Solutions for improving the competitiveness of posts & tel. joint stock insurance company = Một số giải pháp nâng cao năng lực cạnh tranh của Tổng Công ty Cổ phần Bảo hiểm Bưu điện

TABLE OF CONTENTS ACKNOWLEDGEMENT i ABSTRACT ii TÓM TẮT iv TABLE OF CONTENTS vi LIST OF TABLES ix LIST OF FIGURES x LIST OF DIAGRAM x INTRODUCTION CHAPTER 1: BASIC ARGUMENTS ON COMPETITIVENESS IN NON-LIFE INSURANCE BUSINESS 1.1 Concept and feature of insurance business activity 1.1.1 Concept on insurance business activity 1.1.2 Feature of insurance business activity 1.2 Non-life insurance business activity 1.2.1 Concept on non-life insurance business 1.2.2 Operation content of non-life insurance enterprise 1.2.3 Criteria for evaluating the product‟s competitiveness 16 1.2.4 Necessity to improve competitiveness of product in international economic integration condition 21 1.3 Overview of non-life insurance market in 2011 23 1.4 Competitiveness of non-life insurance enterprise 24 1.4.1 Competitiveness and competitiveness forms 24 1.4.2 Competitiveness of non-life insurance enterprise 27 vi 1.4.3 Factors reflecting competitiveness of non-life insurance enterprise 31 1.4.4 Some factors affecting to competitiveness of non-life insurance enterprise 36 CHAPTER 2: REAL SITUATION OF COMPETITIVENESS OF POSTS & TEL JOINT - STOCK INSURANCE COMPANY (PTI) 38 2.1 Introduction about Posts & Tel Joint - Stock Insurance Company (PTI) 38 2.1.1 Introduction about the Company 38 2.1.2 Apparatus organization of PTI 41 2.2 Some features on competitiveness situation in non-life insurance market in Vietnam at present 45 2.2.1 Number of insurance enterprises: 45 2.2.2 Market share of non-life insurance enterprises 48 2.2.3 Insurance products to be deployed 50 2.2.4 Distribution system of non-life insurance enterprises 51 2.2.5 Financial resources of enterprise 51 2.3 Real situation on competitiveness of PTI 54 2.3.1 Financial 54 2.3.2 Product of PTI 57 2.3.3 Distribution system 62 2.3.4 Commercial partner 65 2.3.5 Human resources 65 2.3.6 Product price, assessment quality and compensation settlement 68 vii 2.4 Operation result, position of PTI in the market 69 2.4.1 Result 69 2.4.2 Market share of PTI over the years 74 CHAPTER 3: SOME SOLUTIONS AIMED AT IMPROVING COMPETITIVENESS OF PTI NON-LIFE INSURANCE ENTERPRISE 78 3.1 Some recommendations for the State to improve the competitiveness on non-life insurance enterprises 78 3.2 Solutions for PTI insurance enterprise aimed at improving competitiveness in the market 79 CONCLUSION 100 REFERENCES 101 viii LIST OF TABLES No Subject Page Table List of non-life insurance enterprises operating in Vietnam insurance market 46 Table Revenue of non-life insurance premiums in the entire market of Vietnam 48 Table Market share of some non-life insurance enterprises (period 2009-2011) 49 Table Charter capital of some non-life insurance enterprises (2007-2011) 52 Table Process of increasing charter capital of PTI 53 Table List of shareholder of PTI 54 Table Total provident fund of PTI (period 2009 - 2011) 56 Table Revenue structure of PTI under operations (period of 2007- 2011) 60 Table Statistic table of agents in the period 2007 - 2011 63 Table 10 Labor structure under knowledge level 66 Table 11 Original insurance revenue in the period 2007-2011 69 Table 12 Insurance revenue of PTI under each operations (period 2007 – 2011) 70 Table 13 Revenue from agreeing reinsurance over the years (period 2007-2011) 71 Table 14 Total investment value of PTI over the years 72 Table 15 Market share of PTI in Vietnam insurance market (period 2007 - 2011) 74 ix LIST OF FIGURES No Subject Page Figure Market share of non-life insurance Companies in 2011 75 Figure Market share of original insurance Companies in technical 77 operations (2011) LIST OF DIAGRAM Organization diagram of PTI 41 x INTRODUCTION 1.1 Necessity of the thesis Insurance market is considered as promising market that attracks most financial investment co-operation Revenue from non-life premiums increased over the years, and accounted for a large proportion of the total revenue of insurance in the entire market Besides, insurance products are easy to copy The market for non-life insurance is a promised land which the companies are directing towards Therefore, it can be seen that each year the companies entering the non-life insurance market are increasing in number The increasing number of insurance companies will lead to the risk of reducing the market shares of the insurance companies, non-life insurance market of Vietnam will compete more and more severely and violently This matter will require every business need to form a specific business strategy suitable with each specific period, to enhance their capacity in the market, as well as in front of the competitors, to not be “moved” out of the non-life insurance market which is very eventful at present In order to develop stably and gain the expected market share, PTI should strengthen their competitive capacity Within the contend of this thesis, the author propose a number of recommendations in order to increase PTI competitive capacity 1.2 Research aims and objectives The aim of this thesis is to create a competitive plan for PTI with a numbers of recommendations in order to enhance the competitive capacity of PTI in non-life insurance market The ulitmate aim of this thesis is to make PTI become more competitive in term of more efficiency of using finance resource, human resource, brand name exploited and so on In order to achieve that target, there are some objectives that should be reached:  Throughly research current theories of competitive theory including: Non-life insurance activities, competitiveness capacity of non-life insurance company, competitiveness forms and the necessity to improve competitive capacity  Analysis the real situation of competitiveness capacity of PTI and point out the position of the company in the market  Recommendations to PTI aimed at improving competitiveness capacitiy of PTI‟s non-life insurance company 1.3 Research questions In order to give recommendations to improve PTI competitiveness capacity, the thesis should finding answers for the following questions:  Why PTI need to improve their competitiveness capacity?  How to improve PTI‟s competitiveness capacity?  What are solutions for PTI to improve their competitiveness capacity? 1.4 Research methodology In the thesis, the author adopts statistic and analytical methods to identify the most suitable solution for PTI for improving their effectiveness in administrative and business activities in order to improve competitiveness capacity Both primary and secondary data used in this thesis to analyze current situation of competitiveness capacity of PTI Based on the theories of PTI and the author‟s own judment, the author presents the operation result and the position of PTI in the market and gives suggestions to improve PTI‟s competitiveness capacity 1.5 Scope of the research The thesis aims to find solutions to improve competitiveness capacity of PIT The thesis focus on:  Study the PTI business result in field of capital, investement activities and the main business activities in non-life insurance  Give suggestions to improve PTI‟s competitiveness capacity 1.6 Significant of the research The thesis has both theoretical and realistic significance The thesis provides a review of competitive theories that cover many aspects of business activities including: cost management, human resource administration, finance management and communication The thesis also provides the recommendations that are applicable to the curren competitive activities of PTI CHAPTER 1: BASIC ARGUMENTS ON COMPETITIVENESS IN NON-LIFE INSURANCE BUSINESS 1.1 Concept and feature of insurance business activity 1.1.1 Concept on insurance business activity Each individual or organization has demand on the safety; therefore, they always find way to protect them, their relatives and the assets they are having in the face of the upheavals in the life which can happen at any time Being aware of this issue, people from long time ago organized many forms having features similar as insurance Insurance really came out into society for the first time in 1942, (with marine insurance company) Up to now, insurance has developed very strongly and becomes popular financial activity all over the world It can be understood that insurance business is the activity of the insurance enterprise aimed at revenue-earning, thereby insurance enterprise accepts the risk of the insurance buyer on the basis that the buyer pays the premium so that the enterprise pays the insured amount to the beneficiary or compensates the insurance buyer as happening the insured events This concept expresses clearly the following contents: Firstly: Insurance business has the economic and profit purpose, this is the purpose which the insurance enterprises direct toward Only by gaining the profit, can the insurance enterprise exist and develop in the condition of the market economy Profit helps the enterprise pay off to the individuals and organizations and provide capital for itself High profit level also helps the enterprise maintain the reserve fund source which is big enough, limit the assignment and re-insurance and have condition for improving the income level for personnel Besides the profit objective, the insurance enterprise must meet the demand of the customers, help the customers stabilize their life and business production as having sudden loss and damage happened to them, at the same time, the insurance enterprise is responsible for implementing fully the obligations to the State Besides, the appearance of the insurance business form also contributes to guaranteeing the safety and stability for the society to develop stably Secondly: The nature of the insurance business activity is that insurance enterprises accept the risk which is transferred to them by insured party; that means they accept to pay the insured amount or compensate as happening the insured event On the contrary, the insurance enterprise will collect the premium, this revenue source will form the reserve fund, compensation fund, pay off other related and profitable insurance costs However, the insurance enterprise only accepts the insurance for the risks which will happen in the future and have unexpected, unreliable nature and not depend on subjective desire of the person insured… The specific characteristics of the insured risk express the scope in which the insurers must determine and select This thing also affects partly to the business activity of the insurance enterprise Thirdly: Insurance business is often attached to the reinsurance business activity Reinsurance business is the activity of the insurance enterprise aimed at creating profit, thereby the insurance enterprise receives another premium amount to undertake to compensate for the responsibility to be insured Besides, reinsurance business also helps the insurance enterprise expand the relations with commercial partners, take advantage of the capital resources, experience to grasp more information, support the training of officers… 1.1.2 Feature of insurance business activity Insurance business is the special service business sector; it has the following ... In the view of insurance business, the activity of agreeing the reinsurance is a form of selling the insurance After agreeing the reinsurance, the person agreeing the reinsurance can transfer the. .. SITUATION OF COMPETITIVENESS OF POSTS & TEL JOINT - STOCK INSURANCE COMPANY (PTI) 38 2.1 Introduction about Posts & Tel Joint - Stock Insurance Company (PTI) 38 2.1.1 Introduction about the Company. .. the business activity of the insurance enterprise Thirdly: Insurance business is often attached to the reinsurance business activity Reinsurance business is the activity of the insurance enterprise