CHAPTER III: ANALYSZE AFFECTING OF FACTORS TO HULL
3.1.2. Affect of PJICO’s financial capacity
Financial capacity affects to the insurance capacity and the retention of the insurer. Financial capacity is high and stable, the insurance capacity and retention is improved and have positive affected to the business result.
Table 3.2. Evaluation affecting of PJICO’s financial capacity
evaluation Results
(interviewers)
Percentage (%)
Very bad 0 0
Bad 0 0
Normal 16 30.19
Good 31 58.49
Very good 6 11.32
Total 53 100
Figure 3.2: Evaluation of financial capacity of PJICO
Source: collected from the survey More than a half of client evaluated PJICO’s financial capacity is good (58.49%). However, there are 16 client avaluate this factor is nomal (30.19%). In comparison with other insurers in Vietnam Insurance market, PJICO’s financial capacity is hight, but it is low in comparision with other international insurers, those engaged in marine insurance.
4.1.3. What do you think about Ship Insurance Product of PJICO?
* Evaluating the diversification of products
Insurance products are not protected by trademark regulations, so that, the products are similar among companies. The diversification of products will be giving client more chance to choose products, give positive affect to the business result. The diversification related to the number of products, insured risks, support services.
Table 3.3. Evaluation affecting of PJICO’s product diversification
evaluation Results
(interviewers)
Percentage (%)
Not very suitable 0 0
Not suitable 0 0
Suitable 46 86.79
Very suitable 7 13.21
Too suitable 0 0
Total 53 100.00
Source: collected from the survey
Figure 3.3: Evaluation of the diversification of products in PJICO Source: collected from the survey
The survey’s result showed that 86.79% client evaluated PJICO’s product diversification is suitable, 13.21% evaluated PJICO’s product diversification is very suitable.
* Evaluation of coverage
Insurance coverage provides the scope of protection to insured. In general, when the market gone up, the coverage is tied, when the market is gone down, the coverage is more opened. Most of client hope that the coverage is opened.
Table 3.4. Evaluation affecting of PJICO’s product coverage
evaluation Results
(interviewers)
Percentage (%)
Very not suitable 0 0
Not suitable 2 3.77
Suitable 43 81.14
Very suitable 8 15.09
Too suitable 0 0
Total 53 100.00
Source: collected from the survey
Figure 3.4: Evaluation of coverage in PJICO
Source: collected from the survey According survey’s result, 96,23% of client said that scope of PJICO’s hull insurance coverage is suitable and very suitable. From the side of client, this evaluation is good, help to attract more clients, however, from the side of insurers, this may not be good. The coverage is large may is a reason leading to increase in loss ratio.
* Evaluation about endorsements
Endorsements expand the coveage of insurance.
Table 3.5. Evaluation affecting of PJICO’s product endorsements
evaluation Results
(interviewers)
Percentage (%)
Very not suitable 0 0
Not suitable 1 1.89
Suitable 42 79.24
Very suitable 10 18.87
Too suitable 0 0
Total 53 100.00
Source: collected from the survey
Figure 3.5: Evaluation of Endorsements in PJICO
Source: collected from the survey The survey’s result showed that 98,11% client evaluated that endorsements are suitable and very suitable.
* Evaluation of premium
Premium is rated by actuary and based on risk profile as experience from the industry as well as insurers. Problem in emerging market is that some insurers may reduce premium, even lower that technique premium. In Vietnam, most of insurers are lost in hull insurance business (loss ratio is high, premium is not increased).
Table 3.6. Evaluation affecting of PJICO’s product premium
evaluation Results
(interviewers)
Percentage (%)
Very not suitable 0 0
Not suitable 6 11.32
Suitable 36 67.93
Very suitable 11 20.75
Too suitable 0 0
Total 53 100.00
Source: Collected from the survey
Figure 3.6: Evaluation of premium in PJICO
Source: collected from the survey Evaluation from client is good with nearly 90% evaluated it is suitable and very suitable. However, at the situation of high loss ratio and loss from business of insurers, PJICO should be review present premium.
* Evaluation of terms and conditions
Terms and conditions are very important in insurance business, those are factors to reduce dispute between insurer and client.
Table 3.7. Evaluation affecting of PJICO’s product terms and conditions
evaluation Results
(interviewers)
Percentage (%)
Very not suitable 0 0
Not suitable 0 0
Suitable 45 84.91
Very suitable 7 13.20
Too suitable 1 1.89
Total 53 100.00
Source: collected from the survey
Figure 4.7: Evaluation of terms and conditions of PJICO
Source: collected from the survey With 100% evaluations that PJICO’s product terms and conditions are suitable, very suitable and too suitable, it can be showed that the product’ terms and conditions of PJICO is got high rating from client, which support for hull insurance business of the company.
3.1.4. Affecting of Service Quality on Hull Insurance of PJICO
* Evaluation of providing information
Provide information for client is a liability of insurers. However, in emerging market, some insurers do this task not good.
Table 3.8. Evaluation affecting of PJICO’s information provision
evaluation Results
(interviewers)
Percentage (%)
Very bad 0 0
Bad 0 0
Normal 5 9.43
Good 45 84.91
Very good 3 5.66
Total 53 100.00
Source: collected from the survey In case of PJICO, most of interviewers evaluate that the company do good this task, 90.57 % said that providing information is good and very good.
* Evaluation of professionalism:
Professionalism of insurers is so important to their business. This will be affecting to the business results, company’s trademark and rating.
Table 3.9. Evaluation affecting of PJICO’s professionalism
evaluation Results
(interviewers)
Percentage (%)
Very bad 0 0
Bad 0 0
Normal 2 3.77
Good 44 83
Very good 7 13.2
Total 53 100.00
Source: collected from the survey The survey’s result showed that 96.23% of interviewers evaluated that PJICO’s professionalism are good and very good. This is good evaluation for the
company, has positive affect to the hull insurance business.
* Evaluation of professional knowledge:
Professional knowledge mentions about the knowledge of PJICO’s staff relating to hull insurance, such as: product, risk assessment, claims settlement, regulations, etc.
Table 3.10. Evaluation affecting of PJICO’s professional knowledge
evaluation Results
(interviewers)
Percentage (%)
Very bad 0 0
Bad 0 0
Normal 6 11.3
Good 45 84.9
Very good 2 3.77
Total 53 100.00
Source: collected from the survey Most of staff in hull insurance department in head office or companies in PJICO have at least ten years in marine insurance, so that, the evaluation of 88.68% said that professional knowledge at good and very good is suitable in this situation.
* Evaluation of supporting and guiding clients:
This factor affects to the quality of service, it also is factor supports for the client to understand products.
Table 3.11. Evaluation affecting of PJICO’s supporting and guiding clients
evaluation Results
(interviewers)
Percentage (%)
Very bad 0 0
Bad 0 0
Normal 1 1.89
Good 47 88.7
Very good 5 9.43
Total 53 100.00
Source: collected from the survey.
The survey’s result from client showed that 98.11% evaluated that PJICO’s supporting and guiding clients are good and very good. There is 1.89% evaluated that is is normal.
* Evaluation of supporting in claim settlement:
Hull insurance is much complicated, it relating to insurers in abroad or international laws. So that, the support in claim settlement for client is much necessary.
Table 3.12. Evaluation affecting of PJICO’s supporting in claim settlement
Evaluation Results
(interviewers)
Percentage (%)
Very bad 0 0
Bad 0 0
Normal 4 7.55
Good 41 77.36
Very good 8 15.09
Total 53 100.00
Source: collected from the survey.
Most of interviewed client evaluated that this support of PJICO is good and very good (92.45% said that supporting in claim settlement is good and very good).
* Evaluation of taking care of clients after issuing policies
Taking care of clients after issuing policies is important factor, it affects to risk reduction activities as well as the loyalty of client with the company.
Table 3.13. Evaluation affecting of PJICO’s taking care of clients after issuing policies
evaluation Results
(interviewers)
Percentage (%)
Very bad 0 0
Bad 0 0
Normal 7 13.2
Good 43 81.1
Very good 3 5.66
Total 53 100.00
Source: collected from the survey PJICO’s taking care of clients after issuing policies are evaluated with 86.79% said that taking care of clients after issuing policies is good and very good.
* Evaluation of insurance procedure
Table 3.14. Evaluation affecting of PJICO’s insurance procedure
Evaluation Results
(interviewer)
Percentage (%)
Very bad 0 0
Bad 0 0
Normal 2 3.77
Good 49 92.5
Very good 2 3.77
Total 53 100.00
Source: collected from the survey This factor is got high evaluation from PJICO’s client. 96.23% of interviewer client evaluated PJICO procedure in hull insurance at good and very good.
* Evaluation of claim settlement procedure
This factor relates to the document and document processing in claim settlement.
Table 3.15. Evaluation affecting of PJICO’s claim settlement procedure
evaluation Results
(interviewers)
Percentage (%)
Very bad 0 0
Bad 0 0
Normal 9 17
Good 41 77.4
Very good 3 5.66
Total 53 100.00
PJICO’s claim settlement procedure is got high evaluated with 83.02% said that claim settlement procedure is good and very good. This also showed that PJICO’s service quality is good and the company is affording to serve its client.
Figure 3.8: Evaluation of service quality of PJICO
Source: collected from the survey The figure 3.8 showed overview evaluated relating to PJICO’s service quality.IN general, PJICO’s service quality got good evaluation from client.
3.1.5. Factors are need to focus
From the survey’s result, it can be seen that factors have positive affects to hull insurance of PJICO. In addition, the interview’s results also showed positive assessment on hull insurance of PJICO. Interviewer also emphasized on factors which need to focus to improve hull insurance business in general, hull insurance efficiency in particular.
Table 3.16. Evaluations of PJICO’s Specialists
Factors Results Percentage (%)
Financial capacity 7 5.79
Distribution channel 8 6.61
Service quality 12 9.92
Diversification of products 31 25.62
Leadership and Management ability 3 2.48
Facilities 3 2.48
Staffs 8 6.61
Procedure of Claim settlement 17 14.05
Period of claim settlement 32 26.45
Total 121 100
Source: collected from the survey
Figure 3.9: Aspects that PJICO should pay attention to improve the company's capabilities