That’s why postgraduate researcher selected research subject: "Development of bancassurance activities of insurance companies under the Vietnamese Commercial State Banks." This is the ne
Trang 1Ministry of education and training
National economics university
DoAn thÞ thanh tAm
DEVELOP BANCASSURANCE OF INSURANCE
COMPANIES UNDER VIETNAMESE STATE
COMMERCIAL BANKS
Major: FINANCIAL BANKING
Code: 62340201
Ph.d thesis summary
Hµ Néi – 2014
Ministry of education and training National economics university
Doan thÞ thanh tam
DEVELOP BANCASSURANCE OF INSURANCE COMPANIES UNDER VIETNAMESE STATE
COMMERCIAL BANKS
Major: FINANCIAL BANKING Code: 62340201
Ph.d thesis of economics
Science guide: 1 Doctor- Professor Dinh van son
2 Doctor nguyen thi hai ®uong
Trang 2THE THESIS COMPLETED AT
NATIONAL ECONOMICS UNIVERSITY
Science guide: 1 Doctor- Professor.Dinh van son
2 Doctor nguyen thi hai ®uong
GENERAL INTRODUCTION
1 OPENING
a Choosing subject reasons
In Vietnam, Bancassurance is not a new concept but these associated activities are still in the initial steps for development at the present and in the future Vietnamese State Commercial Banks develop bancassurance model which is suitable for the overall trend with many advantages in the market, brand, infrastructure and resource However, the results of their operations themselves in bancassurance has not been effective such as the case study of Bao Ngan and VCLI; or their development is not accordance with their ability in fact due to their difficulties in exploiting market such as the case of BIC, ABIC That’s why postgraduate researcher selected research subject: "Development of bancassurance activities of insurance companies under the Vietnamese Commercial State Banks." This is the necessary research from that researcher proposed the solutions to develop bancassurance activities of Insurance companies under the Vietnamese Commercial State Banks to best exploit their existing potential
b Research purposes
Research objectives set out for this subject is to evaluate the current status and development activities of bancasurance and clarify the factors affecting the development of bancassurance of the Insurance Companies under Vietnamese Commercial State Banks so as to propose appropriate development solutions
Specific objectives:
- Formalize and clarify the fundamental theoretical issues about bancassurance and its activities
- Analyse the current situation of developing bancassurance activities, clarify the factors affecting its development of the Insurance Companies under the Vietnamese State Commercial Banks
- Propose solutions for Bancassurance development of the Insurance Companies under Vietnamese State Commercial Banks in the coming time
Research questions:
To achieve the set objectives, the subject should answer the following research questions:
- What are bancassurance and its activities?
Trang 3- How are bancasurance activities currently developed in every country? What
can Vietnamese Insurance companies learn from the experienced bancasurance
development activities in the world?
- Why haven’t bancasurance activities of the Insurance Companies under the
Vietnamese State Commercial Banks achieved as our expectation?
- Which trend should the Insurance Companies under the Vietnamese State
Commercial Banks follow to develop bancasurance activities?
c Object and scale of research
Object of research:
The object of this PhD thesis will focus on studies of developing bancassurance
activities of the Insurance Companies under the Vietnamese State Commercial
Banks
Scale of research:
- Space: This PhD thesis focused on developing bancassurance activities of the
Insurance Companies under the Vietnamese Commercial State Banks
- Time: This PhD thesis mainly reviewed and analysed bancassurance activities
of the Insurance Companies under the Vietnamese State Commercial Banks
during the period from 2007 to 2012
2.Overview of Research
There are many international studies on bancassurance in the regions, in
many countries as well as of banks or financial corporations in the world The
study by Wong and Cheung (2002), and Syprus Violaris (2001), A Karunagaran
(2006), Clarence Wong, Mike Bamahan, Lucia Bevere (2007), Elisabeth
Standler (2010), Steven I Davis (2007) for see overview of bancassurance in
various insurance markets in the world related to the bancassurance model of
banks and financial corporations, product development of bancassurance in the
countries, the selection of the bancassurance partners and target market, develop
effective distribution channel These studies provided valuable experience for
Vietnamese banks in developing bancassurance model
In Vietnam, the study of bancassurance is only at the graduate level In
theory, studies of the authors Do Minh Hoang (2009), Vo Quoc Dat (2009),
Vietnam Pham Ha (2010), Nguyen Thi Giang (2011), Nguyen Thi Van (2011),
Nguyen Thi Le Thuy (2011) are mainly referring to the general theory of
bancasurance related to models, products and distribution channels Those
studies provide the general concept of bancasurance but they do not summarize
research or develop a unified concept of bancasurance Those studies remain a single analysis at a bancasurance of a bank, or as study of Pham Ha (2010) is the market assessment overview but it is not in detail and it has no assessment of the potential market
Based on the current research on bancassurance in Vietnam, there is a lot
of space for postgraduate author to research involving model selection, product development, distribution channel development, etc Postgraduate author selected to research is solving the problem that the previous studies which do not concern that is assessing comprehensively the development of bancassurance of the Insurance Companies under the Vietnamese State Commercial Banks regarding the bancassurance model selection, evaluating the overall product development and distribution channels of the Insurance Companies under the Vietnamese Commercial State Banks and assessing factors affecting this model at the present and in the future
Trang 43 Rationale and scientific hypotheses
Research Hypothesis of the research is that the development of
bancassurance of the Insurance Companies under the Vietnamese State
Commercial Banks is not really effective, the insurance companies only exploit
a very small market share of the potential market at the banks The cause of this
problem is the factors that influence both inside and outside the insurance
company However, the insurance companies can fully improve their internal
factors to develop bancassurance activities efficiently and exploit a possible
maximum of its potential market
4.Research methods
4.1 Research Design
The research is an exploring study because bancassurance in Vietnam is a
new formation and develops to meet the needs of society and the general trend
of development of the banking and financial institutions Research is done in the
context of the development of bancassurance activities of Vietnamese State
Commercial Banks occurring naturally and follows the development trend of the
market in normal environment, its activities occur in a usual manner without any
interference and impact from the study
4.2 Information collection
Data used for the study of thesis consists of primary and secondary data
4.3 Information Analysis
The main analytical information methods used are qualitative analysis,
synthesis and comparison On the basis of data collected from the information
collection methods mentioned above, the authors analyzed and compared the
information to get the overall picture on development status as well as
bancassurance developing potential of the State Commercial Banks in Vietnam,
focusing mainly on the development of model, product and distribution network
Besides the two methods of analysis mentioned above, quantitative
analysis methods were used to analyze the information obtained from the
sociology survey information for the purpose of retesting the results of
qualitative analysis
Quantitative analysis of the study will be based on the analysis of discrete
variables, so the author has used the non-parametric testing, correlation analysis
with discrete variables and hierarchical regression models to confirm the
comments related to bancassurance activities in the State commercial banks
5 Research Results
After completion, the thesis has achieved the following results:
- Develop and introduce the formal concept of model bancassurance model and bancassurance distribution channel, systemize theoretical issues related to bancassurance including products, distribution channels, the impact factor, etc
- Determining causes of success or failure of the bancassurance in markets and banks, the insurance financial corporations
- Identify the key factors affecting the development of the bancassurance of the Vietnamese Commercial State Banks, leading to the reasons why the bancassurance has not fully exploited or exploited the existing potential ineffectively
- Assess accurate the potential market of Bancassurance of the Vietnamese Commercial State Banks
- Propose solutions for Bancassurance development towards overcoming the influenced factors of internal bancassurance and insurance banks linkage
6 Structure of the thesis
As for the structure, in addition to the introduction, conclusion and attacted statement data, the thesis is divided into three chapters:
Chapter 1: General Theory of Bancassurance Chapter 2: Current status of the Bancassurance development of the Insurance Companies under Vietnamese State Commercial Banks
Chapter 3: Solution for the development of Bancassurance development of the Insurance Companies under Vietnamese State Commercial Banks
Chapter I: General Theory of Bancassurance
1.1 An overview of bancassurance 1.1.1Formation and development history of bancassurance 1.1.2 The concept and characteristics of bancassurance
From the actual development of bancassurance in the market and studies related to the bancassurance of the specialists we can summarize the basic terminology termsrelated to bancassurance as follows: "Bancassurance is a combination of insurance and banking services to maximize the service and profit of the parties "; Bancassurane distribution channel is defined as " It is the distribution channel of insurance products through banks, distribution of insurance products to bank customers." In the insurance company,
Trang 5"bancassurance activities" as: "The company's efforts in developing insurance
products, establish relationships with banks to develop effective distribution
channels, and other activities aimed at achieving the highest results from
bancassurance distribution channel " Regardless of the level of development of
bancassurance, bancassurance operation is always crucial factor
1.1.3 Bancassurance models
On the basis of summarizing bancassurance activities in several countries,
the researches classified three basic bancassurance models: distribution
agreement model: dealer partners and develop more strategic alliances, joint
venture integration model and the single ownership model
1.2 Development of bancassurance activities in insurance companies
1.2.1 Bancassurance with the development of the insurance companies
1.2.2 Bancassurance products
1.2.2.1 Traditional insurance products
1.2.2.2 Insurance Integrated Products
1.2.2.3 Development of bancassurance products
The insurance products developed to serve bancassurance activities
include traditional products and integrated products (insurance products
associated with the integration of banking products) The level of product
development often depends on market demand, the capacity of insurers, socio-
economic conditions
1.2.3 Bancassurance distribution channel development
Bancassurance distribution channel can be developed in many directions:
Distributed in the transaction department, direct response distribution, online
distribution (via the Internet)
The insurance company (bancassurer) organizes distribution models in three
basic models: matching model, expert model and financial planning model
1.2.4 The indicator of the level of development of bancassurance activities
of insurance companies
1.2.4.1 The absolute targets
These indicators include revenue from bancassurance fee, the number of
bancassurance agents, bancassurance product number: the number of traditional
products and the number of integrated products, commission fees
bancassurrance channel In life insurance could use additional criterias: the
amount of insurance money, the insurance money due to new exploitations, the
insurance money due to exploitations of new insurance revenue, maintenance contracts in effect, the number of new mining contracts
1.2.4.2 The relative targets
These relative figures will be used for: revenue growth of operating bancassurance fee, proportion of total direct bancassurance revenue, the rate of successful exploitation of market potential
1.3 Factors affecting the development of bancassurance of insurance company
1.3.1 The objective factors
Socio-economic condition, legal environment, spending cultural, competitors
1.3.2 The subjective factors
Partners and level of commitment of the parties in integration, the bancasurance target market, product and technology, human resource quality
1.4 Experience in developing activities bancassurrance 1.4.1 Development of bancassurance activities of several banks and financial insurance corporations
Thesis researched experience in developing bancassurance of Allianz, Aviva, City Group Maybank, Wells Fargo These are leading financial corporations in the world and have many years of experience in developing world- wide bancassurance in different markets
1.4.2 Bancassurance developing experience for Vietnam Insurance Companies
Based on the study of financial corporations in the development of bancassurance, the author found that the regulatory role of the legal regulations r
is a premise for the development of bancassurance activities in each country In order to development successfully, the insurance companies need to focus on several issues as follow: First, select suitable partners and bancassurance models This factor can make a success of bancassurance but for many insurance companies this is the decisive factor to the failure due to inappropriate partners Second, the choice of the market and target customer segments successful Third, the development of diversified and proper products Fourth, there is a need to focusing on developing the quality of network and distribution channels quality
Trang 6Chapter II: Current status of Bancassurance
development of the Insurance Companies under
Vietnamese State Commercial Banks
2.1 Overview of the Insurance Companies under Vietnamese State
Commercial Banks
2.1.1 Insurance joint stock Corporation of Bank for Investment and
Development of Vietnam
Insurance joint stock Corporation of Vietnamese Investment and
Development Bank (BIC) is the earliest bancassurance model in the
bancassurance models of Vietnamese state commercial banks BIC was formerly
Vietnamese- Australian joint venture insurance company established on the
basis of a joint venture between Bank for Investment and Development of
Vietnam and QBE Insurance Group of Australia In 2006, BIDV bought the
shares of International Insurance Group QBE (Australia) in Vietnamese-
Australian joint venture insurance company and officially went into operation
with the company trading as Insurance joint stock Corporation of Vietnamese
Bank for Investment and Development (BIC)
2.1.2 Insurance Company of Vietnamese Agricultural and Rural
Development Bank (ABIC)
Insurance Company of Vietnamese Agricultural and Rural Development
Bank (ABIC) established in 2006 is the bancassurance model developed by
Vietnamese Agriculture and Rural Development Bank ABIC can be classified
into group of bancassurance single owned model with controlling shareholder is
Vietnamese Bank for Agriculture and Rural Development, with 51% of the
charter capital This model allowed Agribank to offer customers many services
as well as opportunities for ABIC to promote its active right in exploiting and
developing customers market of Agribank
2.1.3 Insurance Company of Vietnamese Industrial and Commercial Bank
(Bao Ngan)
Insurance Company (Bao Ngan) is the bancassurance model developed by
Vietnamese Industrial and Commercial Bank in the field of non-life insurance
Bao Ngan Bank is classified as single ownership model with legal form of a
member Limited Insurance Company of Vietnamese Industrial and Commercial
Bank owned by Vietinbank Bao Ngan had formerly owned by Asia Insurance
joint venture company - Industrial and Commercial Bank In 2008, Vietnamese Industrial and Commercial Bank acquired the entire equity of the foreign partner
in the joint venture company and the company officially moved into Insurance
Company of Vietnamese Industrial and Commercial Bank (Bao Ngan) and had independent accounting
2.1.4 Vietin - Aviva Limited Life Insurance Company
Vietin- Aviva Limited Life Insurance Company (VietinbankAviva) is licensed under the license No 64/GP-KHBH July 2011 as a joint venture between Vietinbank and Aviva Insurance Group, the biggest Britain insurance group This is the bancassurance model established in the form of alliances strategy in the field of life insurance
2.1.5 Vietcombank Cardif Limited Life Insurance Company
(VCLI) is bancassurance model developed by Vietnamese Foreign Trade Bank (Vietcombank) VCLI is the life insurance company established in 10/2008 on the basis of strategic cooperative venture between Vietnamese Foreign Trade Bank (Vietcombank), South East Asia Bank (Seabank) and BNP Paribas Assurance (Cardif) Company – a life insurance company of European leading BNP Paribas financial group
2.2 Reality bancassurance activities of the Insurance Companies under Vietnamese Commercial State Banks
2.2.1 Product development status 2.2.1.1 Product development at BIC
The insurance products marketed by BIC include the traditional insurance products and integrated products BIC Integrated Products are in association with each group of banking products BIC - Bình An associated with the credit operation and is currently the leading bancassurance products, BIC- Bình An Comprehensive Security products associated with savings products, and BIC - Visa Gold associated with the card service
2.2.1.2 Product Development at ABIC
ABIC provides a full range of traditional insurance products available in non-life insurance market Products integrating with existing products of ABIC bank is Credit Security for household customers and individuals having relation with deposit or mortgage loan at Agribank This product is successfully developed by the ABIC because they are suitable for customers, simple and easy risk management leading to lower costs
Trang 72.2.1.3 Product Development at Bao Ngan
Bao Ngan only develops traditional insurance products similar to
insurance products of other insurance companies in the market to serve
customers of Vietinbank
2.2.1.4 Product Development at VCLI and VietinAviva
VCLI provide both savings products and protective products However,
the only product currently offered in the market is VCLI credit insurance
products serving personal credit customers of Vietcombank and Seabank
Life insurance products developed by VietinAviva focus on two types of
life insurance as saving life insurance and death period life insurance and they
are divided into three groups of products: protection product, savings products
and bancasssurance product However currently VietinAviva mainly exploits
Phát An Bảo Tín products
On overall, the development of bancassurance products except Bao Ngan
shows the remaining bancassurance as BIC, ABIC, and VietinbankAviva VCLI
have developed complement integrated product line, traditional product line so
as to provide the convenience to banks’ customers as well as protection for
banks’ customers and banks However, at both the 4 bancassurance products,
integrated product group is only in human insurance related to human mortality
risks, personal accident and focuses on credit customer
2.2.2 Current status of development of the bancassurance distribution
channel of the Insurance Companies under Vietnamese State Commercial
Banks
2.2.2.1 Bancassurance distribution channel development at BIC
BIC contracts directly agent with BIDV branches in the provinces The
linkage between BIC and BIDV in developing new bancassurance distribution
channel is only at the level of transactions through agency contracts, BIDV has
no relationship with the direction of insurance exploitation of branch BIDV
branches - BIC and BIC agents BIC Bancassurance distribution channel
performs two functions: direct distribution of retail products and support BIC to
exploit enterprise customers
2.2.2.2 Bancassurance distribution channel development at ABIC
ABIC bancassurance distribution channel is the most closely cooperation
operating in Vietnam ABIC contracts agent with Agribank branches and creates
a system of general agences including all nation- wide Agribank branches
Members participating in the general agencies are mainly credit officers and leaders of Agribank branches ABIC and general agencies are directly supervised and operated by Bancassurance leading board at the Steering Committee of Agribank to its members
2.2.2.3 Bancassurance distribution channel development at Bao Ngan
Bao Ngan established agency relations with the whole of 147 Vietinbank branches covering the country There are currently over 400 staff at managing level and over 3000 people who are mainly Vietinbank credit officers trained and issued Bao Ngan certificates In bancassurance distribution channels model between Vietinbank and Bao Ngan, in customer organizations require complex insurance assets cases, the exploitation are transferred to Bao Ngan staff with the information provided Vietinbank The level of commitment between Vietinbank and Bao Ngan is based on agency contracts and not really tight and articulate
2.2.2.4 Development and distribution channels at VLCI and VietinAviva
VLCI and VietinAviva develop distribution network through bancassurance channel and focus on exploiting the bank internal customers, they haven’t reached the bank external customers VCLI direct agents are often exploited by bank credit officers Collaborative process involving two parts is the customer relations department (customer management of Seabank Vietcombankk) and Debt Management Department of Banking to monitor and ensure the bank benefits Vietcombank and Seabank play a key role in this connection, VCLI plays the technical, insurance claims evaluation and decision-making level insurance policy role
VietinAviva has just been operated and gradually built and set up At present, sources of VietinAviva agents are meeting difficulties due to the legal provisions relating to Bao Ngan life and non -life bancassurance agency codes Just as in the case of Bao Ngan, Vietinbank commitment to VietinAviva is still entirely based on the contract between the two parties and there is no direct supervising linkage like Agribank case
2.3 The results of the activities of the Insurance Companies under Vietnamese State Commercial Banks
2.3.1 The result of the Insurance Companies in non-life insurance field
a Results of BIC activities
Trang 8BIC is in top ten enterprises with the largest collection of original
coverage insurance on Vietnam's insurance market BIC profit before tax
maintains annual growth, reaching 110.32 billion in 2012 increased 10%
compared to 2011 ROE of BIC increased steadily and reached 12.8% in 2012
Business results of the bancassurance distribution channel indicates the
channel's revenue has increased over the years with a growth rate higher than the
overall growth rate of the original premium revenue of BIC In 2008, BIC
bancassurance sales reached 23 billion, with a density of 8.53% of the total
direct premium revenue in 2012, the bancassurance revenue reached 144.72
billion, accounting for 21.59% by total orginal premium revenue growth
bancassurance premiums growth is always over 50% However, with the
advantage of being dominated by BIDV bancassurance, result of bancassurance
activities also shows that this result does not correspond with existing and
potential advantages that BIDV gives BIC in general and bancassurance
distribution channel in particular
b Results of operations ABIC
Compared with BIC and Bao Ngan, ABIC is under the bank with the
widest retail market banking services system on banking service market, It has
the advantage in developing retail products, ABIC has taken advantage of a
bancassurance ABIC business results have improved considerably when the
insurance market steadily increased from year to year from 0.20% in 2007 to 2%
in 2012 Revenue increased premiums from 16 billion in 2007 (ABIC
established in May 6/2006) to 455 billion in 2012
Existing bancassurance channel is ABIC main channel with the
proportion of channel sales tending to increase, the proportion of revenue from
bancassurance channel was only 38.5 % in 2008, then in 2011 this proportion
was increased to 72.72 % and 85 % in 2012 with an increase from 51 in 2008 to
387 billion VND billion in 2012 Growth of bancassurance sales peaked with the
corresponding ratio reached 214.72 % in 2009, 45.81% in 2011 and 30.74% in
2012 According to ABIC statistics,in 2012- revenue from Credit security
products reached 268 billion accounted for approximately 59% of direct
premium revenue [21]
c Results of operations of Bao Ngan
Bao Ngan shift from bancassurance venture into single ownership model,
it also has thrived for Bao Ngan Before 2008, Bao Ngan original premium
revenue was just over 20 billion with growth of about 10%, since 2009 Bao Ngan original premium revenue has improved markedly,the original insurance premium revenue reached 67.354 billion in 2009, 130.760 billion in 2010, 151.412 in 2011 and 121.061 billion billion in 2012
Overall, results of Bao Ngan insurance operations improves and speeds up certain development compared with the venture previous stage and Bao Ngan against itself over the years However, if compared with other bancassurance at the same advantages, the results of Bao Ngan Insurance Business is not really good
2.3.2 Results of the bancassurance activities in the life insurance field
VCLI and VietinAviva have disadvantage because they were founded later and at a time when Vietnam's economy fell into financial crisis and economic downturn VCLI business results - according to the Vietnam Insurance Association from 2009 to 2012, and 2012 began seeing results for mixed life insurance products with the number of 107 exploiting contracts, the insured amount reached 8,133 million and first year premium revenue reached
609 million For death period life insurance products, VCLI business results has improved significantly, if 2009 began exploiting operations with 117 death period life insurance products, in 2010, the number of new exploiting contracts reached 3,540 contracts and 6,728 contracts remain in force, in 2012 the number
of new exploiting contracts reached 28 380 contracts and annuity contracts is 32
332 contracts VietinAviva actually started going into operation in 2012, the exploiting results showed that VietinAviva has focused on exploiting mixed insurance products with some new exploiting contracts reached at1,079 contracts and the amount of insurance operators reached 108 129 million contracts, insurance contracts to exploit death period life insurance products in
2012 was only 276 contracts with the insurance money reached at 70 780 million
2.4 Assessment of the status of the bancassurance activities of the Insurance Companies under Vietnamese State Commercial Banks
2.4.1 Results
The selection of integrated partners or banks’bancassurance model is appropriate Basically, bancassurance model which commercial state banks select is reasonable and makes significant contribution to the operation of the bancassurance
Trang 9- Revenue and market share:
In the field of non-life insurance: In three bancassurance, ABIC is now
improved market share and growth is 11.71% higher than the overall growth of
the market In comparison to 2008 - the year when BIC and ABIC started
operational stability after establishing or model shift with 2012, revenue and
position of the bancassurance can be seen with significantly improvement:
business ABIC revenues increased from 16,538 million to 454 960 million with
a market share increased from 1.2% to 2 %; BIC 's sales increased from 147,922
million to 670.37 million, the market share increased from 2.43% to 2.95% Bao
Ngan in particular, in 2008 it operated as a joint venture, sales of bank storage is
25 599 million in 2008 with a market share of 0.22 % After switching model of
the business results Bao Ngan changed markedly revenue in 2009 reached 57
654 million compared to 23 823 million in 2008 's 2012 revenue reached 121
061 million short statement to the share increased from 0.22% in 2008 to 0.53%
in 2012
In the life insurance sector, both VCLI and VietinAviva are two insurers
licensed and put into new operation on the market, VCLI has 3 years of
operation, VietinAviva has 1 year of operation VietinAvia and VCLI’s market
share has been small
VCLI is one of five life insurance companies coverage the largest exploiting
amounts insurance and death period life insurance premiums in the market in
2012 with market share of exploiting insurance money reached 3.17% and the
amount insurance operators reached 5869.73 billion VCLI has employed a
relatively good position to exploit a bancassurance market potential at
Vietcombank and Seabank
VietinAvia case is more complicated than VCLI Although it has achieved
certain results in exploitation activities with a new exploiting premiums market
share reached 0.21 % and the amount of new exploiting insurance to reach 0.1%
in 2012 However, VietinAvia position is different from other bancassurance on
the market because they are under Vietinbank and have to the internal
competition with Bao Ngan in developing death period life insurance products
- Profitability and contribution to the parent bank
Commissions and expenses to support the risk assessment that the
bancassurance pay for the parent bank is still small compared with income of
banking operation but it also shows the potential to develop insurance services for the bank when these incomes have increased over the years
Trang 10- Product Development
Except Bao Ngan, four existing bancassurance are developing insurance
products attacted to bank products to exploit the advantages brought by the
parent bank The credit insurance products are effective and highly structured
sales in total sales of bancassurance
- Development of distribution channels
It can be estimated that the bancassurance as ABIC, BIC, VCLI has good
experience in choosing partners and boost sales supervision of bancassurance
models of banks, financial groups in the world
2.4.2 Limitations and causes
First, the relationship between the parent bank and the insurers is not really
tight leading to the exploitation of bancassurance distribution channels in the
potential market customers of the parent bank is not high
Second, the number of integrated products is limited, coverage of the product
is still very narrow so it limits customer choice
Third, distribution channel through the bank is not really effective
Fourth, financial capability, insurance capacity was weak, quality customer
service is not really high in some Bancassurance and general agents for the
Bank's branches
Fifth, except for the case of ABIC, BIC, the remaining bancassurance has not
taken advantage of support from the parent group
Sixth, the brands of bancassurance is still very famous because the insurers
are new on the market
Practical survey results show that in the samples, there are 82.2% of bank
customers have been insured This indicates the insurance needs of bank
customers is great Referring to the issue of the quality and results of the
distribution channels, customers tend to choose the method by participating
insurance employees achieve the highest rate (43.7% in the number of customers
participating insurance) Second and third are forms of insurance through the
bank staff (29.7%) and the insured person at the insurance company but through
the introduction of bank staff (27, 8%) Survey results also showed that the
quality of the current service coverage reached only above average
Using Multinominal Logistic model, the analysis results show that: In order
to enhance the level of service quality evaluation from the low level (level 5) to
the good level (level 1) and the not so good level (level 2), the role of banker attitude when introducing products makes sense
In addition to the limitations above analyzed, the development of bancassurance is also influenced by the objective reasons of economy, such as insufficiency of the legal system to adjust Bancassurance activities in Vietnam; The lack of trust and subjective customer; The fluctuation of the economy due to the effects of financial crisis in the U.S A in 2008 on Vietnam's insurance market