Research on factors affecting efficiency of hull insurance in petrolimex joint stock insurance corporation pjico

Cohort 2016 – 2017 MASTER THESIS RESEARCH ON FACTORS AFFECTING EFFICIENCY OF HULL INSURANCE IN PETROLIMEX JOINT STOCK INSURANCE CORPORATION (PJICO) Author : Ngo Thi Nhi Thuy Advisor : Nguyen Thi Hai Duong, PhD Hanoi, June 2017 TABLE OF CONTENTS LIST OF TABLE iii LIST OF FIGURES iv INTRODUCTION CHAPTER I: INTRODUCTION TO PETROLIMEX JOINT-STOCK INSURANCE CORPORATION AND HULL INSURANCE MARKET 1.1 Introduction to Petrolimex Joint-Stock Insurance Corporation (PJICO) 1.2 Introduction to Hull Insurance Market 1.2.1 Hull Insurance History 1.2.2 Ship Insurance in PJICO 11 CHAPTER II: HULL INSURANCE AND THEORITICAL FRAMEWORK 21 2.1 Concepts in Hull Insurance 21 2.2 Claim Settlement 24 2.2.1 Types of Losses in Hull Insurance 24 2.2.2 Loss Adjustment 25 2.2.3 Principles of Claim Settlement in Hull Insurance 25 2.2.4 Exclusion in Hull Insurance 25 2.3.5 Reduction in Indemnity 26 2.3 Theoritical Framework 27 2.3.1 Factors Affecting Hull Insurance Efficiency 27 2.3.2 Data 29 CHAPTER III: ANALYSZE AFFECTING OF FACTORS TO HULL INSURANCE OF PETROLIMEX JOINT-STOCK INSURANCE CORPORATION 31 3.1 Descriptive statistics 31 3.1.1 Affect of PJICO’s trademark 31 3.1.2 Affect of PJICO’s financial capacity 32 i 3.1.3 What you think about Ship Insurance Product of PJICO? 33 3.1.4 Affecting of Service Quality on Hull Insurance of PJICO 39 3.1.5 Factors are need to focus 45 4.2 Assessment and Evaluation of Interviewed Experts 47 CHAPTER IV: RECOMMENDATIONS AND SOLUTIONS TO IMPROVE HULL INSURANCE EFFICIENCY OF PETROLIMEX JOINT-STOCK INSURANCE CORPORATION 49 4.1 Recommendations 49 4.2 Solution 50 4.2.1 Improving Service to Take Care of Clients 51 4.2.2 Well Carrying out the Claim Adjustment 51 4.2.3 Enhancing Competitiveness and Image of PJICO 54 CONCLUSION 56 REFERENCES 57 APPENDIX 59 ii LIST OF TABLE Table 1.1 Brief financial reports 2013 – 2016 Table 3.1 Evaluation affecting of PJICO’s trademark 31 Table 3.2 Evaluation affecting of PJICO’s financial capacity 32 Table 3.3 Evaluation affecting of PJICO’s product diversification 34 Table 3.4 Evaluation affecting of PJICO’s product coverage 35 Table 3.5 Evaluation affecting of PJICO’s product endorsements 36 Table 3.6 Evaluation affecting of PJICO’s product premium 37 Table 3.7 Evaluation affecting of PJICO’s product terms and conditions 38 Table 3.8 Evaluation affecting of PJICO’s information provision 40 Table 3.9 Evaluation affecting of PJICO’s professionalism 40 Table 3.10 Evaluation affecting of PJICO’s professional knowledge 41 Table 3.11 Evaluation affecting of PJICO’s supporting and guiding clients 42 Table 3.12 Evaluation affecting of PJICO’s supporting in claim settlement 42 Table 3.13 Evaluation affecting of PJICO’s taking care of clients after issuing policies 43 Table 3.14 Evaluation affecting of PJICO’s insurance procedure 44 Table 3.15 Evaluation affecting of PJICO’s claim settlement procedure 44 Table 3.16 Evaluations of PJICO’s Specialists 46 Table 4.1 Result of Hull Insurance Business of PJICO (2013-2016) 49 iii LIST OF FIGURES Figure 1.1 Organizational Structure of PJICO Figure 1.2 Premium Revenue Structure of PJICO in 2016 11 Figure 1.3: Revenue share of non-life insurance market in 2016 12 Figure 2.1 Factors effect Hull Insurance Efficiency 28 Figure 3.1 Evaluation of PJICO’s trademark 32 Figure 3.2: Evaluation of financial capacity of PJICO 33 Figure 3.3: Evaluation of the diversification of products in PJICO 34 Figure 3.4: Evaluation of coverage in PJICO 35 Figure 3.5: Evaluation of Endorsements in PJICO 36 Figure 3.6: Evaluation of premium in PJICO 38 Figure 4.7: Evaluation of terms and conditions of PJICO 39 Figure 3.8: Evaluation of service quality of PJICO 45 Figure 3.9: Aspects that PJICO should pay attention to improve the company's capabilities 46 iv v INTRODUCTION Rationales Accident and risk are factors always existing in people lives Those accidents and risks can occur due to objective conflict between people and nature or known as natural disasters Also, risks can arise from manufacture activities In term of marine industry, a vessel carrying cargo from this port to another may face a lot of risks such as stranding, collision, fire, wet cargo due to storms, accident and/or sickness of crew… These risks can cause other risks, leading to serious losses The companies that suffers the losses is affected It may have to bear small losses making the business and manufacture interrupt while big losses can make the companies going bankrupt totally In order to face unforeseen losses, the best way is using Insurance It means that the Insured transfer their risks to insurance companies (Insurer) Because of that, insurance has been appeared Insurance demand has been increasing when economy and living standards improve Thank to economic as well as cultural exchange among countries in the world, the insurance has been developed and expanded rapidly ―Insurance is a guaranty of the insurer to compensate to the insured in case of loss under scope of cover provided the Insured pay expenses for himself or the Third party‖ "Insurance is an activity whereby the insurer makes a statutory obligation to pay indemnity for the insured in the event of the insured event provided that the other party pays a premium to the insurer‖ In the insurance contract, the insured is responsible for paying premium and the insurer is responsible for settling claim in case of loss Through underwriting hull insurance, there have been many advantages, helping Ocean transportation companies/Owners of ships to keep calm and stabilizing finance after the loss This contributes to the general development of economy The service quality has contributed considerably to the growth and efficiency of insurance industry In comparison with other types of industries, insurance is still young industry but it has full potential to develop further During the implementation of insurance, there are still lots of challenges and difficulities that need more researches In many consecutive years, hull insurance was not profitable due to economi crisis in general as well as the downsizing of Vietnam shipping industry in particular However, by the end of 2016, the hull insurance has been carried out by 29 non-life insurance companies During implementing this line of insurance, new companies always would like to attract clients with their policies such as reducing premium or increasing bonus to their clients Insured objects of this line of insurance often have big value which is up to hundreds of billions Only some clients participate under compulsory aspect Normally, all clients are aware fully the benefit and necessity of insurance They would like to recieve support for their business after the loss In addition, they look forward to receiving necessary consulting opinions from insurers for their business The clients would like to renew the contract with insurers based on service quality besides premium rate and bonus/expenses For all above reasons, during my internship in Hull and P&I Department of PJICO, I decide to choose the topic “Research on factors affecting Efficiency of Hull Insurance in Petrolimex Joint Stock Insurance Corporation (PJICO)” for my thesis With the above topic, the research will focus on analyzing and showing measures, solutions to upgrade the efficiency of Hull insurance in development of PJICO Research Objective Through conducting survey, investigating and assessing all factors affecting the efficiency of Hull insurance in PJICO, the research objective is to deeply study, analyze and evaluate in order to propose solutions to enhance the efficiency of hull insurance, contributing to the development of PJICO Subject and Scope of Research Subject of research: service quality and affecting of factors on the service quality in hull insurance of PJICO Scope of research: the scope concentrates on the hull insurance of PJICO during period of 2013 to 2016 Author make interviews persons who are representatives of ocean transportation companies, owners of ships in some provinces of Vietnam who have been using Hull insurance products of PJICO Research methodology The research methodology applied in the thesis are qualitative analysis, survey (investigating, interviewing) and statistics analysis to make clear the objectives of the research However, the research is carried out on small number of clients (not all) of PJICO Therefore, results of investigation/interview reports have not shown fully and objectively It will be difficult to examine the variable corelation It may not show fully all the issues raised in the research Thesis Structure Chapter I: Introduction to Petrolimex Joint-Stock Insurance Corporation and Hull Insurance Market Chapter II: Hull Insurance and Theoritital Framework Chapter III: Analyze Affecting of Factors to Hull Insurance of Petrolimex Joint-Stock Insurance Corporation Chapter IV: Recommendation and Solution to Improve Hull Insurance Efficiency of Petrolimex Joint-Stock Insurance Corporation CHAPTER I INTRODUCTION TO PETROLIMEX JOINT-STOCK INSURANCE CORPORATION AND HULL INSURANCE MARKET 1.1 Introduction to Petrolimex Joint-Stock Insurance Corporation (PJICO) Petrolimex Joint-Stock Insurance Corporation (PJICO) is the first Joint Stock Insurance Company in Vietnam insurance market PJICO is the combination of strong prestigious State Corporations such as Petrolimex Group (Petrolimex), Vietnam Steel Corporation (Vinasteel), Vietnam National Reinsurance Corporation (Vinare), Vietnam Foreign Trade Bank (Vietcombank), Hanoi Hanel Electronic Company (Hanel) PJICO is established under the License No 1873/GP-UB dated 8th June, 1995 issued by Chairman of Hanoi People Committee Until now, PJICO has been operating over 25 years from 1995 with charter capital of 53 billion dong The development of PJICO can be summerized as follows: Period from 1995 to 2002: The beginning period is the period of stable, effective and persistant development of the company PJICO focused on some lines of retail insurance such as motor vehicle, health (personal accident) PJICO was one of leading insurers with good quality That was the important stage and is the premise for the next spectacular developed period Period from 2002 to 2005: That was the most spectacular development period with the highest growth in domestic insurance market The average growth rate was 60% per year With the market share of 5.7% in 2002, PJICO occupied 13% insurance market in 2005, ranked 3rd in domestic non-life insurance market and narrowed the gap with the 1st ranked insraunce company - Bao Viet At that period, PJICO invested According to survey’s result:  26.45% said PJICO should pay attention to period of claim settlement This answer accounts for highest percentage Comments of experts: This is the factor affecting a lot the business results  25.62% said PJICO should pay attention to the diversification of products It is the second most important factor Comments of experts: This is the content affecting a lot the business results  14.05% said PJICO should pay attention to claim settlement procedure Comments of experts: This is the content affecting a lot the business results  33,8 % for other options The majority of clients well evaluate trademark, image, financial capacity, service quality and ship insurance of PJICO However, clients not get satisfactory in some aspects such as period and procedure of claim settlement as well as the diversification of products In order to increase competition capacity and image of PJICO closer to clients, PJICO should upgrade period and procedure of claim settlement as well as multiform of products 4.2 Assessment and Evaluation of Interviewed Experts  Concerning ship insurance in Vietnamese market in recent years Ship insurance was appeared in Vietnam in 1990s At that time, Bao Viet was only Ship and Cargo Insurer Thanks to the economic development, up to now there are 30 non-life insurance companies providing ship insurance such as Bao Viet, PVI, PJICO, Bao Minh, PTI and other small insurance companies With increasingly revenue, ship insurance is potential in the upcoming time  Concerning the impact of economy on the development of ship insurance market 47 Economic crisis has affected shipping industry considerably Volume of cargo reduces, freight reduces continuously, and fuel costs increase while anchorage costs, salary for crew… not reduce Economic difficulties leads to insufficient fund for ship-owners to invest in maintenance/repairing/upgrading ships classification under the regulations Loan procedure of bank has been tightened… Ship insurance has faced difficulties such as delay in premium payment, increasingly debts from ship owners while liability for risks has been expanded  Concerning legal environment (both domestic and international) advantages and disadvantages related to ship insurance + Advantages: Ship insurance has followed regulations of International Marine Laws Practice among countries is not so much different; hence, claim and conflict settlement procedure is simple and fast + Disadvantages: Legal procedure in each country is different and quite complicated This will affect considerably to the ship owners and insurance companies  Concerning the competition among insurance companies This has also affected PJICO’s ship insurance: Overtime, renewal annual premium of ships reduces because of the ship depreciation while risks are higher Premium from new vessels is not considerable while terms and conditions are expanded to increase the interest of owners and the third parties Due to high loss records, premium is not enough to make balance for other underwriting costs; PJICO’s ship insurance has suffered lost for many years  General comments from experts via interview: service quality post selling is one of critical factor affecting business results In conclusion, there are some factors affecting the efficiency of ship insurance as follows: + High loss records + Period and procedure of claim settlement 48 + Service quality post selling CHAPTER IV RECOMMENDATIONS AND SOLUTIONS TO IMPROVE HULL INSURANCE EFFICIENCY OF PETROLIMEX JOINT-STOCK INSURANCE CORPORATION 4.1 Recommendations By analyzing activities in PJICO, it is found that PJICO is one of the most effective insurance companies PJICO is one of companies with stable and strong business However, the efficiency of ship insurance is not so high The fact is that, it has been lost for many years although the loss records and business loss have been reduced year by year Table 4.1 Result of Hull Insurance Business of PJICO (2013-2016) Year 2013 Year 2014 Revenue (Billion VND) Year 2015 Year 2016 222.3 247 276 329 Loss ratio (%) 80 55 47.84 34 Management underwriting loss 60 35 28 13 Source: PJICO (2014 to 2017) Ship insurance is one of traditional insurance types It accounts for a big percentage of revenue in PJICO as well as of the whole Vietnam insurance market However, the business result of ship insurance is not so good due to high loss ratio Therefore, researches showing factors affecting the underwriting results in PJICO as well as in the whole market is very important From outstanding matters in PJICO and trend of development in the upcoming time, it is necessary to find solutions to improve the efficiency - Reduce loss ratio Ship insurance in PJICO is a stable line of insurance, accounting for 18% of 49 total company revenue The following proposals may help to reduce the loss ratio: - After receiving the proposal from the clients: it is necessary to evaluate type of ship, depreciation period to apply the suitable premium rate - Concerning clients having high loss ratio over long period, it is necessary to negotiate to increase premium rate and share difficulties with PJICO - It is necessary to control adjustment activities to avoid defraud insurers - Long-term solutions are based on statistics to evaluate types of ships, depreciation period, trading limit, cargo on board, frequency of loss, claim amounts, premium, loss ratio… From these, the efficiency of each type of vessels, each fleet and warning vessels and fleets with high loss records will be shown to build up the plans for ship insurance - Upgrade quality of claim settlement - It is necessary to improve settlement procedure once receiving claims from clients - It is necessary to show in public the period, procedure and step of claim settlement - The loss adjustment must be timely and fast This should not affect the manufacture and business of clients - Adjustment must be exactly, determine the damage level as well as cause of loss - It is necessary to warranty the honesty and objectivity - In the case when there are undetermined losses or it needs more time to determine the inconsistant causes, there should be mechanisms to pay attention to customers such as extending the time of premium payments for the next period 4.2 Solution Analyzing factors affecting the service quality after issuing policies in PJICO will help to find out advantages and disadvantages in PJICO In the next 50 part, some proposals will be mentioned 4.2.1 Improving Service to Take Care of Clients It is found that writing policies is the first and the most important step in insurance industry It will decide the vital existing of insurance lines insuring by the insurance company In order to upgrade the service quality, PJICO should carry out the following measures: - Well-equipped staffs with insurance knowledge, experience as well as knowledge about laws applied to marine section These staffs should be able to explain in details about liabilities, interests as well as duties to their clients Furthermore, they need to meet all requirements and can answer all questions and confuse of clients to avoid arising complains and claims In addition, they should consult ship-owners to minimize loss - Often updating the changes in rules, terms and conditions as well guidelines of PJICO New policies and legal documents are sent to clients for their reference; - Focusing on staffs to take care of clients in order to collect information and consult solutions to minimize and prevent loss, guiding claim procedure for loss under coverage; - Providing liability insurance and advance compensation to customers if the cause of the loss is covered; - Periodically checking and evaluating the ability of partners (adjustment companies; evaluation companies, Laws firms ) to settle all outstanding matters during the progress of adjustment, show the conclusion and causes as well as damage with high accuracy 4.2.2 Well Carrying out the Claim Adjustment Under the strategy “We would commit to what we can and strive to achieve what we have committed”, PJICO has determined that attraction for clients will only be stablized when the insurance company exactly what the company have commnited through rapid and exact claim settlement to create the 51 clients’ belief and image of enterprise * Simplifying procedures and processes - It is neccessary to regularly review and sytematize all processes and procedures to find the most suitable and the best way for each steps: shortening the period of claim settlement, creating all convenient conditions for clients to receive compensation under terms and conditions stated in the insurance contract; - Organizing claim authorization level, upgrading claim settlement process Encouraging the flexible cooperation between Head office and member companies - Publishing hotline to receive and answer all questions of clients * Shortening time, upgrading progress and procedure of claim settlement Recent success of PJICO is set up and develeoped from many factors in which the most important priority is satisfactory and fast claim settlement With the awareness of it, this is the leading duty in business activities In addtion to compensate the finance, PJICO always pay attention to share and motivate customers when accidents and risks happen - Head office and member companies pay more intention to checkand controlthe adjustment and claim settlement The claim adjusters are asked to follow all regulations and progress to guarantee the time and procedure Period of claim settlement is shown in ISO and stated clearly in the insurance contracts In order to carry out the strict guidelines, the Head office also issue penalty applied to individuals and units in the system once finding out the faults in survey, claim settlement - In the upcoming time, PJICO should strenthen the professional aspect in claim adjustment, claim settlement, expressing higher responisibity and enthusiazm in guiding clients to complete all loss files, shorten the time of settlement 52 In fact in PJICO: After received full documents to prove the loss, the time of compensation settlement is 15 days Consist: Staff classify document: days Staff check document: days Leadership approve: days PJICO should shorten the time of settlement under 15 days by information technology solution like as use electronic signature Reduce time at the stage as: Staff classify document: days Staff check document: days Leadership approve: days * Satisfactory compensation The feedback of clients after claim settlement is the way to measure the satisfactory of clients With this meaning, PJICO should apply a lot of measures to gurantee the satisfactory of clients.: - Generating the groups of staffs for adjustment and claim settlement with high qualifications, experience and especially morality Well equiping more and more modern tools for staffs helps them to work correctly, faithfully, rapidly and to avoid making profits, to compensate exactly - Cooperating tightly with concerning authorities to investigate, determine the cause of loss, damage of all relating parties and show the plan of settlement - During the claim settlement, PJICO staffs should discuss, explain in details about the claim amount which is settled to clients This will create the satisfactory and calm status for clients - Increasing training for staffs who carry out the adjustment and claim settlement not only concerning the underwriting but also other ralating fields to settle claim suitably and avoid defrauding insurers - Applying suitable penalty to staffs who make troubles or cooperate with clients to defraud insurers 53 4.2.3 Enhancing Competitiveness and Image of PJICO * Facilities Up to now, facilities among companies of PJICO are not equal PJICO should invest in building, repairing and hiring working offices to upgrade the infrastructure which are suitable with the image and position of PJICO This is to create the belief for clients, especially potential clients Additonally, working equipments and facilities of compnaies in other areas are necessary to be taken care PJICO pays attention to develop profesional software management system and organize training courses for staffs in order to use Premia software in the whole system * Management capacity Enhancing the management skills not only for of staffs but also for leaders must be taken care This makes the management more effectively Person with high qualifications will be arranged in right positions in order to work more effectively and contribute more to the sucess of corporation This, consequenly, raises the image as well as service quality of PJICO * Image of PJICO The image of PJICO has been highly appreciated for many years Therefore, it is necessary to maintain this image In addition to this, PJICO should study and show strategy of cooperation to raise this image to other countries to intergrate internationally * Financial capacity Financial capacity to compensate big loss in timely manner will raise the image and trademark of PJICO, carrying out all commitments with clients PJICO should increase of charter capital to meet all tender requirements for bidding of shipping companies - PJICO should often organize short-term training courses within the Head office to provide fully knowledge, functions, communication skills, underwirting 54 skills * Training and upgrading the quality of human resources: - Often organizing meetings to exchange profesional experience, underwriting information, sharing obtacles in operation not only among PJICO member companies but also other companies in PJICO system - PJICO should encourage staffs’self- learning by supporting part of the cost since each employee is fully aware about what they need to learn more - Training to improve the quality of human resources is important in insurance business Leader of PJICO shouls pay attention to this, especially training for agents who contribute considerably in revenue of retails * Creating motivation for staffs The staffs will develop their ability and energy effectively once they are encouraged and evaluated their ability on time Besides, training and updating more underwriting knowledge and experience must be cared Interest, bonus and suitable salary for their position and ability are important things to help the staffs to work more and more effectively * Professional Ethics For insurance companies, morality is built on Enterprise culture Each staff of PJICO should live and work in this culture which helps client to believe and cooperate with PJICO This is quite complicated matter and can not carry out in short time Hence, PJICO should carry out in advance the following measures: - Issuing all regulations in respect of communication and behaviour among staffs and clients - Building up standards in respect of behaviour and actions for staffs Training more and more about the communications and attitudes to avoid any confuse or impolite attitudes to clients 55 CONCLUSION For many years, insurance is one of industries which has very impressive development of revenue and profit as well as stable growth rate in Vietnam However, there still have many challenges for non life insurance companies That is why all non life insurance companies must complete and improve theỉ service quality, make clients feel satisfactory, minimize bad factors affecting the efficiency of insurance industry By analyzing, it is shown that there are many factors affecting the efficiency of ship insurance The target of this thesis is studying factors affecting the efficiency of ship insurance, but the fact is measuring these factors to collect ideas and feedback from clients concerning the ship insurance in PJICO Finanally, some solutions and proposals are shown to support and develop more and more ship insurance However, this thesis is carried out on small group of clients using insurance in PJICO, therefore the results will be more correct if it is implemented in bigger groups with more samples In the scope of this master thesis, the research results, ideas and porposals may contrubute to the development of PJICO Due to the limited time, experience and information, author looks forward to receiving comments and ideas for the thesis to be more completed, create conditions for next researches 56 REFERENCES References in Vietnamese D Bland (1998), Bao hiem: Nguyen tac va Thuc hanh, Nha xuat ban bo Tai chinh, Hanoi (Insurance principles and practice, Financial Publishing House) Hoang Trong Chu, Nguyen Mong Ngoc (2005), Analizing data under SPSS, Statistics publishing House, Hanoi Insurance laws of Vietnam 2000, 2010, 2013 Nguyen Van Dinh (2012), Insurance Economics, Press of National Economics University, Hanoi PJICO (2014, 2015, 2016, 2016), Annual Report PJICO (2014, 2015, 2016, 2016), Financial Report Cục quản lý giám sát bảo hiểm (2014, 2015, 2016, 2017), Niên giám thống kê (Vietnamese Insurance Supervisory Authority (2014, 2015, 2016, 2017), Statistical Book) Referenes in English Berry Leonard, Wall Eileen, Carbone Lewis (2006), Service Clues and customer assessment of the service experience: Lessons from marketing, Academy of Management Perspectives, p43 57 Brady M K., Cronin J.J (2001), Some new thoughts on conceptualizing perceived service quality: A hierarchical approach, Journal of marketing, pp 34 49 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to service quality dimensions, Service Industries Journal, pp 287 303 11 O’Brien E M., Deans K R (1996), Educational Supply Chain: a Tool for Strategic Planning in Tertiary Education, Marketing Intelligence &Planning 12 Parasuraman A., Zeithaml V A., Berry L L (1985), A conceptual model of service quality and its implications for future research, Journal of Marketing 13 Parasuraman A., Zeithaml Valarie A., Berry Leonard L.(1988), SERVQUAL: A multiple item scale for measuring customer perceptions of service quality, Journal of Retailing, p12 14 Parasuraman A., Zeithaml V A., Berry L L.(1991), Refinement and Reassessment of the SERVQUAL Scale, Journal of Retailing, Vol 67, No 15 Parasuraman, A., Zeithaml, V A., Berry, L L.(1993), More on improving service quality measurement, Journal of Retailing, Vol 69, No 16 Santos J (2002), From Intangibility to Tangibility on Service Quality Perceptions: a Comparison Study Between Consumers and Service Customers and Service Providers in Four Service Industries, Managing Service Quality 17 Storbacka K., Strandvik T., Gronroos C (1994), A service quality model and its marketing implications, International Journal of Service industry Management, pp 21 18 Suuroja, Maive (2003), ―Service quality — Main conceptuallizations and critique‖, University of Tartu Faculty of Economies & Business Administration Working Paper Series, p3 27 58 APPENDIX QUESTIONAIRE Subjects: Experts are people who are working in PJICO, major in hull insurance at least 10 years Method: Direct interview INTERVIEW QUESTIONS Hull insurance is one of traditional insurance type and accounts for big percentage of total revenue not only in PJICO but also in the whole insurance market However, underwriting results are not so good, loss ratio is high Hence, the research is to show factors affecting the efficiency of insurance, particularly hull insurance in PJICO In order to serve this research, we would show some following questions and look forward to receiving your assistance: Please show your ideas about development of hull insurance in Vietnam in recent years? How you evaluate the effects of economy to the development of hull insurance? Please show advantages and disadvantages of legal environment to hull insurance (domestic and international)? What you think of the competition among insurance companies and hull insurance in PJICO? Please show your ideas about the following factors affecting the results of PJICO business (scores from to in which is the lowest and is the highest) No Factors Totally not Not Affected Much affected affected affected Products Distribution channel Service quality after selling Adjustment and claim settlement Underwriting progress Others Very much affected How and which factors should PJICO upgrade results of ship insurance? What should State support in policies for development of ship insurance market? 59 QUESTIONAIRE Subjects: Representatives of Ocean Transportation Companies who have been using hull insurance of PJICO Method: Direct interview QUESTIONAIRE Hull insurance is one of traditional insurance type and accounts for big percentage in portfolio not only of PJICO but also the whole insurance market However, underwriting results are not so good, loss ratio is high Hence, the research to show factors affecting the efficiency of insurance, particularly hull insurance in PJICO is very important In order to serve this research, we would show some following questions and look forward to receiving your assistance: A Information about the interviewee: - Full name: - Company: - Duration under insurance in PJICO: year…… 2-5 years … above years…… - Value of property (ship) under insurance in PJICO: B Main content: How you evaluate the trade mark and image of PJICO? Very bad  Bad  Normal  Good  Very good  Very good  How you evaluate the financial capacity of PJICO? Very bad  Bad  Normal  Good  How you evaluate the ship insurance of PJICO (put X): Factors Very not suitable Not suitable Suitable Very suitable Too suitable The diversification of products Coverage Endorsement Premium Terms and conditions How you evaluate the service quality of PJICO (put X) 60 Very bad Content Bad Normal Good Very good Providing information about service Manner and professionalism Underwriting qualification Supporting insurance procedure Supporting claim settlement Taking care of clients after issuing policies Insurance procedure Claim settlement procedure Do you think which the following items PJICO should take care to raise the capacity of PJICO: - Financial capacity  - Distribution channel  - Service quality  - Quality/diversification of products  - Management ability  - Facilities  - Staffs  - Claim settlement procedure  - Time of claim settlement  What are your proposals to raise service quality after issuing policies in PJICO? 61 ... Improve Hull Insurance Efficiency of Petrolimex Joint- Stock Insurance Corporation CHAPTER I INTRODUCTION TO PETROLIMEX JOINT- STOCK INSURANCE CORPORATION AND HULL INSURANCE MARKET 1.1 Introduction... Introduction to Petrolimex Joint- Stock Insurance Corporation (PJICO) Petrolimex Joint- Stock Insurance Corporation (PJICO) is the first Joint Stock Insurance Company in Vietnam insurance market PJICO is... 2.3.1 Factors Affecting Hull Insurance Efficiency 27 2.3.2 Data 29 CHAPTER III: ANALYSZE AFFECTING OF FACTORS TO HULL INSURANCE OF PETROLIMEX JOINT- STOCK INSURANCE CORPORATION