FOREIGN TRADE UNIVERSITY FACULTY OF INTERNATIONAL ECONOMICS ASSIGNMENT Risk management and insurance analyze marine cargo insurance business of pvi corporation from 2017 to 2021 Class TMAE308(GD1.Table of Contents Table of Contents 1 Table of Figures 3 Chap 1. Introduction 4 1.1. Overview of insurance and marine cargo insurance 4 1.1.1. Insurance 4 1.1.2. Marine cargo insurance 5 1.2. Classification marine cargo insurance policies 6 1.3. Scope of coverage of marine cargo insurance 6 Chap 2. Business situation of marine cargo insurance of PVI 11 2.1. Introduction of PVI JointStock Company 11 2.1.1. Overview of PVI 11 2.1.2. History of the development of PVI 12 2.1.3. Insurance packages offered by PVI 15 2.1.4. Marine Cargo Insurance packages of PVI 16 2.2. Customers 19 2.2.1. Classification 19 2.2.2. Types of goods that are usually insured (Cargo marine insurance) 19 2.2.3. Major customers 19 2.2.4. Characteristics and Requirements of major customers 20 2.2.5. Insurance claim procedure of PVI 21 2.3. Business situation of marine cargo insurance of PVI 22 2.3.1. Revenue 22 2.3.2. Business situation in the period of 20172021 24 Chap 3. Solutions and recommendation for PVI 26 3.1. Company development orientation 26 3.2. Recommendation and suggestions 27 3.2.1. Suggestions for PVI Corporation 27 3.2.2. Recommendation for the related state agencies 30 References 32
Introduction
Overview of insurance and marine cargo insurance
Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events.
Insured: the buyer, consumer of the insurance company: (I) pay the premium.
Insurer: the seller, the firm provides insurance product/ services – insurance market: to pay financial losses suffered by the insured as unforeseen events.
Insurance provides financial protection against a loss of an uncertain event A person can avail this protection by paying a premium to an insurance company.
Insurance is the risk transferring from the insured to the insurer.
Insurance works on the basic principle of risk-sharing People who may face the same risk will pay the premium into the “risk pool” and the insurer will use this money to pay for The Unlucky One who suffered an accident So that financial burden is reduced for everyone.
The business object of insurance is risk.
Exporters and importers face all the time uncertainties of loss of their goods.
Insurance is used to protect their financial interests against such risks and actual losses.
Without adequate insurance and protection of the interests of those with goods in transit, international trade would be negatively affected.
Liability of carriers to the goods is very limited.
Marine cargo insurance is essential for safeguarding goods transported by sea, providing coverage against potential losses during ocean freight As a form of supplemental insurance, it fills the gaps left by standard carrier protection, ensuring comprehensive coverage for your cargo Protect your shipments from unforeseen damage or loss with reliable marine cargo insurance, a crucial component in international shipping and logistics.
Marine cargo insurance covers export- import goods carriage by sea and related- reasonable costs.
1.1.2.2 Nature of marine cargo insurance
When the insured goods suffer losses, the company shall be liable for compensation according to the liability scope of the insurance coverage.
Comprehensiveness of the risk coverage: The risks covered by Cargo Transportation Insurance include marine, onshore and airborne risks, natural disasters and accident risks, dynamic and static risks, etc.
In no case shall this insurance cover loss damage or expense caused by inherent vice or nature of the subject-matter insured.
1.1.2.3 Necessity for marine cargo insurance Cargo needs to be insured because:
High probability of risk occurring in voyage.
Carrier’s liability is very limited.
Marine cargo insurance is a custom in international trade.
Classification marine cargo insurance policies
Voyage policy: an insurance policy or insurance certificate for one shipment from one port to another port
Open cover policy: Open cover insurance policy is an agreement between a merchant and an insurance company to insure all goods in transit within the agreement, until either party cancel the agreement
Valued policy: the insurance value is clearly defined in policy.Which makes it suitable for short voyage and goods with unchanged value.
An unvalued policy does not specify the insurance value upfront; instead, the insured pays a deposit, and the policy outlines the rules to determine the insurance amount after a loss This type of policy is particularly suitable for long voyages and goods with fluctuating values, providing flexibility in insurance coverage.
Scope of coverage of marine cargo insurance
The widest cover is provided under Institute Cargo Clauses A and a more restrictive cover under Institute Cargo Clauses B and Institute Cargo Clauses C. a Institute Cargo Clauses A
Insured Clause: The insurance covers all risks of loss of or damage to the subject- matter insured except those excluded.
General Average Clause: This insurance covers general average and salvage charges incurred to avoid loss from any cause except those excluded.
“Both to Blame Collision” Clause: This insurance is extended to indemnify the Insured against such proportion of liability under the contract of affreightment
“Both to Blame Collision” Clause as in respect of a loss recoverable hereunder. b Institute Cargo Clauses B
The insurance covers, except those excluded,
Loss of or damage to the subject-matter insured reasonably attributable to o Fire or explosive o Vessel or craft being stranded, grounded, sunk or capsized o Overturning or derailment of land conveyance o Collision or contact of vessel, craft or conveyance with any external object other than water o Discharge of cargo at a port of distress o Earthquake, volcanic eruption or lightning
Loss or damage to the insured subject matter can occur due to factors such as general average sacrifice, jettison or washing overboard, and the entry of sea, lake, or river water into the vessel, craft, hold, conveyance, container, lift, or storage location.
Total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craft o General Average Clause: This insurance covers general average and salvage charges incurred to avoid loss from any cause except those excluded. o “Both to Blame Collision” Clause: This insurance is extended to indemnify the Insured against such proportion of liability under the contract of affreightment “Both to Blame Collision” Clause as in respect of a loss recoverable hereunder. c Institute Cargo Clauses CThe insurance covers, except those excluded,
Insurance coverage typically includes loss or damage to the insured subject matter caused by fire or explosions, vessel or craft being stranded, grounded, sunk, or capsized, and overturning or derailment of land vehicles Additionally, it covers damage resulting from collisions or contact with external objects other than water, as well as the discharge of cargo at a port of distress These risks are essential components of comprehensive marine and cargo insurance policies, ensuring protection against common shipping hazards.
Loss of or damage to the subject matter insured caused by o General average sacrifice o Jettison o General Average Clause: This insurance covers general average and salvage charges incurred to avoid loss from any cause except those excluded. o “Both to Blame Collision” Clause: This insurance is extended to indemnify the Insured against such proportion of liability under the contract of affreightment “Both to Blame Collision” Clause as in respect of a loss recoverable hereunder.
Loss or Damage Caused by: Clause
Vessel or craft being stranded √ √ √
Overturning or derailment of land conveyance √ √ √
Collision or contact of vessel, craft or conveyance with any external object other than water
Discharge of cargo at a port of distress √ √ √
Earthquake, volcanic eruption or lightning √ √
Entry of sea, lake or river water into vessel, craft, hold, conveyance, container, liftvan or place of storage
Total Loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel of craft
Rain and/or freshwater damage √
Table 1: Summary of Institute Cargo Clauses Coverage
Business situation of marine cargo insurance of PVI
Introduction of PVI Joint-Stock Company
PetroVietnam Insurance Corporation (PVI), established in 1996 as a captive insurer for the Vietnam Oil & Gas Corporation (now Vietnam National Oil & Gas Group), is responsible for insuring PetroVietnam’s assets, construction projects, and international ventures In 2006, PVI became one of Vietnam’s first enterprises to undergo equitization, transforming into the Vietnam Oil and Gas Insurance Corporation, and was publicly listed on the stock exchange in 2007 under the stock code PVI Over the years, PVI has strived to establish itself as a prestigious regional insurance and finance group In August 2011, the company restructured into a parent-subsidiary model, with PVI Holdings managing capital, investments, strategy, personnel, and IT, while its member units focus on core business operations.
PVI Insurance Corporation conducts non-life insurance business
PVI Reinsurance Corporation conducts reinsurance business
PVI Fund Management Joint Stock Company operates in the field of asset management and financial investment
Founded with just 20 staff members and an initial charter capital of approximately 1 million USD, PVI has experienced remarkable growth over 14 years Today, it stands as the largest capital-invested insurer in Vietnam's insurance market, with a total equity and assets valued at 135 million USD.
338 million USD respectively as of the first quarter of 2010 PVI has successfully accomplished its mission of providing insurance services for property risks and business operations of PetroVietnam and has become the second largest insurance company inViet Nam in terms of revenue These are praiseworthy and remarkable achievements especially given the competitive and crowded local market with 28 non-life insurance companies.
PVI has solidified its position as Vietnam’s leading industrial insurance provider through its strong focus on maintaining and developing its core industrial insurance business The company serves prominent clients in Vietnam’s industrial and service sectors, including Vietnam Post and Telecommunications Corporation, Vietnam Electricity, and Vietnam Shipbuilding Industry Corporation Additionally, PVI partners with major international corporations such as Gazprom, Conoco Phillips, Chevron, Nippon Oil, Petronas, Talisman, and KNOC, demonstrating its extensive experience and credibility in serving both local and global industry leaders.
PVI experienced the highest growth rate of gross written premiums during its initial years, with an average of 34% growth from 2006 to 2009, as reported by the Vietnam Insurance Association This rapid expansion highlights PVI’s strong risk management capabilities and the professionalism of its sales force Additionally, PVI was among the first non-life insurance companies in Vietnam to successfully develop and implement comprehensive business management software, further demonstrating its commitment to innovation and operational excellence.
Since its foundation, PVI has had the ambition to become one of the leading insurers in the Viet Nam market and furthermore to develop itself into a leading Insurance – Finance Institution in the region Not only has been locally recognized as the second largest non- life insurer in Viet Nam, but PVI has also been a vanguard of the Viet Nam insurance industry while forging a path to integrate itself into the international market PVI remains a very important partner to giant international reinsurers in the Viet Nam market regarding reinsurance placement capacity and frequency.
Currently, the international credit rating agency AM Best ranks the financial strength of PVI Insurance at B++ (Good) and PVI Reinsurance at B+ (Good)
2.1.2 History of the development of PVIAiming to become an insurance company with the largest market capitalization in VietNam, PVI has recently conducted a capital raising effort through which PVI has selected
Oman Investment Fund (OIF) as a strategic shareholder with the OIF having acquired a 12.6% stake in the enlarged share capital of PVI Raising capital and selecting an international financial institution as a strategic partner is among the strategies to develop PVI into a combined finance-insurance institution OIF will be involved in investment projects taking part in the management and control processes of those projects PVI expects to learn from its strategic partner’s management experience, skills, and high technologies knowledge As an international experienced investment fund with a worldwide business network, it is hoped that OIF will bring benefits to PVI’s business development.
In 2011, PVI experienced a significant milestone in its development history by achieving its highest revenue ever, surpassing 5.2 billion VND and representing a 15% increase over 2010 This year also marked a successful restructuring into a parent-subsidiary model and earned PVI the prestigious title of Hero of Labour Known as Vietnam's leading industrial insurance company, PVI maintained its rapid growth rate, consistently outpacing competitors and cementing its market dominance.
In 2012, PVI Sun Life Insurance was established as a joint venture between PVI, holding 51%, and Sun Life, with a 49% stake, aiming to become a leading player in Vietnam’s life insurance market The company increased its charter capital to VND 2,342 billion through a share subscription agreement with the Talanx Group, strengthening its financial capacity and market position.
In 2013, PVI Reinsurance was put into operation as a joint stock company under the name of PVI Reinsurance Joint Stock Corporation and had been officially included in Talanx's Security List.
In 2014, PVI Insurance achieved the top position as the leading non-life insurance provider in Vietnam for the first time, solidifying its market leadership Additionally, PVI Sun Life, specializing in voluntary retirement life insurance, secured the number one spot in the Vietnamese market since its launch in April 2014, demonstrating its rapid growth and dominance in the sector.
In 2015, PVI continued to expand its core business On the 3rd of February, 2015, PVI
PVI Asset Management JSC was established to specialize in asset management and financial investments, showcasing the group's expansion into diverse financial services PVI Insurance maintains its position as the leading non-life insurance provider in Vietnam, reinforcing its dominance in the market Additionally, the PVI brand has been recognized by International Brand Finance as one of the top 50 companies with the strongest brands in Vietnam, highlighting its reputation and brand strength within the country.
In 2016, PVI celebrated 20 years of its establishment and development On September 1st, 2016, Vietnam Asset Development Corporation was established and is in charge of asset management and development This year, PVI Insurance ranked first in the non-life insurance market for three consecutive years PVI brand continued to thrive and was recognized by reputable organizations in Viet Nam and abroad PVI was honored to be one of the 30 most transparent businesses HNX 2015-2016 by the Hanoi Stock Exchange (HNX); placed in the top 30 most valuable brands of Viet Nam 2016 by Brand Finance; and voted to be one of the 50 best-listed companies on the Vietnamese stock market and one of 40 most valuable brand names in Viet Nam in 2016 by Forbes Magazine Vietnam.
Since June 2019 it has effected a fundamental change in its way of doing business: from
Shifting from a traditional focus on scale to prioritizing efficiency and scaling only when proven effective, PVI Insurance navigated complex COVID-19 developments in 2021 Despite these challenges, the company achieved a significant milestone by surpassing VND 10 billion in revenue for the first time, reaching 106.4% of its target.
In the first half of 2022, PVI Insurance demonstrated strong growth amid the 'new normal,' with total revenues reaching nearly VND 6.759 billion, reflecting a 24.2% increase compared to the same period in 2021 The company's revenue from original insurance grew by 19.7%, reinforcing PVI Insurance’s leading position as the top non-life insurance provider in Vietnam with a 16% market share.
Customers
Enterprises import and export goods to foreign countries, especially frozen seafood products or agricultural products.
- Shoppers, Vendors (Private) engaged in international trade and/ or local trade
- Manufacturers and processors of goods
- Transport companies, freight forwarding agents (logistics)
- Logistic companies on behalf of their customers
- Freight forwarders on behalf of their customers
2.2.2 Types of goods that are usually insured (Cargo marine insurance)
- Bulk cargo, liquid cargo, bulk cargo
- Super long, super heavy goods
- PV Oil, PV gas, PETEC
- PetroVietnam ferterlizer and chemicals corporation
- Hoa Phat joint stock company, FPT
- Vicem Butson cement joint stock company
2.2.4 Characteristics and Requirements of major customers
PVI's primary customers for marine cargo insurance are large enterprises engaged in international trade, including companies exporting goods abroad and importing products into Vietnam While PVI serves a diverse customer base, these major corporations represent the core segment benefiting from this insurance coverage.
Customers who use this insurance service often buy insurance for large shipments, wholesale shipments, agricultural products, or frozen goods.
Customers purchasing PVI's marine cargo insurance seek transparency in the purchase and sale contract, ensuring clarity during the claims and compensation process in case of accidents or unforeseen issues.
Customers also expect the confidentiality of information before, during and after the contract takes effect and is enforced.
Customers require the cooperation of the company in saving time and costs in contract processing, as well as periodic insurance fees at a reasonable level.
Customers prioritize companies with strong reputations and excellent customer care, especially since their shipments typically involve high-value and bulky goods For this reason, PVI consistently strives to safeguard customer interests and maintain trust through reliable service and reputation management.
- Requirements from the enterprise to customers when making an insurance purchase
Fill in all information on the Insurance Claim Form (according to PVI's form)
Attached to the Insurance Claim Form, the customer needs to provide copies of the following documents:
+ Certificate of ship registration + Vessel's registration papers + Technical drawings of the ship (depending on PVI's request) + Minutes of inspection when delivering and receiving ships + Other relevant documents
Once PVI receives the request form and supporting documents, they will evaluate the submission and conduct an on-site inspection to assess the vessel's condition Following this assessment, PVI will issue comprehensive insurance policies to ensure the ship's safe sailing and operational security.
During the contract's validity, PVI requires customers to always comply and strictly comply with the terms written in the contract.
2.2.5 Insurance claim procedure of PVI
In the event of peril, loss, or damage to the Insured Goods, the Insured Person must promptly notify PVI Insurance using the Hotline or telephone number listed on the Certificate of Insured Timely notification ensures you receive essential support and guidance to initiate your claim process efficiently Contacting PVI Insurance immediately helps in collecting a complete claim file, facilitating a smoother and quicker resolution of your insurance claim.
- At the same time, immediately after detecting loss or damage to the goods, the Insured should note:
Claim immediately against the Carrier, the Port Authority, or the Consignee for any lost packages.
Unless there is a letter of protest, in no case will a complete receipt be issued for questionable goods.
When delivering a container, it is essential to ensure that the container is intact and inspected by qualified staff If the container arrives damaged, has broken seals, is lost, or differs from the transport document description, a delivery note should be prepared noting all abnormalities and broken seals for further investigation Proper inspection and documentation during delivery help prevent issues and facilitate accurate tracking and resolution.
Promptly request the carrier's or cargo consignee's representative to witness the inspection immediately upon discovering loss or damage During the inspection, if actual damages or losses are identified, they should file an official complaint to ensure proper documentation and claim processing.
It is essential to notify the Carrier's or Trustee's representative within 3 days of receiving the goods if the loss is not immediately detectable Prompt reporting helps ensure timely investigation and resolution of the issue Early notice is crucial for handling hidden damages or losses that are difficult to identify at the time of delivery Adhering to this 3-day notification requirement is vital for effective claims processing and maintaining supply chain integrity.
Business situation of marine cargo insurance of PVI
Figure 1: Proportion of premium revenue for marine cargo insurance at PVI in the period of
In the period of 2017-2019, the proportion of the revenue earned in marine cargo insurance among total revenue in the non-life insurance sector of the company slightly increased, from 2,99% in 2017 to 3.41% in 2019 The reasons for the upward trend were said due to the economic growth of Viet Nam, respectively 6.7%, 6.9% and 7.2%
OECD National Accounts, 2022) in the year 2017, 2018 and 2019 Business was being developed and expanded rapidly, thus, it boosted the needs of buying insurance, especially marine cargo insurance as waterways are the cheapest means of carrying goods in commerce.
The COVID-19 pandemic in 2020 led to widespread social distancing and business closures, significantly impacting the non-life insurance sector, especially marine cargo insurance, with a 7.55% revenue decline compared to 2019 The global spread of COVID-19 caused a sharp reduction in international and domestic trade, decreasing customer demand for marine cargo insurance However, by 2021, PVI achieved a remarkable recovery, with marine cargo insurance revenue increasing by 1.5 times compared to the previous year, driven by the rising proportion of Vietnam's import and export activities despite ongoing pandemic challenges.
2.3.2 Business situation in the period of 2017-2021
Figure 2: Revenue, Claims & Lost Ratio of PVI’s Marine cargo insurance line
From the available statistics in Figure 1, it can be seen that the Marine Cargo Insurance line of PetrolVietnam Insurance has been developed and exploited quite effectively In particular, revenue from premiums was witnessed to increase at an accelerating rate over the years reported, between 2017 and 2021 During the year 2020, however, a rather significant dip is experienced This unexpected drop can be explained as a consequence of the Covid-19 outbreaks in recent years However, since the export of Viet Nam is not too severely affected, the loss of revenue has somewhat been mitigated In the following year, as the economy started to recover from the impact of the pandemic and marine transport again increased, the company had an excellent recovery in this line of insurance.The especially large difference in the years’ revenue demonstrated that the company’s strategies and directions have been effective in helping it adapt to the current state of affairs.
Marine cargo insurance claims for PVI have followed a different trend compared to other insurance types, influenced by factors such as cargo content, shipping routes, and peril occurrences While claims fluctuated in the first three years but remained low overall, 2021 saw a sharp rise in marine losses due to increased natural disasters at sea This surge significantly impacted the company's losses, with the 2021 loss ratio skyrocketing to several times higher than previous years Despite a 30.16% revenue growth from 2020 to 2021, the claims growth rate surged by 341.37%, highlighting the substantial rise in marine cargo insurance losses during that period.
PVI’s marine cargo insurance business demonstrates strong operational effectiveness, reflected in a low loss ratio and a high growth rate Despite recent revenue fluctuations, the company's consistent performance highlights its resilience and competitive edge in the marine insurance sector.
2020, and a surge in loss in 2021, they were cause by external factors that is commonly suffered by other firms as well.
Solutions and recommendation for PVI
Company development orientation
Despite the challenging epidemic developments in 2020, PVI leveraged its strong internal resources to stay committed to a strategy focused on profitable growth linked to efficiency Maintaining this momentum into 2021, the company’s Board of Directors and the entire PVI system remain dedicated to this proven strategy amidst the "new normal." According to the Vietnam Insurance Association, PVI holds a significant 19.55% market share in the non-life insurance sector, including marine cargo insurance, solidifying its position as the market leader.
In the upcoming years, it is anticipated that the insurance market will continue to face many difficulties and challenges when the risk factors of epidemics, economic growth are still significant However, with the results achieved in the first 6 months and especially the No1 ranking in terms of market share, PVI is having specific plans to accomplish the business development plan of the company in the next 3 years.
Accordingly, PVI continue to set targets for sustainable growth while maintaining efficiency; double-digit revenue growth and high return on equity; continuing to maintain the leading position in market share, etc Along with that, PVI improve the financial ranking to ensure sustainable and effective development not only in the domestic market but also in the regional and world markets.
PVI is committed to maintaining its leadership in commercial and industrial insurance through continuous innovation, operational improvements, and digitization of sales and claims processes By enhancing efficiency and delivering greater value to customers, shareholders, and partners, PVI aims to strengthen its retail system domestically This strategic focus supports the company's steady expansion into the Southeast Asian market, positioning it for sustainable growth and regional presence.
PVI is dedicated to maintaining strong shareholder partnerships, implementing effective international-standard governance and business strategies, and adopting flexible management practices Through advanced human resource policies that recognize individual and group dedication, the company is confident in achieving its 2022 objectives and pursuing sustainable long-term growth.
Recommendation and suggestions
3.2.1 Suggestions for PVI Corporation 3.2.1.1 General solutions a Build up management software system
To optimize operations, the company must invest both financial and human resources into developing a robust core insurance application system It is recommended to acquire this system from reputable foreign suppliers with extensive global experience, ensuring it is tailored to PVI company's specific needs This advanced system will efficiently manage the entire insurance lifecycle, including premium offerings, policy issuance and management, loss declarations, claim updates, indemnity processing, reinsurance handling, and third-party claims Additionally, enhancing human resource management is essential to improve operational efficiency and service quality.
In order to have a team of staff who are technically proficient, understand national and international laws, and have the art of communicating and dealing with customers, PVI need to build and implement a system Manage human resources effectively by:
- Job design: clearly analyze the job, give a specific and clear job description, as a basis for the management work to evaluate the work results.
- Building a system of staff standards: Company can hire a consulting company on human resource development to standardize the assessment of labor quality and work efficiency of the workforce in each position.
Developing a comprehensive salary and bonus system is essential for aligning compensation with employee performance This involves utilizing assessment results to plan and deliver targeted training, ensuring staff development aligns with organizational goals Additionally, establishing salary, bonus, and remuneration structures that reflect employees' capabilities helps motivate performance and supports overall business success.
- Develop long-term and short-term training strategies to equip professional knowledge as well as necessary skills for the workforce to meet the increasing requirements of customers It is possible to hire experienced foreign managers to improve the management skills of the staff
3.2.1.2 Recommendations for marine cargo insurance a Build, consolidate and develop the product system
Developing a long-term product strategy is essential to address the evolving and diverse needs of customers by building a comprehensive product system that integrates traditional international insurance offerings with advanced domestic insurance products, tailored to local laws and customs Additionally, PVI should prioritize research and development to create new products based on actual customer requirements and expand insurance coverage by increasing the proportion of imported and exported goods covered under domestic insurance policies.
PVI focuses on expanding its customer base by exploiting new markets and diversifying its product offerings, with a strong emphasis on fully capitalizing on the domestic insurance market To enhance customer satisfaction, PVI aims to improve all stages of the insurance process—including customer acquisition, claims assessment, and compensation—to deliver the best service and demonstrate that purchasing domestic insurance is more convenient and cost-effective than abroad Additionally, the company advises caution when offering coverage for high-loss-rate items to effectively manage risk and maintain financial stability.
Full wood insurance, iron and steel cargo insurance, and sea freight cargo insurance with "shortage of weight by weight" extension are essential coverage options for businesses dealing with large losses and operational inefficiencies Companies must carefully evaluate their insurance policies, considering whether to continue coverage or implement appropriate rate increases to ensure sufficient protection Additionally, strict coordination with inspection companies is crucial to maintain accurate cargo assessments, enhance risk management, and optimize insurance terms for better financial security.
To be able to handle the sale and salvage of goods well, PVI need to take timely measures to avoid further loss, accurately determine the extent and cause of the loss, and at the same time avoid causing a delay in the compensation process In order to implement these solutions, in addition to the efforts of insurance companies, it is necessary to have support from the state, the government, related industries and especially the Vietnam Insurance Association.
3.2.1.3 Recommendations for Marketing and customer service a Improve service quality, build customer-oriented care policies
Our campaign emphasizes the importance of purchasing insurance to help businesses and individuals navigate unforeseen maritime challenges Besides offering tailored insurance products, the company adds value through expert advisory services on insurance operations, foreign trade, and maritime activities Additionally, we guide ship owners and cargo owners on managing incidents not covered by insurance, ensuring comprehensive support in overcoming maritime difficulties.
Building standard business processes, creating all conditions for customers in all stages from insurance offering, charging, information provision, advice on preventive measures, loss limitation, indemnifications Formulate appropriate development strategy and implement care and customer-oriented plan by standing in the position of the customer to understand the customer's wishes in order to fully and appropriately meet them. b Developing distribution channels for insurance products, developing traditional customer systems
To enhance business efficiency, PVI needs to cut its costs One of the cost reduction measures is downsizing the payroll of direct insurance officers To be able to do that,companies need to consolidate and develop a system of professional agents and insurance brokers to enhance and make the operation more efficient through training strategies and policies on insurance mode suitable for agents and brokers In addition to traditional distribution channels, companies also need to develop new exploitation channels based on the explosion of information technology in the form of B2B or B2C using e-commerce or online business To do this, companies need to deploy information technology systems in addition to core insurance software as well as cooperate with banks to meet the payment needs of customers.
Besides the existing traditional investment channels, the company needs to focus on the most effective financial investment as well as diversify the investment portfolio to ensure maximum investment efficiency of money from the industry reserve fund services and premiums to deliver better return on investment to create a competitive advantage in price.
As information technology continues to evolve, it is essential to enhance the infrastructure and adoption of digital tools across all aspects of business management Emphasizing the integration of e-commerce and online platforms, companies can effectively sell insurance products and services in a rapidly digitalizing marketplace Adopting advanced IT solutions enables businesses to streamline operations, reach wider audiences, and improve customer engagement through online insurance sales.
3.2.2 Recommendation for the related state agencies 3.2.2.1 There should be mechanisms and policies to encourage the change of insurance practices
The government should implement targeted policies to incentivize import-export companies to engage in CIF export contracts and FOB import arrangements These measures could include reducing import and export taxes for goods owners participating in insurance schemes in Vietnam, such as lowering sales tax or value-added tax, streamlining customs procedures, and granting higher import and export quotas to insured goods owners Such incentives will promote more secure and efficient trade operations, benefiting the overall competitiveness of Vietnam’s export-import sector.