Thông tin tài liệu
FINDING MARKET OPPORTUNITIES FOR BANCASSURANCE IN VIETNAM
In Partial Fulfillment of the Requirements of the Degree of
MASTER OF BUSINESS ADMINISTRATION
In International business
By
Mr: Nguyen Ngoc Noi
ID: MBA03024
International University - Vietnam National University HCMC
February 2013
FINDING MARKET OPPORTUNITIES FOR BANCASSURANCE IN VIETNAM
In Partial Fulfillment of the Requirements of the Degree of
MASTER OF BUSINESS ADMINISTRATION
In International business
by
Mr: Nguyen Ngoc Noi
ID: MBA03024
International University - Vietnam National University HCMC
February 2013
Under the guidance and approval of the committee, and approved by all its members, this
thesis has been accepted in partial fulfillment of the requirements for the degree.
Approved:
---------------------------------------------Chairperson
--------------------------------------------Committee member
---------------------------------------------Committee member
--------------------------------------------Committee member
---------------------------------------------Committee member
--------------------------------------------Committee member
Acknowledge
First of all, I would like to send my sincere thanks to all teachers in International University –
Ho Chi Minh National University where taught and supported me during this MBA course.
Especially, the teachers are at school of Business administration.
Many sincere thanks to Dr. Nguyen Kiem Than who read and advised me useful information
to completed this dissertation
Thanks to all respondents that helped me to fill the questionnaires, your answers were a key
source of information useful to me complete this thesis.
Thanks to all of you in MBA03 class who shared, supported and provided information useful
in during learning.
Many lovely thanks to my family, especially many kisses to my wife and daughter have
encouraged and gave me power in this course and my working.
i
Plagiarism Statements
I would like to declare that, apart from the acknowledged references, this thesis either
does not use language, ideas, or other original material from anyone; or has not been
previously submitted to any other educational and research programs or institutions. I fully
understand that any writings in this thesis contradicted to the above statement will
automatically lead to the rejection from the MBA program at the International University –
Vietnam National University Ho Chi Minh City.
ii
Copyright Statement
This copy of the thesis has been supplied on condition that anyone who consults it is
understood to recognize that its copyright rests with its author and that no quotation from the
thesis and no information derived from it may be published without the author’s prior
consent.
© Nguyen Ngoc Noi/ MBA03024/2010-2012
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Table of Contents
Acknowledge .................................................................................................................... i
Plagiarism Statements .................................................................................................... ii
Copyright Statement ...................................................................................................... iii
Chapter1: Introduction .................................................................................................. 1
1.1 Overview of Vietnam insurance sector ..................................................................... 1
1.1.1 Vietnam Insurance sector ...................................................................................... 1
1.1.2 Vietnam entered WTO and impacts to Insurance sector ......................................... 2
1.1.3 Market potential .................................................................................................... 2
1.2 Statement of the problem .......................................................................................... 3
1.3. Research objectives and questions ........................................................................... 5
1.4 Research methodology ............................................................................................. 6
1.5 Benefits of this study ................................................................................................ 6
1.6 Structure of the research ......................................................................................... 6
1.7 Chapter summary ...................................................................................................... 7
Chapter 2: Literature review ......................................................................................... 8
2.1 Concepts ..................................................................................................................... 8
2.1.1. Bancassurance definitions..................................................................................... 8
2.1.2 Potential customer demand identification .............................................................. 8
2.1.3 Market opportunities identification ....................................................................... 8
2.2. Theories of Bancassurance ....................................................................................... 9
2.2.1 A. Karunagaran (2006) to Bancassurance “Feasibility strategy for the Banks
concluded that the success of bancassurance” ................................................................. 9
2.2.2 Chiang Ku Fan, Yu Hsuang Lee (2010) “Factors to success bancassurance” .......... 9
2.2.3 G.S. Popli, Rao, D.N “ Prospects and challenges for selling insurance product
through the banks” ....................................................................................................... 10
2.2.4 Konstantinos Lymberopoulos et al(2004) “ Opportunities for banks to cross sell
insurance products in Greece” ...................................................................................... 10
2.2.5 Other theories ...................................................................................................... 10
2.3. Chapter summary ................................................................................................... 13
Chapter 3: Research methodology ............................................................................... 14
3.1 Research process ...................................................................................................... 14
iv
3.2. Research model and hypothesis .............................................................................. 15
3.2.1 Research model ................................................................................................... 15
3.2.2. Research hypothesis ........................................................................................... 17
3.3. Measurement and questionnaire design................................................................. 17
3.3.1 Questionnaire design ........................................................................................... 17
3.3.2 Pilot study ........................................................................................................... 20
3.3.3 Finalize questionnaire .......................................................................................... 21
3.4. Sample size and data collection method ................................................................. 21
3.3.1 Sample size ......................................................................................................... 21
3.3.2 Data collection method ........................................................................................ 21
3.5. Data analysis method .............................................................................................. 21
3.5.1 Data coding ......................................................................................................... 21
3.5.2 Analysis method .................................................................................................. 23
3.6. Chapter summary ................................................................................................... 24
Chapter 4: Data analysis and finding result ................................................................ 25
4.1. Sample description .................................................................................................. 25
4.2 Exploring the current use of insurance products and bancassurance services ..... 26
4.3 Profile of customers who have already used their bank in order to buy an
insurance product .......................................................................................................... 27
4.4 Reasons why customers would like to buy insurance products from the banks .... 28
4.5 Source of information where customer in order to buy insurance products ......... 29
4.6. Profile of customers aware that their bank offers insurance products ................. 30
4.7 Willingness to buy additional insurance product from banks ............................... 31
4.8 Exploring customer’s attitude towards Trustworthiness, competence and service
expertise of banks and insurance agent. ....................................................................... 32
4.8.1 Mean scores ........................................................................................................ 32
4.8.3 Factor analysis..................................................................................................... 34
4.9 Compare means ....................................................................................................... 38
4.9.1 One way Anova ................................................................................................... 38
4.9.2. Independent sample T test .................................................................................. 39
4.10. Chapter summary ................................................................................................. 40
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Chapter 5: Conclusion and recommendation .............................................................. 41
5.1. Research finding and discussion............................................................................. 41
5.2 Recommendation ..................................................................................................... 42
5.3 Limitation of the study ............................................................................................. 43
5.4 Further research ....................................................................................................... 44
5.5 Chapter summary .................................................................................................... 45
References ..................................................................................................................... 46
Appendix ....................................................................................................................... 48
Appendix 1: Survey questionnaires .............................................................................. 48
Appendix 2: Crosstabulation....................................................................................... 51
Appendix 3: Descriptive statistic ................................................................................... 53
Appendix 4: Result of reliability test ............................................................................ 54
Appendix 5: Result of Factor Analysis (EFA) .............................................................. 56
Appendix 6: One way Anova ......................................................................................... 87
Appendix 7: Result of Independent T test .................................................................... 94
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List of Tables
Table 1: The factors in study customer’s attitude ................................................................. 16
Table 2: The questionnaires included main points: .............................................................. 17
Table 3: Coding Questions .................................................................................................. 22
Table 4: Respondent’s profile .............................................................................................. 25
Table 5: Current use of insurance products .......................................................................... 26
Table 6: Customers who used their banks to in order insurance products from the bank
products .............................................................................................................................. 27
Table 7: Reasons which customer would like to buy insurance from banks ......................... 28
Table 8: Sources of information that banks provide insurance to customers ......................... 29
Table 9: Profile of customers aware that their bank offers insurance products ..................... 30
Table 10: Willingness to buy additional insurance product from banks ................................ 31
Table 11: Ranking customer’s attitude to trust, competence, service expertise of Banks and
Insurance companies based on mean scores ......................................................................... 33
Table 12: Descriptive statistics ............................................................................................ 34
Table 13: Kaiser-Meyer-Olkin(KMO) ................................................................................. 35
Table 14: Total variance explained ...................................................................................... 35
Table 15: Rotated Component Matrix(a) ............................................................................. 36
Table 16: Renamed in study ............................................................................................... 37
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List of Figures
Figure 1: Process of this study ........................................................................................ 14
Figure 2: Bancassurance opportunities model of O.C.W Jongeneel ................................. 15
Figure 3: Conceptual model ............................................................................................ 16
Figure 4: Current use of insurance products .................................................................... 27
Figure 5: Reasons which customer would like to buy insurance from banks .................... 29
Figure 6: Sources of information that banks provide insurance to customers ................... 30
Figure 7: Willingness to buy additional insurance product from banks .......................... 32
Figure 8: The model after modified from finding in EFA for customer’s attitude ............ 37
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Abstract
The main objectives of this study to finding market opportunities for bancassurance in
Vietnam. Identify whether or not there are opportunities to sell insurance product through the
banks. Investigating the insurance product that have potential to cross selling, examine
customer’s profile to identify potential customer demand, finding the reason why customers
would like to buy insurance from the banks and awareness to offers insurance product from
banks. Customer’s attitude also analysis basing on the result to market segment.
Questionnaires designed and completed by 206 customers who have been transaction with the
banks.
Market potential is a key factor for developing both life and nonlife insurance. Vietnamese’s
income achieved average as world’s rank. Traditional distributions are employee, agent,
broker that have huge revenue in insurance area. However, Bancassurace has into Vietnam in
nearly years as a new distribution in Vietnam although this distribution was developed in
Europe for a long time ago. Developing stable in insurance and application bancassurance is
a key factor in this sector. This is a distribution very potential to increase insurance revenue,
with the purpose to develop bancassurance that author studied distribution channel through
survey, conclusion, recommendations to implications to managers and ideas to further
research in future.
Key words: Banks, Insurers, Opportunities, Bancassurance, Cross selling, Vietnam
ix
x
Chapter1: Introduction
1.1 Overview of Vietnam insurance sector
1.1.1 Vietnam Insurance sector
Vietnam insurance market is develop very rapidly in year nearly, non-life insurance has
increase 25% in 2011, estimated 21,500 billion dong and life insurance has increase
16,2% in 2011, estimated 16,025 billion dong. However Bancassurance is five percent in
total insurance premium (Association of Vietnamese Insurers). Bancasurance has
developed in Europe for many decades. In france for example total premium is over 70%
through distribution banking, 10% in Malaysia.
Insurance penetration (premium as a % of GDP) in 2011, Vietnam has only 1.5%,
including nonlife insurance 0.9% and life insurance 0.7%. comparison with Singapore
5.9%, Thailand 4.4%, Malaysia 5.1% and Indonesia 1.7% (source Sigma No.3/2012 of
Swiss Re). Vietnam has population over 88,8 million people but Insurance penetration is
lower than other Asia south country but with increasingly in nearly year, Vietnam
Insurance sector has a lot of opportunity to develop and finding new distribution is a
necessary for insurance in currently and future.
Vietnam Insurance Companies have arrangement with the Banks to sales insurance
product to the bank’s customers. It is the first step of the bancassurance. Because the
Insurers and the banks do not more things to developing this arrangement. Some banks
are open or joint shareholder in insurance companies to do Bancassurance (website of
insures):
Bank for investment and development of Vietnam(BIDV) has Bank for Investment and
Development of Vietnam Insurance Joint Stock Corporation (BIC). BIC officially began
operating under the new brand name from January 1 2006 and Chartered capital: 660
billion dong. BIC is new brand which BIDV bought the shares of the QBE Insurance
Group (Australia) QBE- BIDV joint venture established in Vietnam in 1999.
Agribank has Agricuture Bank Insurance Joint Stock Corporation. It operation on August
08, 2007 and chapter capital: 380 billion dong and Bao Viet Insurance Joint stock with
Bao Viet bank to do Bancassurance
1
1.1.2 Vietnam entered WTO and impacts to Insurance sector
The insurance market opening commitments of Vietnam in WTO, oversea insurers
allowed providing insurance services to insurance companies with capital and foreigners
in Vietnam. In addition they also offer reinsurance services, international transportation,
insurance brokerage, consulting, computing, risk assessment and claim settlement for the
Vietnam insurance market, insurance companies 100% foreigners is not required for
compulsory insurance services to 01/01/2008, the remove of restrictions.
However, Vietnam insurance market has a lot opportunity to develop insurance sector.
For example, insurance companies have increase rapidly, only 37 insurance sector
companies in 2006, until 2010 has 50 companies (Source: Association of Vietnamese
Insurers), claim settlement is more important to insurance companies because competition
is a factor to improve quality service and increase benefits to customer.
Diversification of distribution, outside distribution channel, cross selling through banks,
financial companies have more interested to opening insurance sector for nonlife
insurance and life insurance. Local insurance companies have updated IT in management
and investment to give benefit to customers and competition with insurance 100% of
foreigners. Vietnam insurance sector is expected to witness great competition and growth
opportunities with innovative product, improve quality service and training employees,
expanding distribution channels and growth economic opportunities.
1.1.3 Market potential
The insurance companies have completed the route to enough legal capital 300 billion
USD for a non-life insurance, 600 billion USD for a life insurance company and change
state insurance company into a joint stock company successfully.
Non-life insurance has 880,928 for new policies, Premium per capita in USD has 1200 in
2011. it is higher than 2010 (1,160 USD) (source Sigma No.3/2012 of Swiss Re).
Vietnam's population has 88,8 million people. It is a huge potential for growth insurance,
insurance demand is increasing both personal and business. Vietnam has young
population and economic development those factors to market opportunities. Population
was insured under 10%, the cost of insurance in developing countries account for 10-15%
of GDP, in Vietnam, this cost is only 2% of the GDP
2
Market opportunities have come from the factors that a part of population is not insured,
income levels across age group, industry sector take workforce in this sector increasing,
economic development create customer demand in healthcare and relate services.
Vietnam’s population estimated 88,8 million in 2011 (source Sigma No.3/2012 of Swiss
Re) but insured population estimated under 10% was covered by nonlife insurance and
life insurance
According to Law on Insurance business issued by National Assembly of the Socialist
Republic of Vietnam, Law No. 24/2000/QH 10, Compulsory insurance is a line of
insurance with respect to which the laws provide for the terms and conditions, premium
rates and the minimum sum insured that have a binding effect on both the insurance buyer
and the insurer. For example, Motor owner’s civil liability insurance; aviation carrier’s
civil liability insurance; Professional indemnity insurance against risks arising from
provision of legal consulting services; Professional indemnity insurance for insurance
brokers; Fire and explosion insurance. It is an market opportunities growth in the current
and future because business is related the bank to get the loan and the bank can become a
provider insurance products and services.
1.2 Statement of the problem
The insurance market is developing strongly in Vietnam and entering in the world
economy. The financial companies is competition very strictly, they are finding new
distribution channel due to increasing competitive. Bancassurance is a distribution
channel to lead to price competition, reducing costs, high quality service. It is role
important in insurance products distribution with competitive advantage
Vietnam has become the 150th world trade organization member on 11 January 2007. it is
a new opportunities for insurance and banking area and more prospect to additional
income for both insurance and banking.
Bancassurance has grown in many countries in the world and developed in European for
many decades. The Economic development is a factor that Bancassurance has been in the
market. Bancasurance is an affective distribution channel in insurance. It is simplest the
distribution of insurance products and services through a bank’s distribution channel.
There are many distribution channels for the services of insurance as follows: Firstly,
Insurance company sale of insurance product indirectly, without intermediaries, using
direct marketing and company’s own sale forces employees. Secondly, Insurance
3
company sale of product through intermediaries who represent several providers to sell of
products and services, it based on contract agent, brokers who represent the interest of
Insurers
In globalization, technological innovation and completion have create Bancassunce to
adapt new development and increase benefits to customers and insurance company
Bancasurance is arrangement between Insurance companies and the banks that it is base
on the same sources of customers to provide banking and insurance products
Non-life Bancassurance only become more popular in the early 1990s. the maily property
products distributed through the banks in some Western European markets and especially
in France, non-life Bancassurance penetration has risen incrementaly from 4% in 1994 to
9% in 2006 (Swiss Ree- Sigma No.5/2007, P.35)
Bancassurance in Vietnam is not strong development. Although insurance company has
apply it in their sales channel. In this research will deal with development of
bancassurane for nonlife insurance in Vietnam, the implementation models, experiences,
advantages and disadvantages, the benefit from this distribution channel for banks,
insurance companies and customers themselves, a stable development in the competition
market.
Bancasurance’s strategy focus on the minimize cost, market segment and customer, create
the insurance products specially for this segment, benefit to Insurer, Bank and customer
Minimize costs but maximize coverage: the bank sale insurance product to customer
directly. The Insurer must train for the bank’s employee who consult and sale insurance
product before they supply insurance to customer. The Insurer will not lost much time
and cost for example sales forces, finding new customer, competition. Low cost but
Insurer will supply more coverage to customer to attract them.
Market segment and customer target: Insurer will be arrangement and selection the bank
with an appropriate customer
Create the insurance product specially for this segment: non-life insurance have more
than thousand product however Insurer can focus develop products specifically and adapt
the customer need and want. The insurance product must coverage the risk that the bank
wants to risk management.
4
Benefits to Insurers, Banks and customers: Insurers base on the bank distribution network
largely to increasing their revenue through banks and use the same customer base,
economy in sales cost; the banks will earn net income from Insurers and increasing value
to customer, strengthening customer relationship, and manpower utilization; customers
will insured with reasonable premium and security for their property or health that bank
employee high skilled and trained to
cross selling insurance products, one stop
shopping, customers are not much time to select Insurer because the banks have agreed
already with the good insurers.
1.3. Research objectives and questions
Examine whether or not Vietnam retail bank customers are aware of insurance selling
through bank branch networks and customers are willing to purchase from their banks
Identify the reasons that customers would buy insurance from the banks and popular
insurance products
Investigate the factors that affect customer’s attitudes to banks and insurance companies
in relation to the provision of insurance products
Using test potential relationships between the factors and customers’ demographic
characteristics, awareness and level in use of insurance products
To adaptation the objectives, the study must answered as follow research questions:
- What insurance policies do customers currently hold?
- What are the reasons that customers would like to buy insurance products from the
banks?
- What is the level of customers’ awareness that their banks sell insurance products and
does this affect their willingness to buy?
- Which popular insurance products that customers would like to buy through the banks?
- Do customers feel the same about both kinds of financial service providers in terms of
trust, staff competence and service expertise? Are there specific factors that express
customers’ attitudes to purchasing insurance products from banks and insurance
companies? Which are these?
- What are the things which customers would prefer banks as their insurance providers?
5
1.4 Research methodology
The survey focused on potential customer response to new service provided by banks and
insurance companies and finding the customer demand that conducted with target
population comprising men and women have transactions with the bank or an insurance
company, the Pilot test will be used for this survey. The genders are different age groups
and over 21 years old with 206 samples that it is used for survey. This survey was done in
October and November 2012, the respondents were from Ho Chi Minh City.
1.5 Benefits of this study
The Insurers will be increasing their revenue through banks and it is a further good
distribution insurance product with reduce sales cost, employee, especially in risk
management because the insurers can be used the same customer base.
The banks will earn net income from Insurers and increasing value to customer. Diversify
product and services of the bank to satisfy increasing customer demand
Customer will insured with low premium and security for their property or health.
Customers are not much time to select Insurer because the banks have arrangement with
the good insurers. Customer conveniences in transaction by one stop shopping.
1.6 Structure of the research
CHAPTER 1: INTRODUCTION
CHAPTER 2: LITERATURE REVIEW
CHAPTER 3: RESEARCH METHODOLOGY
CHAPTER 4: DATA ANALYSIS AND FINDING RESULT
CHAPTER 5: CONCLUSION AND RECOMMEMDATION
REFERENCE
APPENDIX
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1.7 Chapter summary
General insurance sector and bancassurance in Vietnam to identify opportunities for
development the distribution channel in finding potential customer demand. Identify main
objectives and questions to conduct this study and based on them to way suitable study.
The result of the study benefits to banks, insurers and customers. Chapters in research
were logic and adapted purposed of research. The structure of research adapts the
objectives and questions to finding the result and recommendation in development
bancassurance in Vietnam.
Identify customer demand was an key factor to opportunities for bancassurance that used
primary data and secondary data to analyzing and result and recommendation for this
research.
7
Chapter 2: Literature review
2.1 Concepts
2.1.1. Bancassurance definitions
According to Cambridge dictionaries online define that “Bancasurance is a business
activity in which banks sell services and products usually sold by insurance companies”
The latest issue of Insights: Asia Pacific Insurance (May 2012) “The Bancassurance
channel, deferred pensions business and immediate annuities market could collectively
emerge as the key drivers of future growth for the insurance industry in the near term.”
Before a lot of researchers define Bancasurance. It is very useful to look at
http://www.investorwords.com. “Bancasurance is the sale of insurance and other similar
products through a bank. This can help the consumer in some situations; for example,
when a bank requires insurance for those receiving a mortgage loan that mean your
property must insured before you get the loan from the bank, the consumer could
purchase the insurance directly from the bank. Some critics feel that bancassurance gives
the bank too much control. The bank often offer to their customers a range of financial
services. It is insurance products from insurance company”.
2.1.2 Potential customer demand identification
Identify the customer demand to sell the product to customer market that is an important
to develop effective strategies, to increasing revenue from the potential customer.
Market potential is the total volume products and services that could be bought by
consumer in future. Market demand based on product, service and the situation of
economic, survey would be a tool to data collection and analyzing potential demand of
market.
2.1.3 Market opportunities identification
Christy Ryken (2012) “Marketing opportunities for business growth” mentioned the
Ansoff’s model to analysis market opportunities
Market penetration: existing products or services is a key factor to increasing sales
through current customer
Market development: Developing products or services to new market through new uses
and distribution for an existing product or service
8
Product development: Improving existing products or services to adapt market demand
Diversification: creating many products or service to adapt line commercial and personal
or familiar commercial
2.2. Theories of Bancassurance
2.2.1 A. Karunagaran (2006) to Bancassurance “Feasibility strategy for the
Banks concluded that the success of bancassurance”
The study of A. Karunagaran (2006) to bancassurance – A Feasibility strategy for the
Banks concluded that the success of bancassurance greatly hinges on banks ensuring
excellent customers relationship, therefore banks need to strive towards that direction.
Karunagaran has found the model for bancassurance in india “The model is best suited for
majority of banks including some major urban cooperative banks because neither there is
sharing of risk nor does it require huge investment in the form of infrastructure and yet
could be a good source of income”. There are some model for bancassurance that belong
to situation to apply successfully as Referal model; corporate agency; Insurance as fully
intergrated financial services/joint ventures. Each model will be relationship level
different.
The banks knew potential bancassurance in India. Bancassurance strategy was be “winwin situation” for all the parties involved there are banks, insurance companies and
customers.
2.2.2 Chiang Ku Fan, Yu Hsuang Lee (2010) “Factors to success bancassurance”
Chiang Ku Fan, Yu Hsuang Lee (2010) the study found key factors influencing
bancassurance success, identified through Delphy study, used sampling technique,
questionaires to conduct survey. based on analysis of key factors influencing
bancassurance success to improve the performance of bancassurance, focused on some
efforts invested in factors of lower administration cost per insurance policy, service
quality, shortime of product innovation, small subsidiary set up cost, provide lower
premium insurance to bank distribution and marketing partnership moved to factors such
as creation of integrated groups and joint ventures
9
2.2.3 G.S. Popli, Rao, D.N “ Prospects and challenges for selling insurance
product through the banks”
G.S. Poli, Rao, D.N studied Prospects and challenges for selling insurance product
through the banks in India, using questionnaires to survey the customers who have
transactions with the banks or an insurance company, the survey was administered
personally to 115 participants for both genders and different age group. The research has
result that customers said that they would prefer to buy insurance products from banks
due to existing personal relationship with banks, advertisements are one of the main
source of information for customers, bank employee trained to push business as well as.
The research is an indicator that growth potential for the insurance sector through cross
selling the bank. It is an potential for market insurance by widening the distribution
channels
Through this study found potential customer demand in New Delhi in India and factors
that influence to increasing sales for bancasurance.
2.2.4 Konstantinos Lymberopoulos et al(2004) “ Opportunities for banks to cross
sell insurance products in Greece”
In the study was identify whether or not there are opportunities for banks to cross selling
insurance product through branch network and result analysis has greatest opportunity
come from the fact that consumer awareness of offering insurance products from banks is
low in contrast to their willingness to use banks as insurance products providers. The
customers would like to buy insurance products where distributor was expertise in
insurance products. A survey conducted between November 2002 and January 2003 at
Athens with 720 respondents. SPSS software was used to analysis of frequencies, factor,
cross tabulation, one way anova and independent T test.
2.2.5 Other theories
The latest issue of Insights: Asia Pacific Insurance (May 2012) “The Bancassurance
channel, deferred pensions business and immediate annuities market could collectively
emerge as the key drivers of future growth for the insurance industry in the near term.”
Munich re group research Bancasurance in Practice (2001) mention definition in this
research “ bancasurance is the provision of insurance and banking products and services
through a common distribution channel and/or to the same client base” Bancassurance
make use of various distribution channels: Career agents; Special advisers; Salaried
agents; Bank employees; Corporate agencies and brokerage firms; Direct response.
10
This presentation was made in the CEO Summit of banks and insurance companies of
Asia Pacific countries in October 2001 in Singapore By Manoj Kumar, ACII (UK),
CPCU (USA), ARe (USA), ARM (USA), FIII (India). Said that the most significant
changes in the financial services sector over the past few years has been the growth and
development of bancassurance. Banking institutions and insurance companies have found
bancassurance to be an attractive and profitable complement to their existing activities.
The successes demonstrated by various bancassurance operations particularly in Europe
have triggered an avalanche of mergers and acquisitions across continents and efforts are
on to replicate the early success of bancassurance.
Distribution is the key issue in bancassurance and is closely linked to the regulatory
climate of the country. Over the years, regulatory barriers between banking and insurance
have diminished and has created a climate increasingly friendly to bancassurance. The
passage of Gramm-Leach Bliley Act of 1999 in US and IRDA Bill in India (2000) have
stimulated the growth of bancassurance by allowing use of multiple distribution channels.
O.C.W Jongeneel research Bancassurance, Financial services, Financial intermediation,
panel study, Europe (2011) mention Bancasurance as a way of financial conglomerations
has appealed widespread attention in the world of academic and business. The researcher
said that it is a one-stop-shop option for a larger range of financial products. Market
concentration predominantly had a positive impact on bancassurance proportions. Both
internet usages and banks branch density came out as determinants leading to contraction
of bancassurance proportion.
Marketing and distribution channels in Bancassurance (Manoj Kumar) Distribution
channels include Insurance Company’s channels, Bank’s Channels and Bacassussurer’s
Channels –new.
Sharp execution of these partnerships is critical. In particular, partners will need to focus
on initiatives that form the 10 building blocks of a successful bancassurance model by
Swiss re and Boston Consulting Group (BCG): develop products jointly;
streamline the product offering ; adopt a generalist sales model; create meaningful sales
targets and incentives; bundle products for life events; train rigorously
upgrade IT systems; define organizational roles; bolster customer service and post-sale
support; ensure capital and risk management.
11
Sam Evans, Walkman Lee, Richard Siu (2012), China’s Insurance sector and the
Evolution of bancassurance, the research studied future growth potential in china’s
insurance market that bancassurance was becoming increasingly important. The result of
authors survey highlighted strongest demand in the bank channel for mor complex
products including annuity and investment linked products. In survey about customer
demand found that there was strong demand for additional cover for existing products,
supporting the future growth potential
12
2.3. Chapter summary
The bank and insurance company have arranged as form a partnership that insurance
company can sell their products to the bank’s client base and arrangement the benefits or
profitable to both bank and insurance company. The banks earn additional revenue,
insurance company can expand their market and customer base that it is not expand sales
force. Reference to reseach of K. Lymberropoulos (2004) and G.S. Poli, Rao, D.N(2008)
to find opportunities market growth through cross selling insurance products by banks
and this researches are adapt author’s research in Vietnam to finding market opportunities
for bancassurance. However Author modified and updated other tools to suitable in
Vietnam currently.
13
Chapter 3: Research methodology
3.1 Research process
There are many people who wrote research process, Mark sauders et al (fifth edition
2009) in Research methods for business and students, Uma Sekaran and Roger Bougie
(2010) in Research method for business – A skill building approach, Anderson B.(1961)
in An introduction the scientific method and Mc Daniel C. and R. Gates (1991) in
Contemporary marketing research. Through the method above, in this study Author used
the method that adapted research objectives and results.
Figure 1: Process of this study
Identify the research problems
and objectives
Literature review
Designing the questionnaires
Pilot research
Redesigning and final the
questionnaires
Survey and collection data
-
Personal and group
discussion
-
Pre- Interview
Data analysis
Discuss and recommendation
14
3.2. Research model and hypothesis
3.2.1 Research model
O.C.W Jongeneel(2011) that identified bancassurance as a distribution channel of
insurance, based on the factors to examine; market concentration, internet usage, size of
the insurance market, level of deregulation and bank density and through research to
provide understanding of country specific bancassurance development
Figure 2: Bancassurance opportunities model of O.C.W Jongeneel
According to the research of G.S Popli, Rao, D.N (2008) used variable trust in insurance
agent and trust in banks to explore the customers’ attitude, K. Lymperopoulos (2004)
used trust in insurers and trust in banks to explore the customer attitude in factors
analysis. There are some insurance products or services which author can modify to
survey in Vietnam, may be sale in other countries and not suitable in Vietnam.
15
Figure 3: Conceptual model
Holding insurance products
Customer’s awareness
Opportunities to selling
insurance through the banks
Source of information
Specific insurance product
Trust in banks
Customer’s attitude
Trust in insurance
agent
Demographics
Gender, Age, Income,
Education
Analyzing customer’s attitude to bancassurance channel, it only is an factors to finding
market opportunities. Through customer’s attitude to know their behavior in new
distribution and combined with many factors as insurance product, willing to buy,
information source to finding solution to develop bancassurance.
Table 1: The factors in study customer’s attitude
Factors
The first factors
Identify
F1
the
Names in study
factors
which
customers believe to buy the
insurance
product
from
the
Trust in banks
banks channel
Identify
F2
the
factors
which
customers trust to buy insurance
product from insurance Agent
Trust in Insurance Agent
channel
16
3.2.2. Research hypothesis
H1: whether or not different between genders in customer’s attitudes to trust in banks and
insurance agent
H2: whether or not different between ages in customer’s attitudes to trust in banks and
insurance agent
H3: whether or not different between Incomes in customer’s attitudes to trust in banks
and insurance agent
H4: whether or not different between educations in customer’s attitudes to trust in banks
and insurance agent
3.3. Measurement and questionnaire design
3.3.1 Questionnaire design
The questionnaire included six parts and each part has an question details. The
questionnaire has adapt from the study of Lymberopoulos K et al (2004), G.S. Poli and
Rao, D.N (2008) in finding opportunity for selling insurance product through the bank
and the questionnaire has follow the research customer demand of KPMG (CBRC
circular 2010) for customer demand patterns for bancassurance to supporting the future
growth Market opportunities.
Table 2: The questionnaires included main points:
Questions
sources
Finding the products which customer used from banks
Accident insurance
Healthcare insurance
Motor – commercial vehicle insurance
Modified of
Lymperolous et al
(2004)
Travel insurance
House property insurance
Fire and exploration insurance
Marine cargo insurance (including import/export/inland
17
transit)
Life insurance
Exploring the reasons what customers buy insurance products
from Banks instead of insurance Agent
Trust
Existing personal relationship
Lymperolous et al
(2004)
Convenience in term of location
Good terms
Expertise
Use other services
Service quality
Communication
Source of information about the provision of insurance products
by banks
Lymperolous et al
Advertisement media
(2004) and
Friends, colleagues
G.S Popli et al (2008)
Bank employees
Brochures in the bank branch
Direct ma
Exploring customer’s attitudes to banks and Insurers channel:
Do you think that your Insurance Agent can advise you on
insurance products?
Lymperolous et al
18
Do you think that your Insurance Agent gives you all the
information needed?
(2004)
G.S Popli et al (2008)
Do you think that your Insurance Agent will not push you to
buy an insurance product?
Do you think that your Insurance Agent is expert in insurance
product?
Do you think that Bank employees will not push you to buy an
insurance product?
Do you trust Insurance Company for all your financial needs?
Do you trust your insurance agent?
Do you trust Insurance Agent more than bank?
Do you trust the bank employees?
Do you think that the Bank employees give you all the
information need?
Would you trust the bank for all your financial requirements?
Do you think that Bank employees can advise on insurance
products?
Do you think that Bank offers competitive insurance products?
Do you think that Bank employees have sufficient expertise in
insurance products?
Products features attracted to the product:
Protect for you and your family
Sam Evans et al
(2012)
-Pricing
- Saving element
- Long term guarantee returns
- Duration of policy > 5 years
- Short term guarantee returns
19
- Duration of policy < 5 years
Willingness to buy Additional insurance products from banks
Accident insurance
Modified of Sam
Evans et al (2012)
Healthcare insurance
Motor – commercial vehicle insurance
Travel insurance
House property insurance
Fire and exploration insurance
Marine cargo insurance (including import/export/inland
transit)
Life insurance
No above
Demographics
Gender
Modified of
Lymperolous et al
(2004)
Ages
Monthly income
Educations
3.3.2 Pilot study
Pilot study conducted 10 samples to find mistakes or problems and improve the latter’s
quality and efficiency of research
The questionnaire was pilot test in Ho Chi Minh City and got the feedback from
responses that author made changes to improve the questionnaire how to make it more
respondents friendly.
20
3.3.3 Finalize questionnaire
In the First part, the customers were asked their relationship to banks and insurance
companies through usage insurance products, reasons, willingness to buy insurance from
the banks
In the second part, the customers were asked their attitude to distribution channels were
measured in three dimension trust, staff competence and service expertise.
In the third part, the questions related to demographics (gender, age, income, education)
will be exploring to identify customer’s profile.
3.4. Sample size and data collection method
3.3.1 Sample size
The questionnaire sent over 250 customers to completive survey and author received
feedback of 206 respondents. In survey result received 82.4% from respondent face to
face.
3.3.2 Data collection method
The questionnaires require respondents fill out the form themselves, the questionnaire
was translated to Vietnamese to conduct survey and designed to be as simple and clear as
possible.
Based on questionnaires to identify existing customer’s demand and potential customers
to Flexibility of marketing planning decision making and state of adaptation to market
opportunities
3.5. Data analysis method
3.5.1 Data coding
The data was collected, coding, categorizing and entered into the Statistical
Package for the Social Sciences (SPSS) for analysis. All the data information entered
SPSS where frequencies were run for the descriptive statistics. The result of survey was
descriptive as percentages, mean, modes and ranges in chart or table form
14 questions that the questions were measured by Likert scale as follow:
-
1 = Strong degree
-
2 = Degree
21
-
3 = Neither degree or not
-
4 = Disagree
-
5 = Strong disagree
Code A to L for each question and used in factor analysis
Table 3: Coding Questions
Code
Questions
A
Do you think your Insurance Agent is expert in insurance products?
B
Do you think your Insurance Agent can advise you on insurance products?
C
Do you think your Insurance Agent gives you all the information needed?
D
Do you think Bank employees give you all the information need?
E
Do you think Bank offers competitive insurance products?
F
Do you trust Insurance Agent more than bank?
G
Do you think Bank employees can advise on insurance products?
H
Do you think Bank employees have sufficient expertise in insurance products?
I
Do you trust the bank employees?
J
Do you trust Insurance Agent?
K
would you trust the bank for all your financial requirements?
L
Do you trust Insurance Company for all your financial needs?
M
Do you think Bank employees will not push you to buy an insurance product?
N
Do you think your Insurance Agent will not push you to buy an insurance product?
Code for Multiple responses for questionnaires 1, 2, 3 and 6:
-
1= Yes
-
0= No
Code for demographics:
Gender:
-
1= Male
-
2= Female
Ages:
22
-
1= 21-30
-
2= 31-40
-
3= 41-50
-
4= 51+
Monthly income:
-
1 = -10 million dong
-
2= 10-20 million dong
-
3= 21-30 million dong
-
4= 30+ million dong
Education:
-
1= High school
-
2= University
-
3= Post graduate
-
4= Doctors
3.5.2 Analysis method
-
Some question data were entered into SPSS and some of them would be recoded
to next analysis. There were multiple response
-
Analyze: using frequency, descriptive and crosstabbulations
-
Analyzing customer’s attitude: Factor analysis used with KMO and bartlett’s test
of sphericity, principle components, varimax rotation,uppress absolute values less
than 0.2 and final 0.45 to eliminate less than 0.5 loading.
-
One Way Anova and Independent T Test would be use in finding relationship
customer’s attitude to distribution channels based on demographics.
23
3.6. Chapter summary
In the main points in this chapter that identify research process to conduct the study Uma
Sekaran and Roger Bougie (2010), questionnaires and how to conduct survey adapt
Lymperopoulos K.et al(2004) and G.S Popli et al(2008), also the studied of Sam Evan et
al(2012) for pattern customer demands in Bancassurance. Pilot test would be conduct to
customers and interview them to modified questions friendly to them and SPSS used data
statistic and supported results in research process.
24
Chapter 4: Data analysis and finding result
4.1. Sample description
This research was covered 206 people who was working and living in Ho Chi Minh City,
Vietnam. Respondents were typically in the survey, with 56 percent (116 people) from
female, with 43.7 percent (90 people) from male , 30.1 percent at 21-30 ages, 31.6
percent at 31-40 ages, 57.8 percent graduated from colleges and university, 48.1 percent
from monthly income less than 10 million Vietnam dongs, 32.5 percent monthly income
from 10-20 million dong (table4).
Table 4: Respondent’s profile
Gender
Valid 1 male
2 female
Total
Frequency Percent
Valid Percent Cumulative Percent
90
43.7
43.7
43.7
116
56.3
56.3
100
206
100
100
Age
Valid
1 21-30
2 31-40
3 41-50
4 >51
Total
Frequency Percent
Valid Percent Cumulative Percent
62
30.1
30.1
30.1
65
31.6
31.6
61.7
15
7.3
7.3
68.9
64
31.1
31.1
100
206
100
100
Education
Valid 1 High school
2 University
3 Postgraduate
4 Doctorate
Total
Monthly income
Valid 1 30 million
Total
Frequency Percent
Valid Percent Cumulative Percent
67
32.5
32.5
32.5
119
57.8
57.8
90.3
15
7.3
7.3
97.6
5
2.4
2.4
100
206
100
100
Frequency Percent
Valid Percent Cumulative Percent
99
48.1
48.1
48.1
67
32.5
32.5
80.6
31
15
15
95.6
9
4.4
4.4
100
206
100
100
25
4.2 Exploring the current use of insurance products and bancassurance services
Reference (Table5) with 80.5 percent of respondents were currently hold vehicle
insurance, 44.9 percent of respondents were hold healthcare insurance, 41 percent of
respondents were hold personal accident.
Table 5: Current use of insurance products
Number
Percentage
I use personal accident
84
41
I use healthcare insurance
92
44.9
I use vehicle insurance
165
80.5
I use travel insurance
15
7.3
I use home insurance
9
4.4
I use fire and special perils
6
2.9
I use marine cargo insurance
9
4.4
I use life insurance
48
23.4
26
Figure 4: Current use of insurance products
Life insurance
23.4%
Marine cargo insurance
Fire and special perils
4.4%
2.9%
Home insurance
4.4%
Travel insurance
7.3%
Vehicle insurance
80.5%
Healthcare insurance
44.9%
Personal accident
41.0%
4.3 Profile of customers who have already used their bank in order to buy an
insurance product
All respondent have hold at least on insurance product in currently, the income less than
10 million dong with 48.3 percent, higher income with 32.2 percent at over 10 million
dong (Gross monthly income)
Table 6: Customers who used their banks to in order insurance products from the
bank products
Age
Number
of
21-30 years
31-50 years
50 + years
Total
61/205
80/205
64/205
205
29.8%
39%
31.2%
-10
10-20
20+
million dong
million dong
Million dong
users/total
number percentage
Gross monthly income
27
99/205
66/205
40/205
number percentage
48.3%
32.2%
19.5%
Education
High school
University +
66/205
139/205
32.2%
67.8%
Light–Medium
Heavy
(1-2)
(Over 2)
69/205
136/205
34%
66%
Number
Number
of
of
205
users/total
205
users/total
number percentage
Number of users/ Total
number
205
The respondents had demand for products coverage, 53 percent was healthcare insurance,
42 percent has life insurance, 35 percent has personal accident, there are have new
demand in purchase of consumers.
4.4 Reasons why customers would like to buy insurance products from the banks
Reference (Table 7) With 79.9% out of sample were aware that conveniences in location,
with 48.5% from communication and 47.4% from existing personal relationship.
Table 7: reasons which customer would like to buy insurance from banks
Number
Percentage
Existing personal relationship
92
47.4%
Trust
75
38.7%
Convenience in location
155
79.9%
Communication
94
48.5%
Good terms
84
43.3%
28
Expertise
56
28.9%
Use other service
36
18.6%
service quality
40
20.6%
Figure 5: Reasons which customer would like to buy insurance from banks
4.5 Source of information where customer in order to buy insurance products
Reference (Table 8) a lot of people said that they know the insurance from friends,
colleagues, with 57.2 percent, 40.5 percent from Advertisement media and 36.4 percent
from bank employees. The three main information sources were popular to these
customers.
Table 8: Sources of information that banks provide insurance to customers
Number
Percentage
Advertisement media
70
40.5%
Friends, colleagues
99
57.2%
29
Bank employees
63
36.4%
Brochures in the bank branch
25
14.5%
Direct mail
17
9.8%
Figure 6: Sources of information that banks provide insurance to customers
4.6. Profile of customers aware that their bank offers insurance products (Number
of aware customers = 173)
Table 9: Profile of customers aware that their bank offers insurance products
Age
21-30 years
31-50 years
50 + years
Total
Number of aware customers/total
number percentage of customers who
are that their bank offers insurance
product
50/61
70/80
53/64
173/205
82.0%
87.5%
82.8%
84.4%
30
Gross monthly income
Number of aware customers/total
number percentage of customers who
are that their bank offers insurance
product
Education
-10
million dong
10-20
million dong
20+
million dong
Total
81/99
54/66
38/40
173/205
81.8%
81.8%
95.0%
84.4%
High school
University +
Total
57/67
116/139
173/205
Number of aware customers/total
number percentage of customers who
are that their bank offers insurance
product
85.1%
83.5%
84.4%
Number of products used
Light (1-2)
Heavy (over 2)
Total
59/67
114/139
173/205
Number of aware customers/total
number percentage of customers who
are that their bank offers insurance
product
88.1%
82.0%
84.4%
4.7 Willingness to buy additional insurance product from banks
At (Table 10) with 51.5 percent of customers care healthcare insurance as an main
insurance product to buy additional, 40.7 percent for life insurance and 33.8 percent for
personal accident.
Table 10: Willingness to buy additional insurance product from banks
Number
Percentage
Personal accident
69
33.8
Healthcare insurance
105
51.5
Vehicle insurance
58
28.4
Travel insurance
39
19.1
Home insurance
32
15.7
Fire and special perils
30
14.7
31
Marine cargo insurance
12
5.9
life insurance
83
40.7
no above
7
3.4
Figure 7: Willingness to buy additional insurance product from banks
4.8 Exploring customer’s attitude towards Trustworthiness, competence and service
expertise of banks and insurance agent.
4.8.1 Mean scores
Customer’s attitude observed through 14 questions and descriptive statistics, with Bank
employees have sufficient expertise in insurance products (3.05), Bank offers competitive
insurance products and Bank employees can advise on insurance products (3.11), the
mean scores lowest from insurers through customer’s attitude in selling insurance
products. However, customer’s attitude has strong to insurance Agent can advise you on
insurance products (3.85), Insurance Agent gives you all the information needed (3.73),
Insurance Agent will not push you to buy an insurance product (3.60). According to the
descriptive above, Banks push the customers to buy insurance product better than
32
Insurance Agent. Almost customers were more good attitude to Insurance agent than
Bank employees (Table11).
Table 11: Ranking customer’s attitude to trust, competence, service expertise of
Banks and Insurance companies based on mean scores
Std.
Deviation
Code
Questions
Mean
B
Your Insurance Agent can advise you on insurance products
3.85
0.764
C
Your Insurance Agent gives you all the information needed
3.73
0.805
N
Your Insurance Agent will not push you to buy an insurance product
3.6
0.807
A
Your Insurance Agent is expert in insurance product
3.47
0.914
M
Bank employees will not push you to buy an insurance product
3.44
0.715
L
You trust Insurance Company for all your financial needs
3.31
0.778
F
You trust Insurance Agent more than bank
3.31
0.889
J
You trust Insurance Agent
3.29
0.994
G
Bank employees can advise on insurance products
3.27
0.785
D
Bank employees give you all the information need
3.25
0.934
K
You trust the bank for all your financial requirements
3.17
0.864
I
You trust the bank employees
3.11
0.917
E
Bank offers competive insurance products
3.11
0.906
H
Bank employees have sufficient expertise in insurance products
3.05
0.943
4.8.2 Cronbach’s alpha
Cronbach’s alpha is measured reliability analaysis –scale (alpha), 0.7-08 accepted to use
in analysis. However it is not easy to get the higher in this questionnaire that new to
respondents in research, cronbach alpha more than 0.6 can used as reliable scale
(Nunnally, 1978; Peterson, 1994; Slater, 1995)
Cronbach alpha for 14 questions was 0.8326 more than 0.6, reliable scales (Appendix 4)
33
4.8.3 Factor analysis
Using Principal component
Rotation: Variance
Suppress absolute value less than: 0.2 and final 0.49
Scores would be save as variable at final
Eliminating K and F out of the sample, descriptive statistic with the result in Table 11 and
questions in descriptive were be used in factor analysis.
Table 12: Descriptive statistics
Code
Questions
Mean
Std.
Deviation
B
Your Insurance Agent can advise you on insurance 3.85
0.764
products
C
Your Insurance Agent gives you all the information 3.73
0.805
needed
N
Your Insurance Agent will not push you to buy an 3.6
0.807
insurance product
A
Your Insurance Agent is expert in insurance product
3.47
0.914
M
Bank employees will not push you to buy an insurance 3.44
0.715
product
L
You trust Insurance Company for all your financial needs
3.31
0.778
J
You trust Insurance Agent
3.29
0.994
G
Bank employees can advise on insurance products
3.27
0.785
D
Bank employees give you all the information need
3.25
0.934
I
You trust the bank employees
3.11
0.917
34
E
Bank offers competitive insurance products
3.11
0.906
H
Bank employees have sufficient expertise in insurance 3.05
0.943
products
The result of factor analysis (Appendix 5):
Time 1: Run all 14 question
Time 2: Eliminate K
Time 3: Eliminate F
Time 4: save as variable and option: 0.45 to eliminate variable less than 0.5
Kaiser-Meyer-Olkin(KMO) measure of sampling adequacy: it is a main key to acceptable
in EFA analysis, KMO of sampling :0.766 (more than 0.5), reliable scales (Table 13).
Table 13: Kaiser-Meyer-Olkin(KMO)
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy.
Bartlett's Test of
Sphericity
Approx. ChiSquare
df
Sig.
.766
755.507
66
.000
Based on the finding in Table 14, the factor 1 explained 32.901 percent, factor 2
explained 14.009 percent, factor 3 explained 11.319 percent and factor 4 explained 9.275
percent. Factor 1 was explained more effective than others; four distinct factors were
explaining 67.504 percent of total variance
Table 14: Total variance explained
Compone
nt
1
2
Extraction Sums of
Rotation Sums of Squared
Initial Eigenvalues
Squared Loadings
Loadings
% of
% of
Cumulati
Varian Cumulati
% of
Cumulati
Total Variance
ve %
Total
ce
ve %
Total Variance
ve %
3.948
32.901
32.901 3.948 32.901
32.901 2.414
20.120
20.120
1.681
14.009
46.910 1.681 14.009
46.910 2.151
17.923
38.042
35
3
4
5
6
7
8
9
10
11
12
1.358
1.113
.678
.644
.606
.479
.452
.408
.362
.270
11.319
9.275
5.647
5.368
5.053
3.989
3.769
3.400
3.020
2.250
58.229
67.504
73.151
78.519
83.572
87.562
91.331
94.731
97.750
100.000
1.358 11.319
1.113 9.275
58.229 2.020
67.504 1.515
16.837
12.625
54.880
67.504
14 question after four times in factor analysis and finally there are 4 components that over
0.5 loading (Table 14)
Table 15: Rotated Component Matrix(a)
1
Component
2
3
A Your Insurance Agent is expert in insurance
product
.779
B Your Insurance Agent can advise you on
insurance products
.831
C Your Insurance Agent gives you all the
information needed
.819
D Bank employees give you all the information
need
.724
E Bank offers competitive insurance products
.798
4
G Bank employees can advise on insurance products
.636
H Bank employees have sufficient expertise in
insurance products
.788
I You trust the bank employees
.782
J You trust Insurance Agent
.845
L You trust Insurance Company for all your
financial needs
.732
M Bank employees will not push you to buy an
insurance product
.835
N Your Insurance Agent will not push you to buy an
insurance product
.781
36
The factors in questions were included D, E, G, H named “Expertise in Banks”, A,
B, C named “Expertise in Insurance Agents”, L, M, N named “Push in selling” Finally, I,
J named “Trust”, the factors’ score was 0.5 loading would be chosen (Table 15). The K,F
questions were not included because their scores were lower 0.5.
Table 16: Renamed in study
Factors
F1
F2
The first factors
Names in study
Expertise of bank employees in
sell insurance products
Expertise of Insurance Agents in
sell insurance products
Expertise in Banks employees
Expertise in Insurance Agents
Push the customers to buy the
F3
insurance
products
for
both
Banks employees and Insurance
Push in selling
Agents
F4
Trust both Bank employees and
Insurance Agents
Trust
Figure 8: The model after modified from finding in Factors analysis for customer’s
attitude:
Expertise in Bank employees
Expertise in Insurance agents
Customer’s attitude
Push in selling
Control variables
Trust
Gender, Age,
Income, Education
37
Hypothesis for new model:
H1: whether or not different between Genders in customers ’attitude to Banks and
insurers
H2: whether or not different between Ages in customers ’attitude to Banks and insurers
H3: whether or not different between Incomes in customers ’attitude to Banks and
insurers
H4: whether or not different between Educations in customers ’attitude to Banks and
insurers
Reliability test for new factors (Appendix 5):
Expertise in Insurance Agents, with Cronch alpha 0.7758 more than 0.6, reliable scale
Expertise in bank employees, with Cronch alpha 0.7869 more than 0.6, reliable scale
Push in selling, with Cronch alpha 0.7249 more than 0.6, reliable scale
Trust, with Cronch alpha 0.6153 more than 0.6, reliable scale.
The objective of this study to investigate the relationship between the factors and
demographics (genders, ages, incomes, educations), Independent T Test would be used in
analysis of variance because each demographics have two groups.
4.9 Compare means
To finding customer’s attitude whether or not different awareness to bancasurance base
on demographic. The result from table 6 which One way anova used for analyzing that it
is over two groups as ages, income and Independent sample T Test used for only two
groups as gender and education.
4.9.1 One way Anova
Hypothesis 2: One way Anova used to finding the result in the relationship of age to
banks and insurers, Expertise in Bank employees, sig = 0.971; Expertise in Insurance
Agents, sig = 0.317; push in selling, sig = 0.225 and Trust, sig = 0.955 all of them more
than 0.05, no different age groups attitude to banks and insurers
38
Hypothesis 3: One way Anova used to finding the result in the relationship of income to
banks and insurers, Expertise in Bank employees, sig = 0.506; Expertise in Insurance
Agents, sig = 0.328; push in selling, sig = 0.585 and Trust, sig = 0.113 all of them more
than 0.05, no different education groups attitude to banks and insurers
4.9.2. Independent sample T test
Hypothesis 1: According to the result in finding the relationship of genders to banks and
insurers, Expertise in Bank employees, sig = 0.297; Expertise in Insurance Agents, sig =
0.876; push in selling, sig = 0.213 and Trust, sig = 0.492 all of them more than 0.05, no
different male and female attitude to banks and insurers
Hypothesis 4: The result in finding the relationship of education to banks and insurers,
Expertise in Bank employees, sig = 0.464; Expertise in Insurance Agents, sig = 0.827;
push in selling, sig = 0.860 and Trust, sig = 0.509 all of them more than 0.05, no different
age groups attitude to banks and insurers
39
4.10. Chapter summary
The customer was more positive to insurers than banks based on result in mean scores.
However, finding relationship based on demographics were no different customer’s
attitude to banks and insurers. There are opportunities for through selling insurance
products from the banks with the result.
Finding opportunities for bancassurance through results survey customers that are
products, awareness, reasons, source of information to identify why customers refer to
buy cross selling by banks. Through the results find to conclusion and recommendation
for bancassurance growth opportunities in Vietnam.
40
Chapter 5: Conclusion and recommendation
5.1. Research finding and discussion
The objective of this study was finding potential customer demand through survey 206
people who hold at least an insurance or transaction with the banks. Identify potential
demand to improve cross selling through banks. Based on potential profile’s customer
Customers were at least one insurance product; many said that they hold vehicle
insurance with 80.5 percent, 44.9 percent healthcare insurance, 41 percent personal
accident (Table 5) this results is not difficult to understanding why vehicle insurance have
a big rate in cross selling through the banks because it is a legally compulsory product
and/ or relate to other services, for example, get the loan from the banks, customer must
buy insurance for their cars. These product relate to personal or income group and easy to
cross selling through the banks.
The result of level of current usage that have many customers used insurance
products(Table 6), with 39 percent at 31-50 years old, education graduated university and
over university got 67.5 percent and a large of customers used over two insurance
products. There are a large opportunity that customers have monthly income over 20
million dong with 19.5 percent.
Finding the reason why customers prefer to buy insurance product from the banks
(Table7). There are some main reason as convenience in location (one stop shop) 79.9
percent, communication 48.5 percent and existing personal relationship 47.4 percent
To increasing sales in bancassurance, the banks could offer to customers basing on the
source information (Table 8), there are three opportunities to promoting products, Friends
and colleagues 57.2 percent, advertisement media 40.5 percent and bank employees 36.4
percent.
The greatest opportunity that customers are willing to buy insurance products from the
banks (Table 10), healthcare insurance 51.5 percent, life insurance 40.7 percent and
personal accident 33.8 percent. The managers can used this information to consider and
chosen portfolio insurance products that cross selling to customers through the banks.
In factors analysis of this study to finding customer’s attitude to distribution channels,
especially insurers and bank (Table 12), the results in finding that customer prefer
insurers more than banks.
41
The bancassurance strategy is very necessary to cross selling through the banks. Identify
the model for corporate between insurers and banks should be suitable with together
according to A Karunagran(2006).
Portfolio insurance products must be priority in bancassurance according to
Lymperopoulos K. et al (2004), the insurers and banks should modified the products that
customers attend to buy Vehicle, healthcare, life insurance. Chiang Ku Fan and Yu
Hsuang Lee (2010) found that product innovation, low cost, service quality and sales
promotion are rated as important in research conclusion “Key factors influencing
bancassurance success”. Furthermore in research customer demand of Sam Evan et al
(2012) that highlighted strongest demand in the bank channel for the more complex
products (Including annuity and investment linked products). Banks need expertise in
product design, underwriting, administration and claims according to Elisa M.
Wever(2000), Banks should use customers data bases that could use demographic and
financial information to generate warn leads for insurance sales, resulting in significant
distribution efficiencies.
Existing opportunities to sell insurance products through the branch bank network
according to G.S Popli et al (2008), designing a clear and effective marketing strategy
aimed at increasing awareness and customer willingness to choose banks as insurance
providers.
The most important factors influencing a consumer were all linked to providing a highquality service according to Sam Evan et al(2012), banks can provide a relationship based
service and work closely with customers to understanding what they needs.
Bank
employees should push in selling and create trust to them. Skill program in service selling
should be done to improve selling
skill and persuading customers. It should be done
both insurers and banks in this corporation.
According to Marjorie Chevalier et al(2005)., train and motivate bank employees to sell
insurance products, develop IT and management system between banks and insurers
5.2 Recommendation
Trust and expertise in banks must be improved through training program for bank
employees based on corporate between insurers and banks. The insurers could train for
bank employees about insurance products (wordings, premium rate, claim process…) the
42
bank employees have expertise in insurance product that customers believe in
bancassurance that is an opportunity to increasing volume sales.
The banks employees should provide more information about insurance products to
customers and create trusty to them. Through the result that the bank employee not push
selling in insurance product to customers. Source information should send to customer
more as brochures, wording of insurance and claim procedures to customer know clearly
the insurance product or service which they are willing to buy.
Insurance products should be improved and portfolio to adapt the customer’s need in
buying insurance products through banks. There are many insurance products in the
market. However it only some insurance product to sell through the banks because market
segment in bancassurance based on the customer almost has transaction with the bank and
relation to their loan. Redesign the specific products adapt what customer want and need
is necessary in bancassurance.
Location should be convenience to customer easy in transaction and buy insurance
products. When they come to transaction with the bank and bank employee will offer
insurance products to them. Convenience location should be easy to transaction.
In analysis customer’s attitude to bancassurance that found that different gender, income,
age, education to attitude in bancassurance awareness. Almost they are not different
attitude and behaviors in this distribution channel. However the customer prefers
insurance company than banks based on mean score. Market segment should be focus on
customers that have income over 10 million dong and marketing strategic to segment.
5.3 Limitation of the study
Author survey customers in Ho Chi Minh City because it is limited time to do the
research. The research emphasized on potential customer demand to find opportunities
market growth for bancassurance in selling insurance product through the banks.
The other area will be different in usage insurance products and opportunities to cross
selling. Monthly Income and education will be consider carefully to customers’ attitude
in others cities, provinces that different to distribution channels
Using questionnaires and sample in statistics were probability. However sampling error
was possible
43
In this study, basing on previous research in Greece, India, China, Latin American all of
them that countries are more development than Vietnam in financial, service, insurance
market.
5.4 Further research
The study to implication perfectly, further research is necessary with a larger sample for
many other cities, provinces both urban and rural to have the result compare different and
finding different opportunities for each area.
Customer’s satisfaction in buy insurance products through banks to improve cross selling
that must be further research.
Further research the corporation model between banks and insurers in through cross
selling.
44
5.5 Chapter summary
In this research that found factors were effected to customer demand and opportunities to
develop bancassurance in Vietnam for both life and nonlife insurance. Identified portfolio
insurance products, source information, customer’s aware and trend to buy additional
insurance product through banks as an insurance distribution. Training is a key factor to
sell insurance product through the banks because expertise employees will be introduce
detail insurance to customers. Through research those openings further more research in
future for bancassurance in Vietnam. Because it is a new distribution that finding market
opportunities in bancasurance is very important to success in cross selling insurance
product through the banks and suitable strategy
for corporate between insurance
companies and banks. Bancassurance was developed well that benefits to banks, insurers
and customers
45
References
1. Abheek Barua(2004): Bancassurance New Concept to June, 2004
2. A.Lan W. Finkelstein, Steven M. Gathje, J. Lynn Peabody (1995): Bancassurance and
Product Development to Vol. 21, No.1, 1995
3. A. Karunagaran(2006): Bancassurance – A Feasible Strategy for Banks in India to
Vol.27, No.3, winter 2006
4. Aurelijia Ulbinaite, Marijia Kueinskiene and Yannick Le Moulles(2011):
Conceptualising and Simulating Insurance Consumer Behaviour to International Journal
Modeling and Optimizzation, Vol.1, No.3, August 2011
5. Borko Krstis, Nevenka Vojvodic-Milikovic, Dejan Mandic(2011): Bancassurance –
New Options for the Development of Serbian Financial sector (Economics and
organization) Vol.8, No.1, 2011, PP. 15-29
6. Brahman R, Lokanandha Reddy Irala, Aparna Pulugundla(2004): Bancassurance in
India- Issues and Challenges to Vol.04, No.01, January 2004
7. Chiang Ku Fan, Yu Hsuang Lee(2010): Key Factors Influencing Bancassurance
Success – Mainland China Evidence (J. Service Science and management) to No.3, 2010,
PP. 520-528
8. CEA- Insures of Europe(2011): European Insurance in Figuress, Statistic No.44,
December 2011
9. Elisa M. Wever(2000): Latin America Bancassurance, International Section news to
No.23, Septembet 2000
10. G.S. Poli and Rao, D.N(2008): Prospects and Challenges for Selling Insurance
Product Trough Banks In Indian, 2008
11. Horst Lochel, Heike Brost, Helena Xiang Le (2008): Benefits and Costs of Integrated
Financial Services Providers, Business Management Training Project No. 006, 2008
12. KPMG- Financial Services(2012): Securing a Bright Future – China’s Insurance
Sector and Evolution of Bancassurance to No. HK-FS12-001, February 2012
13. Luis M. B Cabral, Jaao A. C santos (2001): Cross Selling and Banking Efficiency,
May 2001
46
14. Marjorie Chevalier, Carole Launay andBerangere Mainguy (2005): Analysis of
bancassurance and its status around the world, focus Oct. 2005
15. Munich Re Group(2001): Bancassurance in Practice
16.Stefania Cosci, Valentina Maliciani, Valen tina Sabato (2012): The Transition to a
Marketing Orientation in Banking – Cross Selling Screening Incentives and Information
Synergies to Banks and Bank Systems Vol.7, Issue 1, 2012
17. Swiss Re (2012): World Insurance in 2011 – Non life Insurance for takeoff to Sigma
No. 3, 2012
18. Swiss Re (2007): Bancassurance – Emerging Trends Opportunities and Challenges to
Sigma No.5, 2007
19. Valters Kaze (2010): The Impact of Customer Values on Purchasing Behavior. A case
of Latvian Insurance Market to Ekonomika IR Vadyba ISSN 1822-6515, 2010, 15
20. Wager A. Kamakura, Michel Wedel, Fernando De Rosa, Jose A Fonso
Mazzon(2003): Cross-Selling Through Database Marketing: A mixed data factor analyzer
for data augmentation and prediction to Intern. J. of Research in Marketing 20 (2003),
PP. 45–65
21. Webbaohiem.net
47
Appendix
Appendix 1: Survey questionnaires
Hello He/She!
My name is Nguyen Ngoc Noi who is a student major business administration in
International University – Ho Chi Minh City National University
I am doing research: “Finding market opportunities for bancassurance in Vietnam”
(Bancassurance: The distribution channel sells product/service insurance through banks)
I wish you spent little time to help me complete the survey questions, comments,
suggestions, answers of yours that is the most useful source of information to help me do
research and through survey result to provide some solutions to contribute and
development of bancassurance distribution channel in Vietnam
Sincerely thanks to the collaboration of yours.
1. What insurance policies do you currently hold?
(Can choice one more)
Accident insurance
Healthcare insurance
Motor – commercial vehicle insurance
Travel insurance
House property insurance
Fire and exploration insurance
Marine cargo insurance (including import/export/inland transit)
Life insurance
2. Which the source of information did you buy your policies from the banks?
(Can choice one more)
Advertisement media
Friends, colleagues
Bank employees
Brochures in the bank branch
Direct mail
3. Which the reasons that you would like to buy insurance product from banks?
(Can choice one more)
Existing personal relationship
Trust
Convenience in location
Communication
Good terms
Expertise
Use other services
Service quality
48
4
What do you think about the question as follows?
1. Totally disagree
4. Agree
2. Disagree 3. Neither agree or disagree
5. Totally agree
do you think your Insurance Agent is expert in
insurance products?
1
2
3
4
5
Do you think your Insurance Agent can advise you
on insurance products?
1
2
3
4
5
Do you think your Insurance Agent gives you all the
information needed?
1
2
3
4
5
Do you think Bank employees give you all the
information need?
1
2
3
4
5
Do you think Bank offers completive insurance
products?
1
2
3
4
5
1
2
3
4
5
Do you think Bank employees can advise on
insurance products?
1
2
3
4
5
Do you think Bank employees have sufficient
expertise in insurance products?
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
Would you trust the bank for all your financial
requirements?
1
2
3
4
5
Do you trust Insurance Company for all your
financial needs?
1
2
3
4
5
Do you think Bank employees will not push you to
buy an insurance product?
1
2
3
4
5
Do you think your Insurance Agent will not push
you to buy an insurance product?
1
2
3
4
5
Do you trust Insurance Agent more than bank?
Do you trust the bank employees?
Do you trust Insurance Agent?
5
What products features attracted you to the product?
49
1. Totally disagree
4. Agree
2. Disagree 3. Neither agree or disagree
5. Totally agree
Protect for you and your family
Pricing
Saving element
Long term guarantee returns
Duration of policy > 5 years
1
1
1
1
1
2
2
2
2
2
3
3
3
3
3
4
4
4
4
4
5
5
5
5
5
Short term guarantee returns
Duration of policy < 5 years
1
1
2
2
3
3
4
4
5
5
6. What additional products/coverage would you like to buy from banks?
(Can choice one more)
Accident insurance
Healthcare insurance
Motor – commercial vehicle insurance
Travel insurance
House property insurance
Fire and exploration insurance
Marine cargo insurance (including import/export/inland transit)
Life insurance
No above
7. Gender:
Male
Female
8. Age
21-30
31-40
41-50
>51
9. Monthly income
30 million dongs
10. Education
High school
College - University
Postgraduate
Doctorate
Sincere thanks to the cooperation and help of yours!
50
Appendix 2: Crosstabulation
Multiple Response
* * *
C R O S S T A B U L A T I O N
$PRODUCT (tabulating 1)
by AGE2 age recoded
* * *
insurance product
AGE2
Count
21-30 yr 30-50 yr 50+ yrs
s
s
Row
Total
1
$PRODUCT
2
3
25
PRO1
personal accident
PRO2
healthcare insurance
PRO3
vihicle insurance
PRO4
travel insurance
PRO5
home insurance
23
36
34
38
50
65
20
50
7
5
0
5
PRO6
Fire and special per
PRO7
marine cargo insuran
PRO8
life insurance
1
3
2
0
6
9
19
61
29.8
80
39.0
20
3
Column
Total
4
3
64
31.2
84
41.0
92
44.9
165
80.5
15
7.3
9
4.4
6
2.9
9
4.4
48
23.4
205
100.0
Percents and totals based on respondents
205 valid cases;
_
1 missing cases
* * *
C R O S S T A B U L A T I O N
$PRODUCT (tabulating 1)
by INCOM22 income recoded
* * *
insurance product
INCOM22
Count
-10 mill 10-20 mi 20+ mill
ion dong llion do ion dong
Row
51
ng
$PRODUCT
1
Total
2
3
17
PRO1
personal accident
PRO2
healthcare insurance
PRO3
vihicle insurance
PRO4
travel insurance
PRO5
home insurance
PRO7
marine cargo insuran
PRO8
life insurance
31
44
28
20
77
57
31
6
5
0
8
1
3
0
5
17
16
2
4
99
48.3
66
32.2
Column
Total
15
1
4
PRO6
Fire and special per
36
40
19.5
84
41.0
92
44.9
165
80.5
15
7.3
9
4.4
6
2.9
9
4.4
48
23.4
205
100.0
Percents and totals based on respondents
205 valid cases;
1 missing cases
EDU1
Count
High sch Universi
ool
ty +
Row
Total
$PRODUCT
1
2
61
PRO1
personal accident
PRO2
healthcare insurance
PRO3
vihicle insurance
PRO4
travel insurance
PRO5
home insurance
PRO6
Fire and special per
PRO7
marine cargo insuran
PRO8
life insurance
Column
Total
23
26
66
54
111
4
11
3
6
3
3
4
5
15
33
66
32.2
139
67.8
84
41.0
92
44.9
165
80.5
15
7.3
9
4.4
6
2.9
9
4.4
48
23.4
205
100.0
Percents and totals based on respondents
52
205 valid cases;
1 missing cases
Appendix 3: Descriptive statistic
Descriptive Statistics
Minimu
m
Maximu
m
206
2
5
3.85
.764
206
2
5
3.73
.805
206
1
5
3.60
.807
206
1
5
3.47
.914
206
1
5
3.44
.715
206
1
5
3.31
.778
206
1
5
3.31
.889
206
1
5
3.29
.994
206
1
5
3.27
.785
206
1
5
3.25
.934
206
1
5
3.17
.864
206
1
5
3.11
.917
206
1
5
3.11
.906
206
1
5
3.05
.943
N
Your Insurance Agent
can advise you on
insurance products
Your Insurance Agent
gives you all the
information needed
Your Insurance Agent
will not push you to
buy an insurance
product
Your Insurance Agent
is expert in insurance
product
Bank employees will
not push you to buy an
insurance product
You trust Insurance
Company for all your
financial needs
You trust your
insurance agent
You trust Insurance
Agent more than bank
You trust the bank
employees
Bank employees give
you all the information
need
You trust the bank for
all your financial
requirements
Bank employees can
advise on insurance
products
Bank offers competive
insurance products
Bank employees have
sufficient expertise in
insurance products
Valid N (listwise)
Mean
Std.
Deviation
206
53
Appendix 4: Result of reliability test
R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)
Mean
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
A
B
C
D
E
F
G
H
I
J
K
L
M
N
Statistics for
SCALE
3.4660
3.8544
3.7282
3.2524
3.1117
3.3107
3.2670
3.0534
3.1117
3.2913
3.1699
3.3107
3.4417
3.6019
Std Dev
Cases
.9140
206.0
.7639
206.0
.8048
206.0
.9341
206.0
.9064
206.0
.8893
206.0
.7850
206.0
.9433
206.0
.9171
206.0
.9939
206.0
.8641
206.0
.7781
206.0
.7150
206.0
.8066
206.0
N of
Mean Variance Std Dev Variables
46.9709 45.8430 6.7707
14
Item-total Statistics
Scale
Mean
if Item
Deleted
A
B
C
D
E
F
G
H
I
J
K
L
M
43.5049
43.1165
43.2427
43.7184
43.8592
43.6602
43.7039
43.9175
43.8592
43.6796
43.8010
43.6602
43.5291
Scale
Corrected
Variance
ItemAlpha
if Item
Total
if Item
Deleted Correlation
Deleted
39.6366
40.3473
40.3701
38.2618
39.5752
38.6059
39.7412
37.9493
39.2630
41.0188
40.8626
41.9425
42.0357
.4667
.5062
.4718
.5805
.4775
.5833
.5543
.6026
.4993
.3013
.3833
.3269
.3555
.8219
.8197
.8216
.8136
.8211
.8137
.8166
.8118
.8196
.8347
.8274
.8303
.8285
54
N
_
43.3689
40.9071
.4154
.8251
R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)
Reliability Coefficients
N of Cases =
Alpha =
206.0
N of Items = 14
.8326
55
Appendix 5: Result of Factor Analysis (EFA)
1. Factor analysis first round
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy.
Bartlett's Test of
Sphericity
Approx. ChiSquare
df
Sig.
.787
931.852
91
.000
Communalities
Initial
A Your Insurance
Agent is expert in
insurance product
B Your Insurance
Agent can advise you
on insurance products
C Your Insurance
Agent gives you all
the information
Extractio
n
1.000
.675
1.000
.727
1.000
.695
56
needed
D Bank employees
give you all the
information need
E Bank offers
competive insurance
products
F You trust
Insurance Agent more
than bank
G Bank employees
can advise on
insurance products
H Bank employees
have sufficient
expertise in insurance
products
I You trust the bank
employees
J You trust Insurance
Agent
K You trust the bank
for all your financial
requirements
L You trust
Insurance Company
for all your financial
needs
1.000
.642
1.000
.616
1.000
.587
1.000
.547
1.000
.706
1.000
.655
1.000
.727
1.000
.281
1.000
.593
57
M Bank employees
will not push you to
1.000
.716
buy an insurance
product
N Your Insurance
Agent will not push
1.000
.664
you to buy an
insurance product
Extraction Method: Principal Component Analysis.
58
Total Variance Explained
Initial Eigenvalues
Extraction Sums of Squared Loadings
Componen
% of
Cumulative
% of
Cumulative
t
Total
Variance
%
Total
Variance
%
1
4.530
32.357
32.357
4.530
32.357
32.357
2
1.776
12.684
45.041
1.776
12.684
45.041
3
1.382
9.870
54.910
1.382
9.870
54.910
4
1.144
8.169
63.080
1.144
8.169
63.080
5
.894
6.385
69.465
6
.666
4.759
74.224
7
.641
4.577
78.801
8
.619
4.423
83.224
9
.476
3.404
86.627
10
.452
3.231
89.859
11
.440
3.141
92.999
12
.398
2.841
95.840
13
.337
2.408
98.248
14
.245
1.752
100.000
Extraction Method: Principal Component Analysis.
Rotation Sums of Squared Loadings
% of
Cumulative
Total
Variance
%
2.583
18.452
18.452
2.332
16.654
35.106
2.051
14.648
49.753
1.866
13.326
63.080
Component Matrix(a)
1
A Your Insurance
Agent is expert in
insurance product
.575
Component
2
3
-.473
4
.336
59
B Your Insurance
Agent can advise you
on insurance products
C Your Insurance
Agent gives you all
the information
needed
D Bank employees
give you all the
information need
E Bank offers
competive insurance
products
F You trust
Insurance Agent more
than bank
G Bank employees
can advise on
insurance products
H Bank employees
have sufficient
expertise in insurance
products
I You trust the bank
employees
J You trust Insurance
Agent
K You trust the bank
for all your financial
requirements
.609
-.284
.525
.573
-.295
.526
.689
-.382
.586
.672
-.235
-.292
-.440
.223
.649
-.297
.701
-.336
-.300
.581
-.217
-.396
.337
.376
-.375
-.393
.538
.468
60
L You trust
Insurance Company
.415
.613
for all your financial
needs
M Bank employees
will not push you to
.436
.643
buy an insurance
product
N Your Insurance
Agent will not push
.507
.467
.225
you to buy an
insurance product
Extraction Method: Principal Component Analysis.
a 4 components extracted.
.280
.373
Rotated Component Matrix(a)
1
A Your Insurance
Agent is expert in
insurance product
B Your Insurance
Agent can advise you
on insurance products
C Your Insurance
Agent gives you all
the information
needed
Component
2
3
4
.770
.824
.813
61
D Bank employees
give you all the
information need
E Bank offers
competive insurance
products
F You trust
Insurance Agent more
than bank
G Bank employees
can advise on
insurance products
H Bank employees
have sufficient
expertise in insurance
products
I You trust the bank
employees
J You trust Insurance
Agent
K You trust the bank
for all your financial
requirements
L You trust
Insurance Company
for all your financial
needs
M Bank employees
will not push you to
buy an insurance
product
.714
.298
.207
.773
.253
.628
.454
.549
.261
.287
.794
.218
.292
.742
.850
.402
.216
.292
.737
.834
62
N Your Insurance
Agent will not push
.777
you to buy an
insurance product
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 5 iterations.
Component Transformation Matrix
Componen
t
1
2
3
4
1
.638
.523
.390
.409
2
.172
-.481
.768
-.387
3
-.422
.700
.280
-.503
4
-.620
-.073
.424
.656
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
63
2. Factor Analysis second round – after rejected K
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy.
Bartlett's Test of
Sphericity
Approx. ChiSquare
df
Sig.
.792
875.939
78
.000
Communalities
Initial
A Your Insurance
Agent is expert in
insurance product
B Your Insurance
Agent can advise you
on insurance products
C Your Insurance
Agent gives you all
the information
needed
D Bank employees
give you all the
information need
Extractio
n
1.000
.671
1.000
.728
1.000
.695
1.000
.654
64
E Bank offers
competive insurance
1.000
.644
products
F You trust
Insurance Agent more
1.000
.624
than bank
G Bank employees
can advise on
1.000
.548
insurance products
H Bank employees
have sufficient
1.000
.699
expertise in insurance
products
I You trust the bank
1.000
.652
employees
J You trust Insurance
1.000
.730
Agent
L You trust
Insurance Company
1.000
.592
for all your financial
needs
M Bank employees
will not push you to
1.000
.718
buy an insurance
product
N Your Insurance
Agent will not push
1.000
.670
you to buy an
insurance product
Extraction Method: Principal Component Analysis.
65
Total Variance Explained
Initial Eigenvalues
Extraction Sums of Squared Loadings
Componen
% of
Cumulative
% of
Cumulative
t
Total
Variance
%
Total
Variance
%
1
4.351
33.473
33.473
4.351
33.473
33.473
2
1.765
13.575
47.048
1.765
13.575
47.048
3
1.366
10.509
57.557
1.366
10.509
57.557
4
1.142
8.785
66.342
1.142
8.785
66.342
5
.692
5.319
71.661
6
.650
5.000
76.661
7
.625
4.805
81.466
8
.481
3.697
85.163
9
.460
3.536
88.699
10
.452
3.475
92.173
11
.406
3.121
95.295
12
.349
2.687
97.982
13
.262
2.018
100.000
Extraction Method: Principal Component Analysis.
Rotation Sums of Squared Loadings
% of
Cumulative
Total
Variance
%
2.450
18.847
18.847
2.318
17.831
36.679
2.030
15.616
52.294
1.826
14.047
66.342
Component Matrix(a)
1
A Your Insurance
Agent is expert in
insurance product
.568
Component
2
3
-.489
4
.320
66
B Your Insurance
Agent can advise you
on insurance products
C Your Insurance
Agent gives you all
the information
needed
D Bank employees
give you all the
information need
E Bank offers
competive insurance
products
F You trust
Insurance Agent more
than bank
G Bank employees
can advise on
insurance products
H Bank employees
have sufficient
expertise in insurance
products
I You trust the bank
employees
J You trust Insurance
Agent
L You trust
Insurance Company
for all your financial
needs
.612
-.311
.506
.577
-.321
.508
.695
-.391
.592
.688
-.249
-.459
-.322
.646
-.301
.694
-.333
-.307
.572
-.214
-.415
.327
.367
-.374
-.430
.520
.429
.599
67
M Bank employees
will not push you to
.448
.630
buy an insurance
product
N Your Insurance
Agent will not push
.519
.450
.228
you to buy an
insurance product
Extraction Method: Principal Component Analysis.
a 4 components extracted.
.288
.383
Rotated Component Matrix(a)
1
A Your Insurance
Agent is expert in
insurance product
B Your Insurance
Agent can advise you
on insurance products
C Your Insurance
Agent gives you all
the information
needed
D Bank employees
give you all the
information need
E Bank offers
Component
2
3
4
.773
.826
.815
.724
.305
.792
68
competive insurance
products
F You trust
Insurance Agent more
.281
.453
than bank
G Bank employees
can advise on
.626
insurance products
H Bank employees
have sufficient
.786
expertise in insurance
products
I You trust the bank
.274
employees
J You trust Insurance
Agent
L You trust
Insurance Company
.227
for all your financial
needs
M Bank employees
will not push you to
buy an insurance
product
N Your Insurance
Agent will not push
you to buy an
insurance product
Extraction Method: Principal Component Analysis.
a Rotation converged in 5 iterations.
.575
.253
.297
.228
.745
.852
.733
.834
.781
Rotation Method: Varimax with Kaiser Normalization.
69
Component Transformation Matrix
Componen
t
1
2
3
4
1
.623
.533
.404
.406
2
.201
-.512
.745
-.376
3
-.408
.670
.294
-.546
4
-.636
-.069
.441
.629
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
3. Factor Analysis third round- after rejected F
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy.
Bartlett's Test of
Sphericity
Approx. ChiSquare
df
Sig.
.766
755.507
66
.000
Communalities
70
Initial
A Your Insurance
Agent is expert in
insurance product
B Your Insurance
Agent can advise you
on insurance products
C Your Insurance
Agent gives you all
the information
needed
D Bank employees
give you all the
information need
E Bank offers
competive insurance
products
G Bank employees
can advise on
insurance products
H Bank employees
have sufficient
expertise in insurance
products
I You trust the bank
employees
J You trust Insurance
Agent
Extractio
n
1.000
.675
1.000
.736
1.000
.703
1.000
.653
1.000
.651
1.000
.546
1.000
.701
1.000
.724
1.000
.722
71
L You trust
Insurance Company
1.000
.592
for all your financial
needs
M Bank employees
will not push you to
1.000
.719
buy an insurance
product
N Your Insurance
Agent will not push
1.000
.677
you to buy an
insurance product
Extraction Method: Principal Component Analysis.
Total Variance Explained
Componen
t
1
2
3
4
5
6
7
8
9
10
Initial Eigenvalues
Extraction Sums of Squared Loadings
% of
Cumulative
% of
Cumulative
Total
Variance
%
Total
Variance
%
3.948
32.901
32.901
3.948
32.901
32.901
1.681
14.009
46.910
1.681
14.009
46.910
1.358
11.319
58.229
1.358
11.319
58.229
1.113
9.275
67.504
1.113
9.275
67.504
.678
5.647
73.151
.644
5.368
78.519
.606
5.053
83.572
.479
3.989
87.562
.452
3.769
91.331
.408
3.400
94.731
Rotation Sums of Squared Loadings
% of
Cumulative
Total
Variance
%
2.414
20.120
20.120
2.151
17.923
38.042
2.020
16.837
54.880
1.515
12.625
67.504
72
11
.362
3.020
97.750
12
.270
2.250
100.000
Extraction Method: Principal Component Analysis.
Component Matrix(a)
1
A Your Insurance
Agent is expert in
insurance product
B Your Insurance
Agent can advise you
on insurance products
C Your Insurance
Agent gives you all
the information
needed
D Bank employees
give you all the
information need
E Bank offers
competive insurance
products
G Bank employees
can advise on
insurance products
H Bank employees
have sufficient
Component
2
3
.539
.559
.267
.601
.399
.465
.565
.408
.466
.718
4
-.361
.608
-.279
.653
-.307
.709
-.364
-.442
-.252
73
expertise in insurance
products
I You trust the bank
.553
.223
-.431
employees
J You trust Insurance
.314
.322
-.425
Agent
L You trust
Insurance Company
.473
-.561
.209
for all your financial
needs
M Bank employees
will not push you to
.483
-.611
.250
buy an insurance
product
N Your Insurance
Agent will not push
.550
-.412
.267
you to buy an
insurance product
Extraction Method: Principal Component Analysis.
a 4 components extracted.
.429
.583
.224
.364
Rotated Component Matrix(a)
1
A Your Insurance
Agent is expert in
insurance product
Component
2
3
4
.779
74
B Your Insurance
Agent can advise you
on insurance products
C Your Insurance
Agent gives you all
the information
needed
D Bank employees
give you all the
information need
E Bank offers
competive insurance
products
G Bank employees
can advise on
insurance products
H Bank employees
have sufficient
expertise in insurance
products
I You trust the bank
employees
J You trust Insurance
Agent
L You trust
Insurance Company
for all your financial
needs
M Bank employees
will not push you to
buy an insurance
.831
.819
.724
.304
.798
.636
.254
.271
.788
.221
.287
.782
.845
.227
.732
.835
75
product
N Your Insurance
Agent will not push
.781
you to buy an
insurance product
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 5 iterations.
Component Transformation Matrix
Componen
t
1
2
3
4
1
.662
.509
.452
.313
2
-.121
.611
-.721
.303
3
-.459
.606
.363
-.539
4
-.580
-.025
.378
.721
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
4. Factor Analysis final round
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy.
Bartlett's Test of
Sphericity
Approx. ChiSquare
df
.766
755.507
66
76
Sig.
.000
Communalities
Initial
A Your Insurance
Agent is expert in
insurance product
B Your Insurance
Agent can advise you
on insurance products
C Your Insurance
Agent gives you all
the information
needed
D Bank employees
give you all the
information need
E Bank offers
competive insurance
products
G Bank employees
can advise on
insurance products
H Bank employees
have sufficient
expertise in insurance
products
Extractio
n
1.000
.675
1.000
.736
1.000
.703
1.000
.653
1.000
.651
1.000
.546
1.000
.701
77
I You trust the bank
1.000
.724
employees
J You trust Insurance
1.000
.722
Agent
L You trust
Insurance Company
1.000
.592
for all your financial
needs
M Bank employees
will not push you to
1.000
.719
buy an insurance
product
N Your Insurance
Agent will not push
1.000
.677
you to buy an
insurance product
Extraction Method: Principal Component Analysis.
Total Variance Explained
Componen
t
1
2
3
4
5
6
Initial Eigenvalues
Extraction Sums of Squared Loadings
% of
Cumulative
% of
Cumulative
Total
Variance
%
Total
Variance
%
3.948
32.901
32.901
3.948
32.901
32.901
1.681
14.009
46.910
1.681
14.009
46.910
1.358
11.319
58.229
1.358
11.319
58.229
1.113
9.275
67.504
1.113
9.275
67.504
.678
5.647
73.151
.644
5.368
78.519
Rotation Sums of Squared Loadings
% of
Cumulative
Total
Variance
%
2.414
20.120
20.120
2.151
17.923
38.042
2.020
16.837
54.880
1.515
12.625
67.504
78
7
.606
5.053
83.572
8
.479
3.989
87.562
9
.452
3.769
91.331
10
.408
3.400
94.731
11
.362
3.020
97.750
12
.270
2.250
100.000
Extraction Method: Principal Component Analysis.
Component Matrix(a)
1
A Your Insurance
Agent is expert in
insurance product
B Your Insurance
Agent can advise you
on insurance products
C Your Insurance
Agent gives you all
the information
needed
D Bank employees
give you all the
information need
E Bank offers
competitive insurance
products
.539
Component
2
3
4
.559
.601
.565
.718
.608
79
G Bank employees
can advise on
.653
insurance products
H Bank employees
have sufficient
.709
expertise in insurance
products
I You trust the bank
.553
employees
J You trust Insurance
Agent
L You trust
Insurance Company
-.561
for all your financial
needs
M Bank employees
will not push you to
-.611
buy an insurance
product
N Your Insurance
Agent will not push
.550
you to buy an
insurance product
Extraction Method: Principal Component Analysis.
a 4 components extracted.
.583
Rotated Component Matrix(a)
Component
80
1
A Your Insurance
Agent is expert in
insurance product
B Your Insurance
Agent can advise you
on insurance products
C Your Insurance
Agent gives you all
the information
needed
D Bank employees
give you all the
information need
E Bank offers
competive insurance
products
G Bank employees
can advise on
insurance products
H Bank employees
have sufficient
expertise in insurance
products
I You trust the bank
employees
J You trust Insurance
Agent
L You trust
Insurance Company
for all your financial
2
3
4
.779
.831
.819
.724
.798
.636
.788
.782
.845
.732
81
needs
M Bank employees
will not push you to
.835
buy an insurance
product
N Your Insurance
Agent will not push
.781
you to buy an
insurance product
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 5 iterations.
Component Transformation Matrix
Componen
t
1
2
3
4
1
.662
.509
.452
.313
2
-.121
.611
-.721
.303
3
-.459
.606
.363
-.539
4
-.580
-.025
.378
.721
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.
5. Reliability of new Factors
1. Expertise in insurance agent
82
R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)
Mean
1.
2.
3.
A
B
C
Std Dev
Cases
.9140
.7639
.8048
206.0
206.0
206.0
3.4660
3.8544
3.7282
Statistics for
SCALE
N of
Mean Variance Std Dev Variables
11.0485 4.2806 2.0690
3
Item-total Statistics
Scale
Mean
if Item
Deleted
A
B
C
Scale
Corrected
Variance
ItemAlpha
if Item
Total
if Item
Deleted Correlation
Deleted
7.5825
7.1942
7.3204
1.9419
2.2353
2.1700
.5901
.6399
.6170
.7319
.6730
.6922
Reliability Coefficients
N of Cases =
Alpha =
206.0
N of Items = 3
.7758
83
2. Expertise in bank employees
R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)
Mean
1.
2.
3.
4.
D
E
G
H
Std Dev
Cases
.9341
.9064
.7850
.9433
206.0
206.0
206.0
206.0
3.2524
3.1117
3.2670
3.0534
Statistics for
SCALE
N of
Mean Variance Std Dev Variables
12.6845 7.8073 2.7941
4
Item-total Statistics
Scale
Mean
if Item
Deleted
D
E
G
H
9.4320
9.5728
9.4175
9.6311
Scale
Corrected
Variance
ItemAlpha
if Item
Total
if Item
Deleted Correlation
Deleted
4.5100
4.6849
5.2785
4.3413
.6111
.5863
.5302
.6554
.7258
.7384
.7657
.7017
84
Reliability Coefficients
N of Cases =
Alpha =
206.0
N of Items = 4
.7868
3. Push in selling
R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)
Mean
1.
2.
3.
L
M
N
Std Dev
3.3107
3.4417
3.6019
Statistics for
SCALE
.7781
.7150
.8066
Cases
206.0
206.0
206.0
N of
Mean Variance Std Dev Variables
10.3544 3.4202 1.8494
3
Item-total Statistics
Scale
Mean
if Item
Deleted
L
M
7.0437
6.9126
Scale
Corrected
Variance
ItemAlpha
if Item
Total
if Item
Deleted Correlation
Deleted
1.7786
1.7387
.4992
.6206
.6936
.5552
85
N
6.7524
1.6701
.5274
.6628
Reliability Coefficients
N of Cases =
Alpha =
206.0
N of Items = 3
.7249
4. Trust
R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)
Mean
1.
2.
I
J
3.1117
3.2913
Statistics for
SCALE
Std Dev
Cases
.9171
.9939
206.0
206.0
N of
Mean Variance Std Dev Variables
6.4029 2.6417 1.6253
2
Item-total Statistics
Scale
Mean
if Item
Deleted
Scale
Corrected
Variance
ItemAlpha
if Item
Total
if Item
Deleted Correlation
Deleted
86
I
J
3.2913
3.1117
.9879
.8411
.4458
.4458
.
.
Reliability Coefficients
N of Cases =
206.0
N of Items = 2
Appendix 6: One way Anova
1. One way Anova to Age
Test of Homogeneity of Variances
Levene
Statistic
F1 Expertise in
Insurance
Agents
F2 Expertise in
Bank employees
F3 Push in
selling
F4 Trust
df1
df2
Sig.
.030
2
203
.971
1.155
2
203
.317
1.505
2
203
.225
.046
2
203
.955
ANOVA
87
Sum of
Squares
F1 Expertise in Between
Insurance
Groups
Agents
Within Groups
Total
F2 Expertise in Between
Bank
Groups
employees
Within Groups
Total
F3 Push in
Between
selling
Groups
Within Groups
Total
F4 Trust
Between
Groups
Within Groups
Total
Mean
Square
df
1.405
2
.702
96.097
97.502
203
205
.473
.441
2
.220
99.590
100.031
203
205
.491
.007
2
.004
77.896
77.903
203
205
.384
4.497
2
2.249
130.892
135.390
203
205
.645
F
Sig.
1.484
.229
.449
.639
.010
.990
3.487
.032
Post Hoc Tests
Multiple Comparisons
88
Games-Howell
Dependent
Variable
F1 Expertise in
Insurance Agents
(I) AGE2 age
recoded
1.00 21-30 yrs
2.00 30-50 yrs
3.00 50+ yrs
F2 Expertise in
Bank employees
1.00 21-30 yrs
(J) AGE2 age
recoded
2.00 30-50 yrs
3.00 50+ yrs
1.00 21-30 yrs
3.00 50+ yrs
1.00 21-30 yrs
2.00 30-50 yrs
2.00 30-50 yrs
3.00 50+ yrs
1.00 21-30 yrs
3.00 50+ yrs
3.00 50+ yrs
1.00 21-30 yrs
2.00 30-50 yrs
F3 Push in selling 1.00 21-30 yrs
2.00 30-50 yrs
3.00 50+ yrs
2.00 30-50 yrs
1.00 21-30 yrs
3.00 50+ yrs
3.00 50+ yrs
1.00 21-30 yrs
2.00 30-50 yrs
F4 Trust
1.00 21-30 yrs
2.00 30-50 yrs
3.00 50+ yrs
2.00 30-50 yrs
1.00 21-30 yrs
3.00 50+ yrs
3.00 50+ yrs
1.00 21-30 yrs
2.00 30-50 yrs
* The mean difference is significant at the .05 level.
2.00 30-50 yrs
95% Confidence Interval
Lower
Upper
Bound
Bound
-.48
.08
-.39
.20
-.08
.48
-.17
.38
-.20
.39
-.38
.17
Mean
Difference
(I-J)
-.20
-.10
.20
.10
.10
-.10
Std.
Error
.117
.123
.117
.115
.123
.115
Sig.
.206
.714
.206
.642
.714
.642
-.03
.115
.953
-.31
.24
.08
.03
.11
-.08
-.11
.00
.01
.00
.01
-.01
-.01
-.34(*)
-.09
.34(*)
.25
.09
-.25
.121
.115
.121
.121
.121
.100
.102
.100
.110
.102
.110
.138
.147
.138
.132
.147
.132
.805
.953
.637
.805
.637
1.000
.989
1.000
.994
.989
.994
.039
.805
.039
.146
.805
.146
-.21
-.24
-.18
-.36
-.40
-.24
-.23
-.24
-.25
-.26
-.27
-.67
-.44
.01
-.06
-.26
-.56
.36
.31
.40
.21
.18
.24
.26
.24
.27
.23
.25
-.01
.26
.67
.56
.44
.06
89
6.2 One way Anova to income
Test of Homogeneity of Variances
Levene
Statistic
F1 Expertise in
Insurance
Agents
F2 Expertise in
Bank employees
F3 Push in
selling
F4 Trust
df1
df2
Sig.
.684
2
203
.506
1.122
2
203
.328
.538
2
203
.585
2.207
2
203
.113
ANOVA
Sum of
Squares
F1 Expertise in Between
Insurance
Groups
Agents
Within Groups
Total
F2 Expertise in Between
Bank
Groups
employees
Within Groups
Total
F3 Push in
Between
selling
Groups
Within Groups
Total
F4 Trust
Between
Groups
Within Groups
Total
Mean
Square
df
4.653
2
2.326
92.849
97.502
203
205
.457
7.105
2
3.552
92.926
100.031
203
205
.458
3.421
2
1.711
74.482
77.903
203
205
.367
7.370
2
3.685
128.019
135.390
203
205
.631
F
Sig.
5.086
.007
7.760
.001
4.662
.010
5.844
.003
90
Post Hoc Tests
Multiple Comparisons
Dependent
Variable
F1 Expertise in
Insurance Agents
Tukey HSD
Games-Howell
(I) INCOM22
income recoded
1.00 -10 million
dong
(J) INCOM22
income recoded
2.00 10-20 million
dong
3.00 20+ million
dong
2.00 10-20 million 1.00 -10 million
dong
dong
3.00 20+ million
dong
3.00 20+ million
1.00 -10 million
dong
dong
2.00 10-20 million
dong
1.00 -10 million
2.00 10-20 million
dong
dong
3.00 20+ million
dong
2.00 10-20 million 1.00 -10 million
dong
dong
3.00 20+ million
dong
3.00 20+ million
1.00 -10 million
dong
dong
2.00 10-20 million
Mean
Difference
(I-J)
Std.
Error
Sig.
95% Confidence Interval
Lower
Upper
Bound
Bound
-.23
.107
.081
-.48
.02
-.37(*)
.127
.010
-.67
-.07
.23
.107
.081
-.02
.48
-.14
.135
.545
-.46
.18
.37(*)
.127
.010
.07
.67
.14
.135
.545
-.18
.46
-.23
.105
.075
-.48
.02
-.37(*)
.129
.014
-.68
-.06
.23
.105
.075
-.02
.48
-.14
.135
.545
-.46
.18
.37(*)
.129
.014
.06
.68
.14
.135
.545
-.18
.46
91
F2 Expertise in
Bank employees
Tukey HSD
Games-Howell
F3 Push in selling
Tukey HSD
dong
2.00 10-20 million
dong
3.00 20+ million
dong
2.00 10-20 million 1.00 -10 million
dong
dong
3.00 20+ million
dong
3.00 20+ million
1.00 -10 million
dong
dong
2.00 10-20 million
dong
1.00 -10 million
2.00 10-20 million
dong
dong
3.00 20+ million
dong
2.00 10-20 million 1.00 -10 million
dong
dong
3.00 20+ million
dong
3.00 20+ million
1.00 -10 million
dong
dong
2.00 10-20 million
dong
1.00 -10 million
2.00 10-20 million
dong
dong
3.00 20+ million
dong
2.00 10-20 million 1.00 -10 million
dong
dong
1.00 -10 million
dong
-.17
.107
.268
-.42
.09
-.50(*)
.127
.000
-.80
-.20
.17
.107
.268
-.09
.42
-.33(*)
.135
.039
-.65
-.01
.50(*)
.127
.000
.20
.80
.33(*)
.135
.039
.01
.65
-.17
.106
.261
-.42
.08
-.50(*)
.134
.001
-.82
-.18
.17
.106
.261
-.08
.42
-.33
.145
.063
-.68
.01
.50(*)
.134
.001
.18
.82
.33
.145
.063
-.01
.68
-.09
.096
.588
-.32
.13
-.35(*)
.113
.007
-.61
-.08
.09
.096
.588
-.13
.32
92
Games-Howell
F4 Trust
Tukey HSD
Games-Howell
3.00 20+ million
dong
3.00 20+ million
1.00 -10 million
dong
dong
2.00 10-20 million
dong
1.00 -10 million
2.00 10-20 million
dong
dong
3.00 20+ million
dong
2.00 10-20 million 1.00 -10 million
dong
dong
3.00 20+ million
dong
3.00 20+ million
1.00 -10 million
dong
dong
2.00 10-20 million
dong
1.00 -10 million
2.00 10-20 million
dong
dong
3.00 20+ million
dong
2.00 10-20 million 1.00 -10 million
dong
dong
3.00 20+ million
dong
3.00 20+ million
1.00 -10 million
dong
dong
2.00 10-20 million
dong
1.00 -10 million
2.00 10-20 million
-.25
.121
.096
-.54
.03
.35(*)
.113
.007
.08
.61
.25
.121
.096
-.03
.54
-.09
.093
.570
-.31
.13
-.35(*)
.116
.010
-.62
-.07
.09
.093
.570
-.13
.31
-.25
.117
.087
-.53
.03
.35(*)
.116
.010
.07
.62
.25
.117
.087
-.03
.53
-.37(*)
.126
.011
-.66
-.07
-.39(*)
.149
.023
-.75
-.04
.37(*)
.126
.011
.07
.66
-.03
.159
.984
-.40
.35
.39(*)
.149
.023
.04
.75
.03
.159
.984
-.35
.40
-.37(*)
.117
.005
-.64
-.09
93
dong
dong
3.00 20+ million
dong
2.00 10-20 million 1.00 -10 million
dong
dong
3.00 20+ million
dong
3.00 20+ million
1.00 -10 million
dong
dong
2.00 10-20 million
dong
* The mean difference is significant at the .05 level.
-.39
.167
.055
-.80
.01
.37(*)
.117
.005
.09
.64
-.03
.169
.986
-.43
.38
.39
.167
.055
-.01
.80
.03
.169
.986
-.38
.43
Appendix 7: Result of Independent T test
1. Independent T test to gender
Group Statistics
GENDER8
F1 Expertise 1 male
in Insurance 2 female
Agents
F2 Expertise 1 male
Std.
Error
Mean
.079
90
Mean
3.60
Std.
Deviation
.751
116
3.74
.635
.059
90
3.13
.669
.070
N
94
in Bank
employees
F3 Push in
selling
F4 Trust
2 female
1
2
1
2
male
female
male
female
116
3.20
.722
.067
90
116
90
116
3.38
3.51
3.32
3.11
.584
.638
.747
.852
.062
.059
.079
.079
Independent Samples Test
Levene's Test for
Equality of
Variances
F
F1 Expertise in Equal variances
Insurance
assumed
Agents
Equal variances
not assumed
F2 Expertise in Equal variances
Bank
assumed
employees
Equal variances
not assumed
F3 Push in
Equal variances
selling
assumed
Equal variances
not assumed
1.094
.024
1.559
Sig.
.297
.876
.213
t-test for Equality of Means
t
df
Sig. (2tailed)
Mean
Differenc
e
Std. Error
Differenc
e
95% Confidence
Interval of the
Difference
Lower
Upper
-1.455
204
.147
-.14
.097
-.331
.050
-1.424
173.658
.156
-.14
.099
-.335
.054
-.784
204
.434
-.08
.098
-.271
.117
-.791
197.677
.430
-.08
.097
-.269
.115
-1.439
204
.152
-.12
.086
-.295
.046
-1.455
198.431
.147
-.12
.085
-.293
.044
95
F4 Trust
Equal variances
assumed
Equal variances
not assumed
.474
.492
1.802
204
.073
.20
.114
-.019
.428
1.832
200.907
.068
.20
.112
-.016
.425
2. Independent T test to Education
Group Statistics
F1 Expertise in
Insurance Agents
F2 Expertise in
Bank employees
F3 Push in selling
F4 Trust
EDU1 Education
recode
1 Lower
2 Higher
1 Lower
2 Higher
1
2
1
2
67
139
67
Mean
3.71
3.67
3.25
Std.
Deviation
.722
.676
.742
Std.
Error
Mean
.088
.057
.091
139
3.13
.676
.057
67
139
67
139
3.61
3.38
3.25
3.18
.638
.594
.859
.792
.078
.050
.105
.067
N
Lower
Higher
Lower
Higher
Independent Samples Test
Levene's Test for
Equality of
Variances
F
Sig.
t
df
t-test for Equality of Means
Sig. (2Mean
Std. Error
tailed)
Differenc Differenc
95% Confidence
Interval of the
96
e
e
Difference
Lower
F1 Expertise in Equal variances
Insurance
assumed
Agents
Equal variances
not assumed
F2 Expertise in Equal variances
Bank
assumed
employees
Equal variances
not assumed
F3 Push in
Equal variances
selling
assumed
Equal variances
not assumed
F4 Trust
Equal variances
assumed
Equal variances
not assumed
.539
.048
.031
.438
.464
.827
.860
.509
Upper
.412
204
.681
.04
.103
-.160
.245
.403
122.973
.688
.04
.105
-.166
.251
1.180
204
.240
.12
.104
-.082
.327
1.142
120.194
.256
.12
.107
-.090
.335
2.547
204
.012
.23
.090
.052
.409
2.483
122.369
.014
.23
.093
.047
.414
.549
204
.584
.07
.121
-.172
.305
.533
121.398
.595
.07
.125
-.180
.313
97
[...]...Abstract The main objectives of this study to finding market opportunities for bancassurance in Vietnam Identify whether or not there are opportunities to sell insurance product through the banks Investigating the insurance product that have potential to cross selling, examine customer’s profile to identify potential customer demand, finding the reason why customers would like to buy insurance from... further research in future Key words: Banks, Insurers, Opportunities, Bancassurance, Cross selling, Vietnam ix x Chapter1: Introduction 1.1 Overview of Vietnam insurance sector 1.1.1 Vietnam Insurance sector Vietnam insurance market is develop very rapidly in year nearly, non-life insurance has increase 25% in 2011, estimated 21,500 billion dong and life insurance has increase 16,2% in 2011, estimated... Viet bank to do Bancassurance 1 1.1.2 Vietnam entered WTO and impacts to Insurance sector The insurance market opening commitments of Vietnam in WTO, oversea insurers allowed providing insurance services to insurance companies with capital and foreigners in Vietnam In addition they also offer reinsurance services, international transportation, insurance brokerage, consulting, computing, risk assessment... Trust in banks Customer’s attitude Trust in insurance agent Demographics Gender, Age, Income, Education Analyzing customer’s attitude to bancassurance channel, it only is an factors to finding market opportunities Through customer’s attitude to know their behavior in new distribution and combined with many factors as insurance product, willing to buy, information source to finding solution to develop bancassurance. .. Market opportunities Table 2: The questionnaires included main points: Questions sources Finding the products which customer used from banks Accident insurance Healthcare insurance Motor – commercial vehicle insurance Modified of Lymperolous et al (2004) Travel insurance House property insurance Fire and exploration insurance Marine cargo insurance (including import/export/inland 17 transit) Life insurance... is an indicator that growth potential for the insurance sector through cross selling the bank It is an potential for market insurance by widening the distribution channels Through this study found potential customer demand in New Delhi in India and factors that influence to increasing sales for bancasurance 2.2.4 Konstantinos Lymberopoulos et al(2004) “ Opportunities for banks to cross sell insurance... future growth potential in china’s insurance market that bancassurance was becoming increasingly important The result of authors survey highlighted strongest demand in the bank channel for mor complex products including annuity and investment linked products In survey about customer demand found that there was strong demand for additional cover for existing products, supporting the future growth potential... However Bancassurance is five percent in total insurance premium (Association of Vietnamese Insurers) Bancasurance has developed in Europe for many decades In france for example total premium is over 70% through distribution banking, 10% in Malaysia Insurance penetration (premium as a % of GDP) in 2011, Vietnam has only 1.5%, including nonlife insurance 0.9% and life insurance 0.7% comparison with Singapore... a new opportunities for insurance and banking area and more prospect to additional income for both insurance and banking Bancassurance has grown in many countries in the world and developed in European for many decades The Economic development is a factor that Bancassurance has been in the market Bancasurance is an affective distribution channel in insurance It is simplest the distribution of insurance... trust in insurers and trust in banks to explore the customer attitude in factors analysis There are some insurance products or services which author can modify to survey in Vietnam, may be sale in other countries and not suitable in Vietnam 15 Figure 3: Conceptual model Holding insurance products Customer’s awareness Opportunities to selling insurance through the banks Source of information Specific insurance ... from finding in EFA for customer’s attitude 37 viii Abstract The main objectives of this study to finding market opportunities for bancassurance in Vietnam Identify whether or not there are opportunities. . .FINDING MARKET OPPORTUNITIES FOR BANCASSURANCE IN VIETNAM In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International business by Mr:... D.N(2008) to find opportunities market growth through cross selling insurance products by banks and this researches are adapt author’s research in Vietnam to finding market opportunities for bancassurance
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