Phát triển mô hình bancassurance trong lĩnh vực bảo hiểm nhân thọ tại các ngân hàng thương mại ở việt nam nghiên cứu các mô hình bancassurance tại các ngân hàng thương mại nhà nước tt tiếng anh

1 CHAPTER Research subjects: Research subjects is the development of bancassurance models of State-owned commercial banks in Vietnam OVERVIEW AND RESEARCH METHODS Research scope: 1.1 The urgency of the subject - About space: is limited mainly to the development of bancassurance models of State-owned Bancassurance developed first in France and then in Europe and North America (the number of banks commercial banks in Vietnam in the field of life insurance selling insurance products in the US is 20%, Europe is from 70% to 90%, in France is 100%) In the Asia-Pacific region, bancassurance activities are also popular in countries like Japan, South Korea, and increasingly developing in emerging markets such as China, Malaysia, Thailand (Clarence Wong, Mike Bamahan & Lucia Bevere, 2007) In Vietnam, although appearing since the late 1990s in the form of distribution agents, collection agents In the early 2000s, a number of joint venture models between domestic banks and foreign insurance companies / financial groups were formed, but after a while, the ownership model was changed Most bancassurance models - About time: focusing on the period of 2013-2017, this is the period when most state-owned commercial banks have participated in bancassurance activities in the form of selecting joint venture bancassurance models (except Agribank) 1.4 Research questions Based on the research objectives and overview, the topic needs to clarify the following questions: in the field of Life Insurance have come into operation (Vietin-Aviva in 2011, BIDV-Met life in 2014, MB-Ageas in 2016) or have operated for a long time but only recently exploiting a small part of the potential market (VCLI - What is bancassurance and what are the characteristics of bancassurance? in 2008), the development of distribution agent models is still very modest Therefore, the author has chosen the - What is bancassurance model? What bancassurance models are there? topic "Developing bancassurance model at commercial banks in Vietnam in the field of life insurance: Researching bancassurance model at State-owned commercial banks" is my topic 1.2 Overview of research situation - What is bancassurance model development and how is it implemented? - What factors affect the development of bancassurance models of commercial banks in life insurance? - How these factors affect the development ofbancassurance models at State-owned commercial Bancassurance is no longer a new concept in the field of banking or insurance Since the 1970s bancassurance has begun to be deployed in France and then developed in Belgium, Spain and spread to continental European countries (Benoist, 2002; Fields, Fraser & Kolari, 2007) The concept of bancassurance is discussed and mentioned in many studies The bancassurance models are synthesized and systematized on a practical basis in many studies in different markets including developed markets, emerging markets, from the initial stage of formation to market with many different development models currently banks in Vietnam? - What are the solutions for developing bancassurance model in life insurance field in Vietnam? 1.5 Model and research methods 1.5.1 Research Model In Vietnam, bancassurance development is an inevitable trend, bancassurance activities have brought Internal factors of the bank benefits to both banks and insurance enterprises and customers, especially in the open trend of the economy, integration and development There have been many studies on bancassurance models in Vietnam related to different aspects Theoretically, the studies of the authors Do Minh Hoang (2009), Vo Quoc Dat (2009), Social and economic conditions Trinh Hoang Anh (2010), or the Ministry level research topic of Ngo Viet Trung (2013) are all mentioned Factors from the insurance company Bancassurance model of the bank general theories about bancasurance related to models, products, distribution channels From the overview analysis, it is shown that the research on the topic "Developing bancassurance model in the field of life insurance at commercial banks in Vietnam: Studying bancassurance models at state-owned commercial banks "allows the author to study in depth the development of bancassurance model in the field of life Figure 1.1 Research model of the thesis insurance in Vietnam - a relatively popular activity in the insurance market of other countries but not really Source: Author's proposal developed in Vietnam and there is no in-depth research is absolutely right, there is no overlap with previous studies 1.3 Objectives, subjects and scope of the research Research objective: The research objective of the thesis is based on the results of analyzing the 1.5.2 Research Methods The thesis applies qualitative research methods in combination with qualitative research to clarify questions and research objectives In addition, survey methods, summary methods, and table methods will be development and operation of bancassurance models of the State-owned commercial banks of Vietnam from used to collect and process data for research which to propose solutions to promote development of bancassurance models at state-owned commercial 1.6 Expected research results banks in Vietnam 3 The thesis will achieve some following results: 2.1.3 Life Insurance market - Systematizing and clarifying concepts related to bancassurance activities, bancassurance model, 2.1.3.1 The entities participating in the market factors affecting the development of effective bancassurance model, the correlation relationship between factors affecting the development of bancassurance models in the field of life insurance; - Insurance enterprises: single-member limited liability companies, joint-stock joint stock companies, mutual assistance companies - Experience in developing bancassurance model of banks, financial groups in the field of life - Customers participating in insurance include: individual and corporate customers insurance; - Insurance intermediaries include: institutional agents and personal agents, insurance brokers - Studying the influence of factors on the development of bancassurance models in the field of life insurance of State-owned commercial banks in Vietnam, clarifying the advantages and disadvantages, opportunities and challenges for the effective development of these models in the current context of 2.1.3.2 Life insurance distribution channel Direct distribution channel, intermediate distribution channel, mail distribution channel, telephone distribution channel Vietnam's integration and globalization 2.1.3.3 Factors affecting the development of the life insurance market - Proposing solutions to develop bancassurance models in the field of life insurance in Vietnam effectively with the existing potential - Objective factors: Economic conditions; political and social; regulatory environment; competitive environment - Subjective factors: Market research, product diversification, distribution network, customer service quality, marketing policy 2.2 Introduction about Bancassurance 2.2.1 Bancassurance concept and Bancassurance model 2.2.1.1 Bancassurance concept Bancassurance is a type of business restructuring with mergers and acquisitions In other words, it CHAPTER describes the interface between banks and insurance companies with the main goal of increasing profits and reducing costs THEORETICAL BASIS AND EXPERIENCE BANCASSURANCE MODEL DEVELOPMENT IN LIFE INSURANCE 2.2.1.2 Concept of bancassurance model The bancassurance model is the linkage / link between banks and insurance companies / financial 2.1 General theory of life insurance 2.1.1 Definition and characteristics of Life Insurance 2.1.1.1 Concept of Life insurance Life insurance is a form of insurance to protect against risks related to human life, life and longevity Basically, this concept is defined on the basis of the insured risk, emphasizing the life insurance factor that groups in creating a development of a business activity in a specific form as an agent or an independent legal entity, this link relates to the legal relationship of ownership, cooperation, and rights of the model of linkage between the two parties 2.2.2 Bancassurance model protects people and is related to life, life expectancy 2.1.1.2 Characteristics of Life insurance Similar to other types of insurance, life insurance has all the following characteristics: It is an intangible product, insurance basically adheres to the law of large numbers in mathematics, insurance is a The model of bancassurance is divided into five categories, including: pure distribution model, strategic alliance model, vertical joint venture model: bank or financial group/insurance company owning insurance companies/banking, joint venture model and financial group model 2.3 Bancassurance model development reverse business cycle operation, the price is determined in advance Life insurance is a type of long-term insurance, the term of life insurance policies is usually at least years Life insurance is managed according 2.3.1 The concept of developing Bancassurance model from the bank to the technology of accumulation and basically the fee is determined on the principle of average fee, if the From the bank's perspective, bancassurance development offers the following benefits: Developing insurance period is too short, it will be very difficult for the insurance company to ensure cash flow as well bancassurance helps the bank diversify non-banking services Improving revenue and profit from non- as guarantee obligations to customers banking services Enhancing the reputation and brand of the bank Bancassurance development provides 2.1.2 Life insurance products certain guarantees for the Bank's credit capital Bancassurance development is an opportunity for the Depending on the nature and risks covered, life insurance is divided into five groups: Term life insurance, life insurance, mixed life insurance, investment-linked life insurance and periodical pay insurance development bank to expand its market to other countries 5 1.3.2 Development of life insurance products distributed through Bancassurance channel 2.5.1 Experience in state management for Bancassurance activities Insurance products distributed via bancassurance can be summarized according to many different criteria: Experience in China in 2003, experience in Kenya in the early 2000s, experience in Indonesia, experience in Chile, experience in Morocco, experience in USA, France - Insurance products distributed via bancassurance channel to customers include: products for 2.5.2 Experience in choosing Bancassurance model of banks and financial groups individual and household customers, products for businesses and organizations - Insurance products distributed via bancassurance channel by level of integration include: Experience in Mexico in 2010, experience in USA, experience in Netherlands, experience in Spain 2.5.3 Experience in developing insurance products distributed via Bancassurance channel Traditional products and integrated insurance products such as credit life insurance products, cardholder insurance products… Experience in Asian countries, experience in Latin America, experience in Southern Europe, experience in European countries 2.3.3 Development of Bancassurance's distribution activities 2.3.3.1 Development of distribution channels Currently, some bancassurers can use many different distribution channels depending on the type of bancassurance model selected, including: professional agents, special counselors, salaried agents, bank staff, brokerage companies, online brokers, other channels 2.3.3.2 Develop bancassurer distribution model There are three distribution models that bancassurers can develop: Integrated model: distribution of insurance products through available banking channels; Specialized model (expert): a specialized model that distributes complex insurance products or investment insurance products through product specialists who work on behalf of an insurance company Financial planning model: this model is a team approach only 2.4 Influence factors and criteria to evaluate the development of Bancassurance model in life insurance of commercial banks 2.4.1 actors affecting the development of the Bancassurance model in the field of life insurance 2.4.1.1 The objective factors Globalization and integration, socio-economic conditions, legal environment, cultural environment, competition in the market 2.4.1.2 The subjective factors Differences in corporate culture, coordination of operations, conflicts of member companies in the union, the management mechanism of the union 2.4.2 The criteria to evaluate the development of the Bancassurance model - Financial indicators: Charter capital; equity - Target to the operating network: Number of bancassurance agents - Targets related to operations and market size: Number of bancassurance products, bancassurrance channel commissions, total insurance premiums, new market share 2.5 Experience in developing Bancassurance model in the field of life insurance CHAPTER operating under the Establishment and Operation License No 72 / GP / KDBH issued by the Ministry of CURRENT SITUATION OF DEVELOPING BANCASSURANCE MODELS IN THE FIELD OF LIFE INSURANCE IN VIETNAM: THE RESEARCH THE BANCASSURANCE MODEL OF THE STATE COMMERCIAL BANKS Finance on July 21, 2014, amended for the second time on October 26, 2015 with a charter capital of VND 3.1 Overview of Vietnam's life insurance market and Bancassurance models in the field of life 1,000 billion 3.2.2 Development of Bancassurance models of state-owned commercial banks in Vietnam a Financial capacity: insurance in Vietnam Table 3.1 Charter capital of life insurance companies in Vietnam 3.1.1 The life insurance market in Vietnam Order Company name Establish Charter capital (VND billion) The life insurance market in Vietnam was formed in 1996, when Bao Viet introduced the first two life insurance products: Education security and life saving insurance At this time, Vietnam's economy has made Bao Viet Life Corporation (BVL) 2004 2.500 remarkable development after the renovation policy of the Government in 1986 took effect The Prudential Vietnam Life Insurance Co., 1999 1.136 1.820 transformation of the economic model from centralized subsidized planning to a state-controlled market Ltd economy has brought about certain results, economic growth rates in the 1990s and 2000s an average of over Manulife Co.Ltd (Vietnam) 1999 7%/ year, income per capita improved and reached 835 USD in 2007 from 423 USD in 2001 This is one of AIA Life Insurance Company Limited 2000 1.264 the conditions for the life insurance market of Vietnam to form and develop Following Bao Viet, in 1999 Chubb Vietnam Life Insurance Co., Ltd 2005 1.165 three foreign life insurance companies and joint ventures were licensed to operate in Vietnam, including: Prévoir Vietnam Life Insurance Co., Ltd 2005 1.079 Prudential Vietnam Life Insurance Co., Ltd, Chinfon-Manulife Life Insurance Company Limited (now Dai-ichi Vietnam Life Insurance Co., 2007 2.153 Manulife Vietnam) and Bao Minh Life Insurance Co Ltd-CMG (now known as Daiichi Life Vietnam); in Ltd 2000 added AIA life insurance company By the end of 2017, Vietnam life insurance market has 17 Cathay Vietnam Life Insurance Co., Ltd 2007 3.344 operating companies, including 01 domestic insurance company, 04 joint venture companies operating under Hanwha Vietnam Life Insurance Co., 2008 1.891 2008 600 11 Fubon Vietnam Life Insurance Co., Ltd 2010 1.400 12 Generali Vietnam Life Insurance Co., 2011 2.183 2011 800 2013 1.350 2013 683 the bancassurer model (insurance companies belonging to banks) and 12 companies with 100% foreign capital 3.1.2 Bancassurance models in the field of life insurance in Vietnam By the end of 2016, Vietnam life insurance market had 18 life insurance companies operating, of which 16 companies developed bancassurance models under linked models Distribution agency model with the participation of AIA, Dai-ichi Life, FWD, Hawha Life, Phu Hung Life, Manulife, Prevoir, Prudential, VCLI Models of strategic alliances or strategic distribution include Cathay Life, Chubb Life, Generali, and Aviva The current corporation model has Bao Viet Life Ltd 10 Vietcombank - Cardif Life Insurance Co., Ltd Ltd 13 VietinBank Aviva Life Insurance Co., Ltd 14 Sun Life Vietnam Life Insurance Co., 3.2 Current situation of developing the Bancassurance model of state-owned commercial banks in the field of life insurance 3.2.1 Bancassurance models of state-owned commercial banks Ltd 15 Phu Hung Life Insurance Joint Stock Company 16 BIDV MetLife Life Insurance Co., Ltd 2014 1.000 October 23, 2008 under a joint venture bancassurance model between three partners, the Bank for Foreign 17 FWD Vietnam Insurance Co., Ltd 2007 1.395 Trade of Vietnam (Vietcombank) and BNP Paribas Cardif Group and Bank of East Asia 18 MB Ageas Life Insurance Co., Ltd 2016 1.100 - VCLI is a life insurance company established under the Investment License No 55GP / KDBH dated - VietinBank Aviva Life Insurance Co., Ltd is a joint venture bancassurance model between VietinBank Source: Insurance Administration and Supervision Department of Vietnam and British Aviva International Insurance Company established under the license No 64 GP / KDBH dated Although the financial capacity of bancassurers is still modest compared to the total market capacity, July 29, 2011 of the Ministry of Finance The charter capital of VietinBank Aviva is VND 800 billion, of which However, with the advantage of customer base, foreign joint venture's experience in product development, the capital contribution ratio of VietinBank is 50%, Aviva International contributes 40% and Aviva Ltd 10% risk management and insurance appraisal, business development, Joint-venture insurance companies of state- - BIDV MetLife Life Insurance Co., Ltd is a joint venture bancassurance model between Bank for Investment and Development of Vietnam (BIDV) and MetLife Life Insurance Group, established and owned commercial banks still have safety and stability in the market, Business results belong to the group of 10 fast growing enterprises in the market, this can be seen through the development of market size of enterprises DVCS -0.009 0.295 0.001 0.976 in the following section DVSB 0.239 0.277 0.742 0.389 1.270 b Product development HTPT 0.578 0.268 4,654 0.031 1.782 SP 0.749 0.282 7,072 0.008 2.116 PVBH 0.653 0.282 5,375 0.020 1.922 PBHCT -0.175 0.272 0.413 0.520 Constant -13,505 3,839 12,374 0.000 Table 3.5 Products of Bancassurer models of state-owned commercial banks as of December 31, 2017 Company VCLI Aviva BIDV MetLife Term insurance 3 Mixed life insurance 2 Source: Research results of the author Life insurance - - - Investment-linked insurance - The regression analysis results show the variables (1) MHLK: Link model of banks and insurance Retire - - - companies, (2) HTPT: Market development activities of insurance companies to banks , (3) Product: Health Product; (4) PVBH: Insurance coverage (degree of protection and multi-purpose of products) has a positive Group Insurance 2 effect on operating results (positive beta and P-value is less than 0.05) This shows that improving one of these factors can improve business results of bancassurance models of the current state-owned commercial Nguồn: website of VCLI, MetLife, Aviva banks Meanwhile, the remaining variables stop as if they have no effect on the operation results (P-value is c Development of distribution channel greater than 0.05) Table 3.8 Number of agents operating by December 31 every year of Bancassurer models of state3.3.2 Determine the influence of factors on the development of the Bancassurance model owned commercial banks (2013-2017)\ Company VCLI Aviva 2013 2014 2015 2016 2017 5.255 Regression analysis results show that the variables HTCC, HT, CL and SPPH have a positive impact on the development of the bancassurance model at state-owned commercial banks (positive beta coefficients Quantity (agent) - - - - Speed of increase (%) - - - - - and small P-value more than 0.05) This shows that improving one of these factors can promote better Quantity (agent) 74 470 2.332 2.313 10.617 development of the bancassurance model that state-owned commercial banks are pursuing he remaining Speed of increase (%) - 635 496 (-10) 459 BIDV MetLife Quantity (agent) - 99 1.204 3.065 3.376 Speed of increase (%) - - 1.216 254 110 The whole market of Life Insurance Quantity (agent) 226.133 294.593 404.607 497.635 592.193 Speed of increase (%) - 130 137 123 119 factors not affect the linking activity (P-value is greater than 0.05) 3.4 Evaluate the development of Bancassurance models at state-owned commercial banks 3.4.1 Results 3.4.2 Limitations and causes Source: Vietnam Insurance Association (2013–2017) The data show that bancassurance models of state-owned commercial banks use strategic agent distribution model with associated banks / capital contributors CHAPTER SOLUTIONS TO DEVELOP BANCASSURANCE MODELS IN THE FIELD OF LIFE 3.3 Analyzing the impact of factors on the development of Bancassurance models at state-owned commercial banks INSURANCE IN VIETNAM 4.1 Potential development of Bancassurance models in the field of life insurance in Vietnam 3.3.1 Determine the impact of factors on the operation of the Bancassurance model 4.1.1 Prospects of Vietnam's life insurance market Table 3.13 Regression results on factors affecting the performance of Bancassurance models at stateowned commercial banks B S.E Wald df Sig Exp(B) MHLK 0.93 0.298 9,735 0.002 2.534 LDNH 0.077 0.28 0.074 0.785 1.080 KH1 -0.04 0.252 0.026 0.872 KH2 0.329 0.276 1,418 0.234 1.390 HTCTBH 0.229 0.291 0.623 0.430 1.258 4.1.2 Potential for developing Bancassurance at state-owned commercial banks in the field of life insurance 4.1.2.1 About financial capacity Basically, financial capacity and stability, profitability are factors proportional to the development of bancassurance This factor creates stability for the development of banks, insurance in general and bancassurance model in particular 11 4.1.2.2 About the network In Vietnam, state-owned commercial banks are banks with a network of branches and transaction offices covering the whole country, which can bring advantages in the distribution system and the ability to reach customers when participating bancassurance Compared with joint stock commercial banks operating in Vietnam, state-owned commercial banks have advantages in size, facilities, protection network, brand and experience 4.2 Solutions to develop Bancassurance models in the field of life insurance in Vietnam 4.2.1 Direct solutions 12 Clear reward policy: Reward regimes must be stipulated and applied as part of a cooperation agreement between banks and insurance enterprises 4.2.2.2 Enhancing marketing to promote businesses and products images VCLI, Aviva, BIDV Met Life need to develop a strategy to develop image and brand This strategy may use different measures depending on the company, but may use different measures: (1) hrough mass media such as newspapers, radio, television, movies, posters to create the impression, recognition of the company's image (2) VCLI, Aviva, BIDV Met Life can use events by regularly organizing customer conferences for target groups, thereby promoting the company's image and receiving feedback from customers to research and find the right direction for themselves in the future (3) VCLI, Aviva, BIDV Met 4.2.1.1 Strengthening the linkage model between banks and insurance companies Building a centralized steering model that unifies the connection of the parent bank to the bancassurance model and developing a unified direction from the parent bank to the branches Urging to supervise the Life can also develop material incentive tools for customers to remember and identify the brand for corporate customers as well as regular insurance customers or potential customers 4.4.2.3 Application and technology development combination of branches - general agents and insurance branches in each locality Establishing an appropriate mechanism for sharing customer information while ensuring compliance with laws related to customer information security regulations The process of technology application and development must meet the following requirements: Firstly, it is necessary to ensure a synchronous and transparent element between the insurance company and the bank, which is the condition for the application of the soft and achieve the effect; Second, the application 4.2.1.2 Diversifying distribution channels VCLI, BIDV Met Life, Aviva Vietnam may consider diversifying the distribution channel system by the following channels: Continue to develop agency distribution channels through the banking system with software must ensure throughout the process from application risk assessment, reinsurance (if any), management of claims and insurance payments, risk management and data recovery 4.3 Some recommendations agents who are bank employees; Developing cross-selling channel; Developing online distribution channel (online) distributing life insurance products; Developing brokerage distribution channels, direct sales channels 4.3.1 Recommendations to State management agencies 4.3.2 Recommendations to the State-owned commercial banks of Vietnam 4.2.1.3 Diversifying life insurance products Personal products development: At present, such as situation analysis, VCLI, Aviva have just focused on developing protective products, traditional savings products, BIDV Met Life focusing on universal life insurance and health insurance, Therefore, these bancassurers need to focus on developing new lines of insurance in line with the trend of the global and domestic insurance market including: Developing joint products; Developing affiliate investment unit products; Developing retirement product lines; Group product development; Developing group health insurance CONCLUSION The topic focuses on developing bancassurance model at state-owned commercial banks in Vietnam in the field of life insurance The study shows the trend of integration and restructuring in the field of bancassurance in Vietnam in life insurance: the three current bancassurance models are the presence of leading insurance companies/financial groups of foreign The study also clarifies the 4.2.1.4 Improving the quality of human resources product development, distribution channel development based on taking advantage of the strength of - Enhancing the quality of human resources as employees at VCLI, Aviva, BIDV Met Life state-owned commercial banks and thereby showing the link between the development of models and The subject is state-owned commercial banks in Vietnam The limitations were also clarified in the - Improving the quality of agency human resources of VCLI, Aviva, BIDV Met Life research, focusing on the relationship issues in association, corporate culture, distribution model, quality - Diversifying training methods: first-class learning, classroom training, role-based training, model-based of distribution channels The proposed solutions are considered based on objective conditions in the training, computer software training, job-based training, training through experienced people, trained through near future as well as on the existing limitations of the development of bancassurance models at state- job rotation owned commercial banks Basically, the solutions are suitable to the current context of state-owned 4.2.2 Supported solutions commercial banks in Vietnam 4.2.2.1 Developing appropriate policies for compensation, benefits and commissions However, the thesis still has certain limitations such as the inability to clarify in more detail the executive direction between the parties involved in the bancassurance model, the survey data is Salary policy can be done according to the job and stick to the common income of the industry relatively small resulting in limited comprehension The author is looking forward to receiving the 13 comments and devoted exchanges of scientists and teachers to be able to improve and further develop in the future research process  ... quality, marketing policy 2.2 Introduction about Bancassurance 2.2.1 Bancassurance concept and Bancassurance model 2.2.1.1 Bancassurance concept Bancassurance is a type of business restructuring... Overview of Vietnam's life insurance market and Bancassurance models in the field of life 1,000 billion 3.2.2 Development of Bancassurance models of state-owned commercial banks in Vietnam a Financial... Financial capacity: insurance in Vietnam Table 3.1 Charter capital of life insurance companies in Vietnam 3.1.1 The life insurance market in Vietnam Order Company name Establish Charter capital (VND