Bao Viet Ins. Corp
Transcript of Bao Viet Ins. Corp
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BAO VIETINSURANCE CORPORATION
Presentation by Group 3
Pham Thi Hoai Minh
Bounthanome MixapDuong Thi Thanh Binh
EMBA-HRM
7 November 2009
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Established in 1965
Financial field
Went public in 2007
Biggest shareholders:
The State: 77%
HSBC: 10%
Bao Viet Holdings
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Introduction
BAO VIET INSURANCE
SCOPE: GENERAL INSURANCE
- Healthcare, Automobile, Cargo, Liabilities,
- Hull, Fire, Engineering, Aviation
REVENUE: $200 MILLION
WORKFORCE: 3,000 (230 at HO) Agents: 20,000
HEAD OFFICE:
- 4 Groups- 22 Departments
BRANCHES: 66
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Organisation Structure BV Insurance
OPERATIONALGROUP
DIRECT BUSINESSGROUP
FUNCTIONAL MGTGROUP
BANCASSURANCE
AGENTTRAINING & DEVT
DISTRIBUTIONCHANNEL MGT
GROUP
HR
LEGAL
FINANCE
INTERNALCONTROL &RISK MGT
GENERALOFFICE
CONSTRUCTION
REINSURANCE
PROJECT&BROKINGACCOUNT
AVIATION
CARGO
NON MARINE
BVINTERGLOBAL
FIRE & ENGINEERING
HEALTH & PERSONALINSURANCE
HULL & P&I
AUTOMOBILE
CARGO MGT
ADMIN
SURVEYOR &CLAIM HANDLING
CEO
BOARD OFMEMBERS
RESEARCH & PRODUCTDEVELOPMENT
DCEO DCEO DCEO
66 BRANCHES
Mechanistic Matrix
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Vision Be recognized by customers, competitors and
employees as the market leader in insuranceservice and products in Vietnam.
Mission
Generate continuous profitable growth through thedelivery of the best customer experience at thelowest possible cost.
Core competencies Expertise (underwriting, claim settling, products) Understanding customers Brand name Financial capability
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Growth rate of direct premium
No Companies Direct Insurance Premium Growth rate Market share
(Unit : million VND) (%) (%)
2006 2007 2008 2007 2008 2007 2008
1 Bao Viet 2,217,177 2,601,461 3,305,425 17.33 27.06 31.12 30.42
2 PVI 1,163,877 1,650,218 2,020,554 41.79 22.44 19.74 18.6
3 Bao Minh 1,386,058 1,611,700 1,884,429 16.28 16.92 19.28 17.34
4 PJICO 670,136 880,682 1,060,788 31.42 20.45 10.53 9.76
5 22 other
insurers
920,682 1,615,933 2,593,866 75.51 60.52 19.33 23.88
TOTAL 6,357,930 8,359,994 10,865,062 31.49 29.96 100 100
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Market situation
2008 Vietnam GI GWP by Company
Bao Viet
Bao Minh
Petrolimex
PetroVietnam
30.42%
17.34%
18.6%
9.76%
23.88%
General Insurance Gross Written Premium
(source: Association of Vietnamese Insurers Report)
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SWOT analysis
-Financial capability
-Brandname
-Human resources
-Understanding customers
-Distribution network
-Various products
-Economic growth
-Changes in political,demographic, social andfinancial services
-Financial market & insurancemarket growth
-IT infrastructure
-T&D for staff
-Ineffective performancemanagement & reward system
-Management skills
-Professionalism
-Customer service & product
not differentiated
-Economic down-turn
-Fierce competition: captive
and foreign invested insurancecompanies
INTERNA
L
EXTERNAL
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Forces of change
Internal: Equitization strategic partners HSBC
Pressure from shareholders
Business cycle saturated
External: WTO commitment - open insurance
market 1 Jan. 09 Fierce competition: many new players
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Positioning
Start Grow Saturate Decline
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Strengths & Weaknesses (1)Price Quality Diversification
Good re-insurancefunction
***
Decentralized coreactivities
Price notcustomized
Decentralized sales &customer service
Wide distributionnetwork
***
Distribution channel:only direct sales
IT infrastructureunderdeveloped
Customer service & claim
settling: inconsistentquality & speed
Mgt practice of SOEs
Decentralize coreactivities
Various products***
Few cross-productline packages
Products not
customized
Struct
ure
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Strengths & Weaknesses (3)Price Quality Diversification
-Relatively qualified & experienced staff-Low turnover rate
***
-Professionalism level
-Ineffective performance mgt and reward system
-Inconsistent KSA of staff among branches
-Insufficient T&D
-Lack modern mgt skills, insurance profession skills
-Morale
Pe
ople
-Vision
-Intellectual capability
-Open, good interpersonal skills
-Experienced in insurance industry
-Integrity, fast actionLe
adership
CEO
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Initial results &Recommendations for next steps (1)
Focusareas
Initial results Next steps
Structure Centralized some core
activities of someimportant product lines(fire, engineering, cargo)
IT infrastructureinvested: HR software,
InsureJ, BVAccount1 more distributionchannel started:Bancassurance
Continue to centralize other
product linesContinue infrastructure set-up
Customize products andprice
Develop web-based sales (e-Insurance)
Improve coordination b/wproduct lines
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Initial results &Recommendations for next steps (2)
Focusareas
Initial results Next steps
Culture More customer-orientedMore cooperativeworking environment
More trust and lessresistance to change byemployees
Further customer-oriented
Develop calculated risktaking culture
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Initial results &Recommendations for next steps (3)
Focusareas
Initial results Next steps
People More motivated by new
reward system in HQPerformance Mgt systembuilt
T&D: Core competencylearning map for
employees developed
Stable turnover rate
Expand application of new
reward system to branchesApply new Performance Mgtsystem
Organize T&D activitiesaccording to learning map
Develop professionalism
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Conclusion
Retaining market share, increasing growth rateand market leader status
Additional 8% to be acquired by HSBC
Success factors: Leadership Process of change: organising change committees,
assign key personnels to act as change agents Extensive and intensive training for change committees
members and change agents Communication to employees to understand, commit and
implement Strong support of strategic partner Using experienced consultancy
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