a summary can help customers to understand the most important aspects of the contract quickly and easily - Offer explanations: TP Bank can provide explanations of the terms and conditions of the life insurance contract to customers who are having trouble understanding the information provided This can be done through in-person or online consultations with trained representatives who can answer questions and clarify any misunderstandings - Offer educational materials: TP Bank can offer educational materials to customers that explain the various aspects of the life insurance contract in simpler terms This can include brochures, videos, or online resources that provide information on the key terms and conditions of the contract 15 Overall, by simplifying language, using visual aids, providing summaries, offering explanations, and providing educational materials, TP Bank can help customers better understand the terms and conditions of the life insurance contract and reduce misunderstandings Solution for the incentive scheme: Reduce the cancelation - Set reasonable incentives: TP Bank can set more reasonable incentives that align with the actual value of the policies sold By doing so, sales representatives will be incentivized to focus on selling policies that are suitable for customers, rather than simply pushing for high-value policies - Offer Incentives based on customer satisfaction: TP Bank can link incentives to customer satisfaction For instance, sales representatives can be rewarded based on customer feedback, renewal rates, and policy duration This can encourage sales representatives to prioritize customer satisfaction over shortterm gains - Provide training: TP Bank can provide training to its sales representatives on the importance of selling policies that match the financial needs of customers This can include training on how to identify customers' financial needs and how to explain policies in a clear and transparent manner - Monitor and track sales: TP Bank can monitor and track sales to ensure that sales representatives are not selling policies that customers cannot afford By monitoring sales, TP Bank can identify any patterns or trends that suggest sales representatives are selling policies inappropriately - Create a customer-centric sales culture: TP Bank can create a sales culture that prioritizes the needs of the customer This can involve creating incentives for sales representatives who provide excellent customer service, 16 as well as creating a company-wide culture that emphasizes the importance of customer satisfaction Furthermore, TPBank's side performs the tasks authorized by the business in the Sunlife agency contract, so it is necessary to closely coordinate with Sunlife in performing after-sales customer care services and handling recommendations., customer complaints timely and satisfactory TP Bank must strictly comply with legal regulations on insurance agency activities, not directing/orienting bank staff to act as agents to force depositors/borrowers to buy insurance in any form; In case bank employees commit violations, they need to be strictly handled It is necessary to issue internal regulations to guide employees to carry out agency activities, and to handle measures for employees performing agency activities in case of violations 17 CONCLUSION In conclusion, the service design process is essential for the success of TP Bank's life insurance service By implementing a customer-centric approach to service design, TP Bank can create a life insurance service that meets the needs and expectations of its customers This involves understanding the customer’s journey, identifying pain points, and designing solutions that address these pain points Furthermore, TP Bank can improve the sales skills of its sales team by offering training and creating a sales culture that prioritizes customer satisfaction Lastly, by simplifying the language used in life insurance contracts, using visual aids, providing summaries, offering explanations, and providing educational materials, TP Bank can reduce misunderstandings and improve customer satisfaction Overall, by adopting a service design approach to its life insurance service, TP Bank can create a service that is customer-focused, efficient, and sustainable 18