INTERNSHIP REPORTDAI-ICHI LIFE INSURANCE VIETNAM

NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAMS INTERNSHIP REPORT DAI-ICHI LIFE INSURANCE VIETNAM Student: Lưu Hải Nam Major: Enterprise Management Class: Student’s ID: Supervisor: HANOI, 2016 Enterprise Management 11122622 Dr.Vũ Tuấn Anh TABLE OF CONTENTS INTRODUCTION CHAPTER I: GENERAL INFORMATION 1.1 Establish and Development 1.1.1 Dai Ichi Life 1.1.2 Dai Ichi Life Vietnam 1.1.3 Cau giay Headquater 1.2 Company structure .3 Chapter II: BUSSINESS ACTIVITIES 2.1 General Information – Strategy of the company 2.2 Products .5 2.3 Customer 2.4 Staf 2.4.1 Financial Advisers 2.4.2 Commissions Policy 2.5 General instruction in Sales of Life insurance products Development of relationships and development needs 2.6 Step on sales of Life Insurance Products .10 2.6.1 Find customer 10 2.6.2 Approach to potencial customer 11 2.6.3 Develop relation and needs 12 2.6.4 Design insuarance solutions 12 2.6.5 Customer Services 12 2.8 Results of Bussiness activities in recent years .13 2.8.2 Total revenue (Annual return) 13 2.9 Some restricted in Dai ichi 16 CHAPTER III: ENVIRONMENT 17 3.1 General information 17 3.2 Market share and competition 18 3.4 SWOT Analysis and Thesis direction 20 3.4.1 SWOT analysis 20 SWOT Analysis of Dai-ichi Life 20 CONCLUSION 22 REFERENCES .23 LIST OF FIGUR Figure 1 Structure of Dai-ichi .3 Y Figure Number of customers Figure 2 Dai-ichi Sales Process Figure Number of Customers .13 Figure Number of Financial Advisor 14 Figure Annual Return 15 Figure Market share 19 LIST OF TABL Table Commission rates based on revenue (%) .7 Table 2 Development assistance (Dai-ichi) Y Table Headline Insurance Forecasts (MI -2016) 18 INTRODUCTION After the Internship program in Dai Ichi Life Vietnam – Caugiay Headquater I was given the chance to work in a professional environment I worked in Telesales position and the company provided the best condition for me With the help from company as well as the guidance’s from colleagues, I have completed my programs with many useful knowledge This Report will provided the general information about Dai-ichi Life Vietnam, and detail information focus on Caugiay headquater – where I have chance to work and observe Further, the report will mainly focus in Sale as it is the most important activities of the company Data and number will be collected from 2011 – 2015 As some limitation of the company, I could not avoid the lack of some Data and information Report Structure Chapter 1: General information Chapter 2: Business Activities Chapter 3: Environment CHAPTER I: GENERAL INFORMATION 1.1 Establish and Development 1.1.1 Dai Ichi Life Dai-ichi Life was founded in 1902 with the quote: "Customer First" Became the second largest life insurance company in Japan and Asia, one of the company's leading life insurance market in the world with total assets of US $ 276 billion and annual premiums revenue of 29 billion dollars US (in the fiscal year ending on 31/03/2012) In Japan, Dai-ichi offers a portfolio of diversified financial services, including life insurance, pension funds and asset managers with a nationwide distribution network covers more than 40 thousand professional consultants, working full-time As at May 3/2006, Daiichi asset management sector amounted to more than 276 billion dollars to more than 8.5 million passengers Rank With over 100 years of experience in the life insurance industry and strong financial strength, Dai-ichi Life has extensive knowledge about our products, effective management of financial and operational capacity in line with motto "customer First" But this dominance is leverage to Dai-ichi Life continues to develop and deliver the products and the best service to customers 1.1.2 Dai Ichi Life Vietnam Dai-ichi Life Vietnam is a member of "The Dai-ichi Mutual Life Company Insuarance" Dai-ichi Japan established the representative office in Vietnam since 2005, Dai-ichi has accumulated valuable experience in the life insurance market Vietnam In 18/01/2007 Insurance Company Dai-ichi Life Vietnam was established through the transfer of life insurance company Bao Minh CMG With this decision, Dai-ichi has demonstrated long-term commitment to Vietnam life insurance market and look forward to contributing positively to the growth of this market The birth of the Dai-ichi Vietnam is an important milestone in the history of 105 years of operation of the Dai-ichi Life Japan and it is also notable events in the history of the transfer, merger of companies in the field financial services in Vietnam Dai-ichi Vietnam have missions:  Contribute to the development of Vietnam society through the provision of products and services for life insurance the best and most advanced  Provide the highest satisfaction to customers  Provides satisfaction for staff and financial Advisors 1.1.3 Cau giay Headquarter Through collaboration with the Hung Phat Dai An Limited Company, Daiichi Vietnam opened the 2nd office in Hanoi The new office is located at 12A Floor, No 169 Nguyen Ngoc Vu, Trung Hoa Ward, Cau Giay District, Hanoi This is a general agency office in Hanoi 2nd, general agency office opened to serve the market and provide better service to customers locally Cau Giay District to the west of Hanoi city, the gateway to an important traffic of the city, connecting with the North West Province With economic structure towards industrialization - services, infrastructure, Cau Giay increasingly improved, attracting more business investment, contribute to economic development It is also the county focus of many major universities in Hanoi, many neighborhoods were built in this area to make the face of Cau Giay rapid change With rising living standards, the protection and financial accumulation against risks become one of the essential needs of the people 1.2 Company structure General Director Bussiness organize and IT Department Sales director Area Sale Directors (3) Brand Managing director Agencies supporter Sales manager Sales group leader Financial Adviser Figure 1 Structure of Dai-ichi  General director (Mr Takashi Fujii): The leader of Dai-ichi Vietnam  Brand director: Director in Brand Development  Bussiness organize department: Include office staffs like receptionist, accountancy, treasurers, secretary,… responsible for given objectives and helping other departments  IT department: Responsible for information technology system  Sales director: Direct the marketing and sale programs, Report directly to general director and have responsible for Sale Result  Area sale directors: person corresponding for Northern, Southern and Middle of Vietnam: Direct the sale and marketing programs in their area, Report Sale result for sales director  Agency support: Do supporting activities for agencies, organize competition in company  Sale group leader  Financial Adviser: Each Financial Adviser is an agency, directly contact with customer and provides the best finance solutions for them employees Financial Advisor very important, they will have to find these customers, arouse him and advisory needs to customers can choose for themselves the most appropriate insurance Dai-ichi Life Vietnam currently uses two methods of searching for customers: the direct method and the indirect method DIRECT METHOD The direct method is Financial Advisor to direct staff to meet and contact with customers through a variety of ways to find out the necessary information about the customer, such as career, financial condition, age , needs protection, Dai-ichi Vietnam is implementing a number of search methods such as direct customers: Survey information directly: through the survey information, market research on protection needs for each customer; the survey information is drafted in the form of alternating choice questions open questions suitable for many different subjects on age, gender, occupation, , then be printed into and sent to the customers to gather information Meet acquaintances, relatives, friends, colleagues, partners, to advise on products This is also a common method of the Dai-ichi Financial Advisor use The advantage of this method is easy to reach customers, easy to deal, negotiate, work often takes place smoothly and quickly by have a good relationship with customers However the downside of this approach is only used on the first time when the new Financial Advisor work by this relationship are limited Get to know and build relationships with new customers to consult This approach met a lot of difficulties by first encounter difficulty can create customer trust to get the necessary information about them, though Financial Advisor full proof of the serious legal and their job is done Moreover when customers reach this way often happens status from their uncooperative because they not have time and feel burdensome INDIRECT METHOD This is a method of collecting information about customers that Financial Advisor no direct contact with customers Through referrals of acquaintances, friends, colleagues, relatives This can be seen as a form of word of mouth advertising that its advantages are easy to create trust by introduction conveyed from the familiar relationship 11 Through centers such influence: The head of population groups; Heads of agencies, organizations and enterprises; Individuals or organizations with influential to many audiences This method advantage of influence or use the prestige of the mogul, a voice for the public to showcase the company, product insurance products, create confidence, which can collect information about customers 2.6.2 Approach to potencial customer After the search for customers, Financial Advisor has a client list with certain information Based on that information, will be screened and selected Financial Advisor out of reach potential customers Usually Financial Advisor use the phone to contact potential customers Calls to introduce companies, especially insurance products that Financial Advisor likely that consumers demand Contents of the call usually summed up in talk time under minutes Financial Advisor highlighted the benefits of insurance products and the suitability of the product to the customer conditions If customers feel concerned and demand, Financial Advisor set appointments will apply directly to the time and place that is convenient for the customer If the customer refuses, Financial Advisor sought to ask why and thoughts as well as the needs of customers about products or suggestions about other insurance product This is an advantage to be able to study the direct insurance market in Vietnam through direct interviews with customers Reaching potential customers to see you as an important step and require deft handling skills and professional qualifications of a Financial Advisor This is the first time contact with customers Financial Advisor to introduce the company and the company's products If said flexible handle situations, Financial Advisor can create the initial good impression with customers, thereby facilitating the next step of the mining operations of insurance 2.6.3 Develop relation and needs Once set up an appointment with the customer first, Financial Advisor should take it as a basis to develop a relationship with them Normally Financial Advisor customer will have to see you several times to consult and negotiate on matters relating to the product and the condition of the individual customer In this step, Financial Advisor should wield the ability to communicate well, make the right impression and customer trust These appointments not only discuss and discuss the work that needs visit and share sincere, interested customers The relationship not only between the supplier and the consumer side that should develop into a relationship much closer quen Financial 12 Advisor can express feelings and concerns expressed by donated small gifts on the occasion of birthdays, holidays or special days, are meaningful to customers Through these encounters, Financial Advisor learn and help customers detect a desire for their own protection, and Financial Advisor should care about the concerns, worries of customers on issues related insurance products that they intend to participate, such as financial problems, health problems, A customer can purchase insurance products at the same time, so Financial Advisor can hints, advice to current development needs and potential needs of customers 2.6.4 Design insuarance solutions Through these meetings to learn about the needs of the customer protection, Financial Advisor will offer insurance solutions to suit the conditions and capabilities of each customer and asked to join When clients join an insurance program, they can receive multiple benefits simultaneously In case the customer is not eligible to participate an insurance product, Financial Advisor need to understand the needs and benefits that customers expect from the product what it is to be able to advise to other insurance product , while ensuring that the main benefits that conditions for participation in accordance with the ability of our customers Understanding the characteristics and interests of the insurance products are requested to be at the forefront of the implementation steps Financial Advisor this exploitation Also people should Financial Advisor expertise combine it with the ability to react flexibly and handle the situation well, ensuring timely offer customers the best financial solutions 2.6.5 Customer Services Customer service is a very important part of If this Financial Advisor good job at maintaining the rate of signed contracts will be very high On the other hand, customers feel satisfied to receive good service from the insurance company, they can become advertisers voluntarily and effectively for the company because they will introduce and offer comments about the company with friends, colleagues and their relatives  To offer customers the best service, Financial Advisor some concern the following issues: 13  Regularly provide customers with information about the current status of the insurance contract, timely handle situations that may arise in the contract and answer these questions, the concerns of customers  Maintain good relationships with customers by regularly by phone, congratulating the New Year holidays, birthdays,  Good performance obligations and help customers in the payment of contract payments; encourage and advise customers Customers(1000 people)in the signing of new contracts 1200 1000 We can say the insurance’s Sales process in Dai-ichi is a closed process by following "Customer Service" step, after the insurance contract has been 800 signed, Financial Advisor back to "Search customers" to continue to develop Customers(1000 people) new insurance contracts with new customers 600 2.8 Results of Business activities in recent years 400 2.8.1 Number of customers 200 After 10 years with many challenges, Dai-ichi Vietnam now have an gradually increasing number of customer 2011 2012 2013 2014 Figure Number of Customers 2.8.2 Total revenue (Annual return) 14 2015 With the main strategy is to expand market share, Dai-ichi Vietnam focus on open new agencies and recruit Financial Advisor Financial Advisor 60000 50000 40000 Financial Advisor 30000 20000 10000 2011 2012 2013 2014 2015 Figure Number of Financial Advisor Therefore, the Annual return rate of Dai-ichi is increasing rapidly 15 Annual return (Billion Vnd) 4000 3500 3000 2500 Annual return (Billion Vnd) 2000 1500 1000 500 2011 2012 2013 2014 Figure Annual Return 2.9 Some restricted in Dai ichi 16 2015 The fact that the current products of the Company Dai-ichi Vietnam only meet most of the needs of the majority of people living in the provinces and major cities, the products for other regions throughout the country remain poor while the essence in these localities also have people aware and certain demands on insurance If companies not soon give birth to new products to meet the demand in the market sector will lose the opportunity to exploit new potential markets According to the statistics of the company Dai-ichi Vietnam, the proportion Financial Advisor really very little activity during the year, accounting for 15-20% of the existing dealers In 2007, on the legal documents, the agents of the Company amounted to 6,500 agents, but only about 1,300 active agents This figure is really worrisome and should provide solutions to overcome If this situation will continue for a great influence to the business results of the Company in the future The customer care activities performed mainly by Financial Advisor, the operation from the company are limited, not deeply Number of employees Financial Advisor really care about customer care situation is not much cause customers to feel neglected, affecting service quality and reputation of the Company Means to contact the customer Financial Advisor stop at the phone, while the number of customers of a sizable staff Financial Advisor so sometimes they can not pay attention to the latest comprehensive our customers In the trading room has a computer system but not connected to the Internet should be used primarily for the purposes of printing, text editor and document exchange within the company The costs for customer care activities of Financial Advisor not supported from the company that they absolutely have to spend, this is a pretty major difficulties hindering mining personnel to fulfill their tasks Moreover, the cause of this condition causes some Financial Advisor not pay proper attention to customer care activities affecting in particular the quality of service and coverage mining results of the Company in general The Dai-ichi Vietnam now has to apply some method of advertising products through mass media such as direct advertising, advertising through product, advertising by word of mouth information The fact these methods also have brought about certain results, but has yet to gain more efficiency 17 18 CHAPTER III: ENVIRONMENT 3.1 General information Population A young population, rising middle-class incomes and female labor force participation are driving Vietnamese consumerism 42 percent of Vietnam’s population, which is estimated 91.6 million in 2014 and is growing by percent annually, is under 25 years of age Vietnam also has a large female working population (49 percent in 2014), making the female consumer ever more important Over the past decade, the number of middle class households (defined as number of households with income in excess of $20,000 constant 2005 U.S PPP$), has nearly doubled from 1.2 million in 2003 to 2.3 million in 2012 (Source: Global Insight) Economic Vietnam’s steady global economic integration and market-oriented reform has driven broad development gains over the past two decades, raising per capita income from $260 in 1995 to over $1,900 in 2013, dramatically reducing poverty levels and propelling Vietnam to join the ranks of lower middle income countries Total U.S.-Vietnam bilateral trade has grown steadily from $1.5 billion in 2001 to $34.9 billion in 2014, making Vietnam one of the important trading partners and 12th largest destination for agricultural exports Forcasting MI View: Vietnam's insurance sector wil l expand at a fast pace over the next few years , as robust economic growth supports demand for both personal and corporate insurance lines The market's development, and in particular the life insurance sector, has so far been hindered by the low income levels and disposable household income; however, we are seeing a gradual push towards higher expenditure as the economy expands and insurers develop products specifically targeted at low-income groups We also note the increase participation of multinationals which are driving innovation and product development Sun Life Financial's growing exposure to the market is a case in point and also illustrates a gradually improving investment climate Against this backdrop, we envisage insurance premiums growing at around 10% a year through the forecast period to 2020 19 Table Headline Insurance Forecasts (MI -2016) 3.2 Market share and competition The Life Insurance industry of Vietnam is characterized by intensive concentration According to the latest figures from the Department of Insurance management and supervision, In the end of 2015, the share of total premium revenue did not change significantly over the same period The first place still belongs to Prudential, the second position is Bao Vietnam Life, third place belongs to Manulife According to the Department of Insurance management and supervision- MOF, In 2015, life insurance market continued rapid and sustainable development with a total premium revenue growth of approximately 29.5% over the same period, operating revenue growth of about 39.7% The number of new contract (primary insurance contracts) of the life insurance market in 2015 was estimated at 1,298,776 contracts, increased 24.2% over the same period in 2014 In particular, the number of mix insurance products accounted for the largest share (about 41.8%, compared to 40.9% in 2014), Next is the investment insurance (34.4% estimated compared 20 to 32.7% in 2014) and life insurance (estimated at in 2014) Prudential BV nhân thọ Daiichi Othercompared 22.6% to 24.9% Market share of total premium income of the life insurance market there is no correct view changed significantly over the same period Leading position still belongs to Prudential for 29.9% market share, Bao Vietnam Life stands in second place with 25.7% market share, 12.1% share Manulife, AIA 9.2% market share, Dai -Ichi 9.1% market share, ACE 4.4% market share, PVI Sun Life market share of 2.3%, 2% market share Hanwha Life, Generali 1.8% market share Figure Market share 21 3.4 SWOT Analysis and Thesis direction 3.4.1 SWOT analysis Combine both Internal and External factors of Dai-ichi Life Vietnam in chapter II and III, an SWOT analysis is formed: SWOT Analysis of Dai-ichi Life Strengths: - Dai-ichi have long term experience in Life insurance - Strong finance situation as it is 100% foreign investment company - Large distribution system as there are 50,000 Financial Advisers all around the country - The commission policies are good, to have the attraction from new salesperson Weaknesses: - Lack of Financial adviser that have Insurance related degree - The Sales efficiency in recent years seem to start decreasing slightly - Only have 9% marketshare Opportunities: Threats: - Intensive Competition - Vietnamese are losing faith in VND - People have lack of Knowledge about Insurance Having identified the SWOT factors, a confrontation matrix can be combined in order to addresses the challenges and focus issues for Daiichi: - Fast growing and potential Industry with many areas uncovered - Vietnam's government have a good policy to develop insurance market - Other investment channels are more risky Long-term orientation of Dai ichi Life Vietnam is to occupy as much market share as possible Therefore, the sales activities need to be on top priority Life insurance market is an intense competition between domestic and foreign enterprises, marketing activities and product promotion need to be taken seriously To attract new customers to participate as well as maintain existing customers, Dai ichi Life Vietnam needs to build on a good sales processes 22 23 CONCLUSION After internships at the company in a sales position, with actual work experience as well as detailed analysis of the situation inside and outside of the enterprise I had an overview of the operations of the business The strengths, the weaknesses in the field of marketing and product exploitation Basically, Daiichi is a brand that is gradually forming in the Vietnam market, with good growth and potential in the future Furthermore, the main objectives of the firm is to expand the market share as much as possible To accomplish that objectives in the situation of intense competition, Dai-ichi Vietnam need to focus on the efficiency of the Sales activities Thus, they have to built up an appropriate Sales processes in order to achieve good results 24 REFERENCES http://www.mof.gov.vn/webcenter/portal/cqlgsbh/r/m/tttt/sltkctt? _afrLoop=19843845064091212#!%40%40%3F_afrLoop %3D19843845064091212%26_adf.ctrl-state%3Dlm8sq5zj0_4 http://www.vnbusinessreg.com/dai-ichi-life-ready-bigger-market-share/ http://www.dai-ichi-life.com.vn/ 25