Evaluating the development of construction and erection insurance at petrolimex insurance corporation

Master‘s Thesis Le Van Ha – FBA Cohort 2016-2018 Master’s Thesis EVALUATING THE DEVELOPMENT OF CONSTRUCTION AND ERECTION INSURANCE AT PETROLIMEX INSURANCE CORPORATION Author: Le Van Ha Supervisor: Dr Nguyen Hai Duong Hanoi, April 2018 Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page Master‘s Thesis Le Van Ha – FBA ACKNOWLEDGEMENT First of all I would like to sincerely thanks to the University of Nantes and International School, Vietnam National University for organizing this course and facilitate me to participate in Secondly, I would like to express my thanks of gratitude to all foreign and Vietnamese teachers who designed and taught me as my classmates the practical knowledge, all are suitable for my work I would specially thanks to Dr Nguyen Hai Duong for her supervision and support me to choose the topic ―Evaluating the development of Construction and Erection Insurance at Petrolimex Insurance Corporation‖ as well as her helps during of research and writing this Thesis My sincere thanks also goes to my colleagues who gave me useful advices, valuable comments, shared me their knowledge and helped me to complete my research survey Finally, I send my fully thanks to my family who have encouraged me in the pursuit and completion of this course Sincerely thanks with my best regards, Le Van Ha _ Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page Master‘s Thesis Le Van Ha – FBA COMMITMENT I would like to commit that this Thesis has not been submitted to any parties as well as any other degree-granting programs I would also pledge that this Thesis was written by my personal effort All the results, analyzes and conclusions of this thesis (other than those cited) are my study Author Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page Master‘s Thesis Le Van Ha – FBA INDEX CHAPTER I: INTRODUCTION 1.1 Rationales 1.2 The subjectivity and Scope of Research 1.2.1 Subjectivity of Research 1.2.2 Scope of Research 1.3 Literature Review 1.4 Method of Research CHAPTER II: THE SITUATION IN DEVELOPING CONSTRUCTION AND ERECTION INSURANCE AT PJICO 2.1 Overview of Petrolimex Insurance Corporation 2.1.1 History and Development 2.1.2 Organizational Structure and Operations 2.2 The Situation in deploying construction and erection all risk insurance at PJICO 2.2.1 Underwriting Guideline and Claim Process at PJICO 2.2.1.1 Construction and Erection All Risks Insurance – Subject Insured 2.2.1.2 Construction and Erection All Risks Insurance – Products 2.2.1.3 PJICO‘s underwriting guideline 10 2.2.1.4 PJICO‘s Survey Process 12 2.2.1.5 PJICO‘s Claim Process 12 2.3 Business Perfromance of Construction and Erection All Risks Insurance 13 CHAPTER III: FACTORS AFFECTING TO CONSTRUCTION AND ERECTION INSURANCE AT PJICO21 3.1 The external factors Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) 21 Page Master‘s Thesis Le Van Ha – FBA 3.1.1 Legal Framework 21 3.1.2 Economic Development 22 3.1.3 Climate Change 25 3.1.4 Customs and habits 24 3.1.5 Competitive 28 3.2 The internal factors 29 3.2.1 Development of Product 29 3.2.2 Development of Distribution Channel System 29 3.2.3 Human resource development and measures to develop product 31 3.2.4 Reinsurance 29 3.2.5 Other Activities 34 3.3 Survey Analysis 34 3.3.1 The result of survey 34 3.3.2 Analysis and Comment 36 3.3.3 Analysis 39 3.3.4 Assessment 41 3.3.1.4 Achievement 41 3.3.4.2 Existences and causes 41 CHAPTER IV: SOLUTION AND STRATEGY FOR PERIOD 2018-2025 Solution 43 4.1 General Solution 43 4.2 Detail Solution 44 4.2.1 Product Solution 44 4.2.2 Distribution Channel System Development 44 4.2.3 Customer Policies 45 4.2.4 Human Resource Development 41 Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page Master‘s Thesis Le Van Ha – FBA 4.2.5 Reinsurance Arrangement 46 4.2.6 Complete Underwriting Guideline, Claim Process and Management 46 System Recommend 47 Concluded 49 References 50 Appendices Appendix 1: Questionnaire Survey Appendix 2: PJICO‘s underwriting guide Appendix 3: Claim Management Process Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page Master‘s Thesis Le Van Ha – FBA Table Index Table 2.1 Organization structure of PJICO Table 2.2 Market‘s Premium Income from 2015 to 2017 14 Figure 2.3 Market‘s Premium Income from 2015 to 2017 14 Figure 2.4 Market Share 2015 to 2017 15 Figure 2.5 PJICO’s Premium Income from 2015 to 2017 16 Figure 2.6 PJICO‘s Structure of Premium according to 17 Product Lines 2015 - 2017 Figure 2.7 CAR / EAR Premium2015 – 2017 18 Figure 2.8 Loss Ratio for each line of Product 2015 - 2017 20 Figure: 3.1 Vietnamese Economic growth by sectors: 2015 - 23 2017 (%) Figure: 3.2 Estimated Construction value: 2010-2021 Figure: 3.3 Proportion of Cause of Loss in PJICO 2015 - 2017 26 Figure: 3.4 Loss amount base kind of risk 27 Figure: 3.5 PJICO‘s Distribution Channel 30 Figure: 3.6 Proportion of turnover via distribution channel 30 Table: 3.7 Number of Staff & Graduated 31 Table: 3.8 Reinsurance Outward Activities 32 Table: 3.9 Premium for reinsurance inward 33 Table 3.10 The author‘s Survey Result 33 Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) 24 Page Master‘s Thesis Le Van Ha – FBA CHAPTER I INTRODUCTION 1.1 Rationales Insurance industry appears in Vietnam rather late in comparison with the general development of the insurance industry in the world Before 1994, Vietnamese insurance market was dominated by Vietnam Insurance Company only (now called Bao Viet Insurance Corporation) On December 18, 1993, the Decree No 100-CP on insurance business was promulgated by the Government, opening a new stage for the insurance industry in Vietnam, breaking the monopoly on insurance business and specially after the establishment of series of insurance companies: Bao Minh Insurance Company – Bao Minh (1994), Petrolimex Joint Stock Insurance Company - PJICO (1995), Petrovietnam Insurance Company - PVI (1996), Post-Telecommunication Joint Stock Insurance Company - PTI (1998)… Vietnamese insurance market began effervescently Citizens and companies have been approached and known more about insurance, many new products were launching to meet the market demand With the general development trend of the insurance market at that time, Petrolimex Joint Stock Insurance Company, now called Petrolimex Insurance Joint Stock Corporation – PG Insurance (PJICO) was established in 1995, it was known as the first joint stock insurance company in Vietnam With a history of 22 year operating in non-life insurance business, Petrolimex Insurance Joint Stock Corporation has made considerable contributions and has had big successes in insurance market, is one of five biggest non-life insurance companies in Vietnam With the development of the economy and expanded market, PJICO always explore to develop new products to meet the demand of the domestic market as well as the abroad Besides the development of new product lines, PJICO maintains to write the traditional and profitable products Construction All Risks (CAR) and Erection All Risks (EAR) insurances are two traditional products that PJICO has written from the beginning and they are two lines of products that bring high efficiency in PJICO‘s business However, they are the difficulty Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page Master‘s Thesis Le Van Ha – FBA product lines and the insurer(s) has faced with many problems in underwriting as well as in claim processing and management Specially, the Circular No 329 / 2016/TT-BTC issued by the Ministry of Finance is compulsory guideline which has taken effect from 1st March, 2017 brings many changes in insurance activities in construction and erection sections in Vietnam At my present position at work, I decided to choose the topic ―Evaluating the development of Construction and Erection Insurance at Petrolimex Insurance Corporation‖ to research I believe that based on the deeply research of the topic, the thesis may proposes good solutions and strategy for PJICO to write efficiently these product lines in period 20182025 1.2 The Subjectivities and Scope of Research 1.2.1 Subjectivity of Research The thesis analyzes the business performance of Construction and Erection Insurance lines at PJICO base on evaluating the effective factors and the development of market in Vietnam, point out positive and negative effects of factors to the business performance of construction and erection Insurance lines of PJICO; propose solutions to correct negative effects to develop construction and erection insurance at PJICO Based on the researched objectives, the thesis will answer the following questions: - How does construction and erection insurance develop in Vietnam Insurance market? - How is the status of construction and erection insurance at PJICO? - What are the factors affected to the construction and erection insurance in Vietnamese market as well as affected to PJICO? - How these factors affect to the business performance in the construction and erection insurance of PJICO? - What are the solutions to constraint and reduce the negative impact of factors affecting to construction and erection insurance at PJICO in the coming time? Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page Master‘s Thesis Le Van Ha – FBA The subject of the research is business performance in construction and erection insurance of PJICO, including product development, risk management, distribution and other support activities 1.2.2 Scope of Research The scope of the research focuses on analyzing the factors affecting to the development these lines of product at PJICO, assessing the factors that influent to the increase market share and propose solutions to develop these products efficient at PJICO in period 2018-2025 1.3 Literature Review Construction All Risk and Erection All Risks are the traditional products which written by all Non-life Insurance Companies in Vietnam, they are also attractive the researcher My topic ―Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO)‖ is same as the below topics In 2007, Nguyen Thuc Anh class A2-QTKD at Foreign Trade University studied topic ―PJICO‘s Construction All Risks and Erection All Risks – Situation and Solution‖ The subject researched in this thesis was same my topic, however the studied figures was too old (2002-2006) and there are many changes in insurance market from 2007 up to now and the solution was not suitable for PJICO to increase market share at this time "Building strategy for Petrolimex Insurance Corporation (PJICO) to increase the market share in respect of property and engineering insurance in period 2012-2020" was researched in 2014 by Nguyen Thi Huong Giang – Class M25-FBA-VV5 – International School – Vietnam National University This research mentioned about all lines of product of property insurance and engineering insurance that construction and erection all risk insurance included The Data analysis in the topic was old and the insurance market has been changed and developed remarkable since then The difference between my research and the previous theses are that I studied two special lines of product and how does the changes in Government Policy on this line of product effect to PJICO‘s business Especially the Circular 329/2016/TT-BTC took effect Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 10 Master‘s Thesis Le Van Ha – FBA 7.4 Services Quanlity 7.5 Improving Staff‘s knowledge 7.6 Infrastructure What criteria that effect to client‘s choice and (from to – increase from less decision importance to very importance) – average point 8.1 Company‘s Prestige 5.5/6 8.2 Good Services 5.5/6 8.3 Distribution Chanel 3.5/6 8.4 Acceptable Premium 5/6 8.5 Professional Staff 5/6 8.6 Others 2/6 PJICO's competency of competition (from to – increase from less importance to very importance) – average point 9.1 Company‘s Prestige 4/6 9.2 Services (before and after issuing policy) 4.5/6 9.3 Distribution Chanel 4/6 Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 45 Master‘s Thesis 10 Le Van Ha – FBA 9.4 Premium Competition 5.5/6 9.5 Professional Staff 5/6 8.6 Others 2/6 PJICO‘s Risks Management Liability 26/30 good Table 3.10: The author‘s Survey Result Source: author's survey 3.3.3 Analysis The first two questions surveyed the demand and opportunity of construction / erection insurance in Vietnam in general and locally in particular 100% of respondents said that the demand for construction insurance will continue to increase as demand for construction / erection increases in the coming years This demand is based on the growth rate of the construction industry as well as the speed of urbanization This point of view coincides with the analysis of the impact of economic conditions on construction insurance in chapter III, point 3.1.2 in my thesis It was required to evaluate about the importance level of ―Legal & State‘s Policy‖, ―Economic Conditions‖, ―Client‘s Demand‖, ―Company‘s Policy‖, ―Diversify Product‖ and ―Services Quality‖ in the third question - All factors were evaluated from ―Importance‖ level and higher and ―Services Quality‖ evaluated as ―Very importance‖ because they all said that insurance is service industry and it is special product that users can not touch, cannot see until unfortunate happened Hence ―Service Quality‖ is very importance - ―Legal & State‘s Policy‖: All managers and underwater think that this point is ―very importance‖ Base on their position, they see the important level of legal corridor as well as the State‘s policies The promulgation of Circular 329/2016/TT-BTC is example This directly affects the construction insurance business, design consultants Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 46 Master‘s Thesis Le Van Ha – FBA and workman compensation About its affect is analyzed in Chapter III, point 3.1.1 in this Thesis as well as mentioned in the fourth question of my survey For the question ―How think about the impact of Legal & State‘ Policy to construction / erection insurance activities, specially the effect of Circular 329/2016/TT-BTC Most correspondents think that this Circular is positive and it may improve the market condition while the competition has been out of control This Circular is Compulsory, but its subjects are project with construction / erection value under 700 billion Vietnamdong Hence this affect is limited In addition, some respondent argue that Circular 329/2016/TT-BTC mainly regulating on government projects, the project management boards implement the state budget while the private projects not affect much As regulated in Circular 329/2016/TT-BTC, the project with construction value exceed 700 billion Vietnamdong, the insured and the insurer can negotiate or applied terms and conditions or they can follow Reinsurance Leader‘s terms The results of the survey are similar to my analysis in Chapter III, point 3.1.1, premium and deductible for the project that its worth exceed 700 billion Vietnamdong may be lower than the smaller one The sixth question ask about the market segmentation, which kind of project PJICO should focus much on? As underwiter position, PJICO should focus on all kind of projet as mentioned above in order to diversify product However, there are a few ideas suggest PJICO should focus on private corpertions‘s project because of quick disbursement process, the premium can be obtained in time This idea rised from the real in Vietnam past time, PJICO could not collect premium because many State‘s projects have been delayed and extended insuance period without additional premium, in addition the premium could not collect on time In the seventh question, six factors have been given and required to put in order from to with highest point is very importance and PJICO have to pay attention to They are Financial Policy, Human Resource Policy, Product‘s Quality, Services Quanlity, Improving Staff‘s knowledge and Infrastructure The above range in survey result point 3.3.2 based on the result collected from 30 questionairs The most importance is Services Quality, then Financial Policy, the third is Human Resource Policy, after that Product‘s Quality then Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 47 Master‘s Thesis Le Van Ha – FBA Improving Staff‘s knowledge, final is Infrastructure This is relatively reasonable because the insurance is a special product, there is no trial product so the quality of service affects the decision of the customer This is also the reason why I asked question No.8 on what factors affect the customers choice when using the construction erection insurance and the impact that decision The result is quite identical to the above question, most opinion think that good service is a very important factor affecting to client‘ choice the company's reputation has the same score with the quality of service Insurance premiums and staff‘s professionalism also have the same impact 3.3.4 Assessment 3.3.4.1 Achievement Success in attract invetment and transfer 20% stock to foreign strategic partner - Samsung Fire and Marine Insurance Company Limited, this result is efforts of PJICO‘ staff to create good business results This even helps to promote the development of PJICO in the coming time PJICO retain its position 5/30 in the market for both revenue and premium imcome of construction and erection insurance remain this position Maintaining this position is due to factors below: - The development of the economy as well as strong growth of the c - onstruction industry in recent years, - PJICO‘s reputatio in the market - High qualification of staff Apply IT in underwriting process 3.3.4.2 Existences and causes Even PJICO can remain the position in the market however revenue and market share and are reduced This caused by: - the competion of the market Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 48 Master‘s Thesis - Le Van Ha – FBA removing of cadres in big subsidiaries It has not been able to exploit this business through other distribution channels such as banks and brokers, but mainly focus on direct chanel The main reason is the complexity of these product lines Beside that the competition over these channels is too great, the terms of the terms are sometimes not standardized because the broker actively adds unrelated terms IT systems are not synchronized, only serve the underwriting process but incompleted application for other module Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 49 Master‘s Thesis Le Van Ha – FBA CHAPTER IV SOLUTION AND STRATEGY FOR PERIOD 2018-2025 Solution 4.1 General Solution Based on the analysis of PJICO‘s business results in chapter II, point 2.2, although PJICO's revenue grew,in recent years however the growth rate were lower than the market‘s it led to losing market share Especially for construction / erection product lines, both were growing negative in both financial year and underwriting year, while these are two of the most productive lines Therefore, it is importance for PJICO to have solutions to improve the annual growth rate, at least complete the plan of the year, regain lost market share for construction and erection all risks, in order to achieve this goal, the overall PJICO needed: - Have strategy to develop products in short-term as well as medium-term and longterm - Provide professionally and effectively services to customers to meet international standards and practices in insurance business Improve the quality of compensation and customer service - Expand distribution channels / sales networks, collect information as well as PR for products and services - Improving prestige in insurance market, create brand-named and image as professional insurance company, dedicated to the clients - Create a strategy to develop human resource via recruitment and training policy Offer good working environment and high salary to retain key persons and attract qualified persons from the market Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 50 Master‘s Thesis - Le Van Ha – FBA Completing IT system to support managing the risks from the beginning at the end of insurance activities include collecting project‘s information, issuing insurance policy, services during insurance period, making survey, claim settlement, etc., as well as create management tools to control the risks and ensure safety the operation activities - Improving competing capability by getting Certification of Financial Rating that Ranged by Standard & Poor or AM Best - Focus on groups of project with low exposure risk and have efficiency 4.2 Detail Solution 4.2.1 Product Solution As mentioned in chapter II, point 2.1.2, it is difficult to create new product because these are two standard one, however it is easy to make the difference between PJICO and other companies through apply sub-terms and sub-conditions as well as sub-limit for them Hence, for each case PJICO should use this point to improve the competing capability Beside of making the difference, PJICO should improve service quality including before and after writing the risks, create brand-named as well as prestige and doing full liabilities as committed 4.2.2 Distribution Channel System Development In fact, due to the complexity of these products, it is advisable to develop the direct distribution channel hence the client will deal directly with PJICO from the beginning of collecting information and claim settling All processing the information will be updated immediately However, according to the market development, clients would like to have good service, competitive price, etc… so clients prefer to choose broker channel and broker is on behalf of the insured will deal with the insurers to get quotation, they also are client‘s advisor Hence PJICO should have close and long-lasting relationships with all brokers in the market Almost construction / erection projects get loans from the banks and develop bancassurance channels is one of efficiencies distribution channel PJICO has more advantage than other companies because one of PJICO‘s shareholders is Joint Stock Commercial Bank Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 51 Master‘s Thesis Le Van Ha – FBA for Foreign Trade of Vietnam (Vietcombank) Besides that, PG Bank is a member of Petrolimex Group Utilizing current sources to improve PJICO's premium income Writing these kind of product through traditional distribution channel likes agents, is not promoted because they are not retail products, however utilizing their relationships is importance to approach the investors Therefore, PJICO should have training course for agents in respect of these products and if necessary PJICO should send staff to assist agents 4.2.3 Customer Policies PJICO should built and promote the brand, push up marketing activities to identify the brand-named easily In order to complete this goal, PJICO have to: - Improving business benefit, grantee that provide the best services to clients, create the prestige, settle the claim satisfactorily and immediately, exactly what was committed - Beside, PJICO should build a corporate culture as appearance as a PJICO active and professional - Have suitable strategies for the market development, set up seminar for customers as organize regular outside activities for customers to promote relationship 4.2.4 Human Resource Development PJICO should create a human resources with good skill, enthusiastic, actively by training the available staff and attracting human resource with experiences in management from market Having upper training courses to raise knowledge as well as improving foreign languages skill for all staff Take staffs to join all seminars/Workshops in Vietnam and other countries in the World in order to update the market change as the international situation Taking a chance and having good policy to the best staff who have been working for PJICO for long time Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 52 Master‘s Thesis 4.2.5 Le Van Ha – FBA Reinsurance Quickly and effectively arrange reinsurance program is the way of enhancing the original competitiveness, facing the fierce competition in the market today, PJICO‘s reinsurance department should promote relationship with reinsurance companies as other insurance companies to get prompt and timely support, Negotiate with the treaties Leader for agreement to cede automatically the policies that use Circular 329/2016/TT-BCT in treaties 4.2.6 Complete Underwriting Guideline, Claim Process and Management System Changing and completing ISO process in underwriting that suitable with IT system process as well as survey and claim process as others related process to server business activities effectively Completing Information and Technology (IT) system and other modern technology application in management work as well as support the client promptly and effectively Opening relationships with all Insurance companies not only in domestic but also in oversea in order to exchange experience Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 53 Master‘s Thesis Le Van Ha – FBA Recommended In Viet Nam, business activities of insurance companies governed by the Insurance Supervisor and Authority – Ministry of Finance of Vietnam, and supported from Vietnam Assurance Association, so solutions to boost result of business activities development process and management capacity in general and installation construction insurance having maximizing effectiveness in case of all the above mentioned sector ministries take care and accepted: To The Insurance Supervisor and Authority – Ministry of Finance of Vietnam - Supporting both the Insured and the Insurer by issuing instruction circulars, insurance wording in both Vietnamese and English version I order to meet the demand of foreign companies operate in Vietnam as well as the oversea Reinsurers to understand clearly Vietnamese Law - The regulations application aim to the orientation, the way, and it is suitable with international market in case of they are compulsory regulations, a characteristic of insurance Specially, installation construction insurance with the Reinsured from other countries For mandatory regulations, besides issuing policies, they promulgate insurance institutions that regulate all the level of penalty to illegal insurance companies - To combine with Vietnam assurance association in considering and adjusting circular No.329/2016/TT-BTC dated 26/12/2016, effecting from 1/3/2017 suitable for reality business situation of insurance companies, aim to remove difficulties to all domestic insurance companies in arrange reinsurance for all the accepted risks according to this circular To Viet Nam Assurance Association - Understanding and catching on problems, inadequate in doing business process, that all non-life insurance companies in Viet nam meeting and then having solutions to solve the problems of temporary policy mechanisms as long time in the request the State Management Departments to issue suitable circulation instructions Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 54 Master‘s Thesis - Le Van Ha – FBA To plan courses of training to improve and update the insurance knowledge for insurance companies and this is the bridge between insurance companies from Vietnam and other countries in the World Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 55 Master‘s Thesis Le Van Ha – FBA CONCLUDED Nowadays, Ii the intense competition environment, all non-life insurance companies in Vietnam are trying their best to increase their market share in Vietnam that bringing good benefit to them From 2014 to 2017, PJICO ranked fourth in revenue, third in experience in the non-life insurance market and with member companies system across the countries, PJICO need an overall strategy for business to exist and develop in sustainable way My Thesis topic ―Evaluating the development of Construction and Erection Insurance at Petrolimex Insurance Corporation‖ has concentrated to analysis about business strategy of important insurance services bring benefit for PJICO, and through the evaluation impact factors in increasing market share includes products development, risks managements, distribution channels development and other support activities in order to make incremental strategy in property –technical insurance market share from 2018 to 2025 The Thesis has solved problems as follows:  To analyze the role of construction and erection insurance at PJICO and competition for this products in the market  To analyst development strategy for dominating the insurance market as increasing market share  Showing disadvantage of construction and erection faced with And from that building incremental strategy to improve market share of costruction and erection insurance for stage from 2018 to 2025 in a technical and scientific way As the same time, it has requests to management authority as Department of Insurance Management and Supervision – Finance Ministry and Vietnam Assurance Associations to get more suitability business environment in maximizing the effects from all the given solutions Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 56 Master‘s Thesis Le Van Ha – FBA References The Decree No 100-CP issued by Government Dated 18/12/1993 Vietnamese Insurance Law No 24/2000/QH10 Dated 09/12/2000 Vietnamese Insurance Adjustment Law No 61/2010/QH12 Dated 24/11/2010 Decree No 119/2015/NĐ-CP issued by Government Dated 13/11/2015 Circular No 329/2016TT-BTC issued by Ministry of Finance Dated 26/12/2016 Vietnamese Construction Law No 50/2014/QH13 Dated 18/6/2014 Decree No 45/2015/NĐ-CP issued by Government Dated 12/5/2015 Decree No 18/2015/NĐ-CP issued by Government Dated 12/2/1015 Insurance Principles and Practice Complied by Dr David Bland Munich Re Construction All Risk Wording – Munich Re‘s Guideline Munich Re Erection All Risk Wording – Munich Re‘s Guideline PJICO‘s Annual Reports from 2015-2017 Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 57 Master‘s Thesis Le Van Ha – FBA Websites: http://luanvan.net.vn/luan-van/khoa-luan-bao-hiem-xay-dung-va-lap-dat-tai-cong-ty-cophan-bao-hiem-petrolimex-pjico-thuc-trang-va-giai-phap-64724/ http://www.xaydung.gov.vn/en/web/guest/tin-noi-bat/-/tin-chi-tiet/5JJb/63/343342/boxay-dung-tong-ket-cong-tac-nam-2016-trien-khai-nhiem-vu-ke-hoach-nam-2017.html 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http://thoibaotaichinhvietnam.vn/pages/kinh-doanh/2017-11-29/doanh-nghiep-baohiem-nao-dang-dung-dau-thi-truong-50951.aspx https://baomoi.com/kinh-te-the-gioi-nhin-lai-nam-2017-va-trien-vong-nam2018/c/24677168.epi http://tapchitaichinh.vn/nghien-cuu trao-doi/trao-doi-binh-luan/kinh-te-viet-nam-nhin- Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 58 Master‘s Thesis Le Van Ha – FBA lai-nam-2017-va-trien-vong-nam-2018-135499.html https://www.imf.org/en/Publications/WEO/Issues/2017/09/19/world-economic-outlookoctober-2017 http://vietnamfinance.vn/5-ong-lon-bao-hiem-phi-nhan-tho-dat-tong-doanh-thu-hon21770-ty-dong-20170411095837371.htm http://www.pvi.com.vn/tin-tuc-new/tin-tuc-chung/thi-truong-bao-hiem-viet-nam-nhieuco-hoi-phat-trien-trong-thoi-ky-hoi-nhap.html http://www.gso.gov.vn/default.aspx?tabid=382&idmid=&ItemID=18667 http://www.baoxaydung.com.vn/news/vn/thoi-su/nganh-xay-dung-nam-2017-tangtruong-cao.html http://doanhnghiepvathuonghieu.vn/nam-2021-quy-mo-thi-truong-xay-dung-viet-namdat-14-ty-usd-14261.html http://vinare.com.vn/vn/Tin-tuc-Su-kien/Thong-Tin-Thi-Truong/Nhu-cau-tang-cuongquan-ly-rui-ro-lu-lut-tai-Viet-Nam.aspx http://thoughtleadership.aonbenfield.com/Documents/20120314_impact_forecasting_tha iland_flood_event_recap.pdf http://dichvu.nioeh.org.vn/suc-khoe-moi-truong/bien-doi-khi-hau-tai-viet-nam-va-cachien-tuong-thoi-tiet-cuc-doan http://sggpnews.org.vn/nature/weather/vietnam-losses-over-vnd-7-trillion-due-to-twotyphoons-mirinea-nida-28680.html https://www.reinsurancene.ws/typhoon-damrey-drives-1-billion-loss-vietnam/ http://english.vov.vn/trade/vietnam-construction-industry-shows-potential-342906.vov https://www.statista.com/topics/1467/global-economy/ Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 59 ... to construction and erection insurance at PJICO in the coming time? Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page Master‘s Thesis... as checking the legal status of all documents If there Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 19 Master‘s Thesis Le Van... was under 30% and these are two of profitable products Evaluating the Development of Construction and Erection Insurance at Petrolimex Insurance Corporation (PJICO) Page 26 Master‘s Thesis Le Van