Finding market opportunities for bancassurance in vietnam

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 iii 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 v 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 vi 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 vii 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 viii 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 6 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. 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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