INTERNSHIP REPORTDAI-ICHI LIFE INSURANCE VIETNAM

7 2.5 General instruction in Sales of Life insurance products...9 Development of relationships and development needs...9 2.6 Step on sales of Life Insurance Products...10 2.6.1 Find cust

NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAMS

INTERNSHIP REPORT DAI-ICHI LIFE INSURANCE VIETNAM

Student’s ID: 11122622

HANOI, 2016

TABLE OF CONTENTS

INTRODUCTION 1

CHAPTER I: GENERAL INFORMATION 2

1.1 Establish and Development 2

1.1.1 Dai Ichi Life 2

1.1.2 Dai Ichi Life Vietnam 2

1.1.3 Cau giay Headquater 2

1.2 Company structure 3

Chapter II: BUSSINESS ACTIVITIES 5

2.1 General Information – Strategy of the company 5

2.2 Products 5

2.3 Customer 5

2.4 Staf 6

2.4.1 Financial Advisers 6

2.4.2 Commissions Policy 7

2.5 General instruction in Sales of Life insurance products 9

Development of relationships and development needs 9

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

CONCLUSION 22 REFERENCES 23

LIST OF FIGUR

Figure 1 1 Structure of Dai-ichi 3

Y Figure 2 1 Number of customers 6

Figure 2 2 Dai-ichi Sales Process 9

Figure 2 3 Number of Customers 13

Figure 2 4 Number of Financial Advisor 14

Figure 2 5 Annual Return 15

Figure 3 1 Market share 19

LIST OF TABL

Table 2 1 Commission rates based on revenue (%) 7Table 2 2 Development assistance (Dai-ichi) 8Y

Table 3 1 Headline Insurance Forecasts (MI -2016) 18

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 mostimportant 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

1.1.1 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 thecompany'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 fiscalyear 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 nationwidedistribution network covers more than 40 thousand professional consultants,working full-time As at May 3/2006, Daiichi asset management sectoramounted to more than 276 billion dollars to more than 8.5 million passengersRank

With over 100 years of experience in the life insurance industry andstrong financial strength, Dai-ichi Life has extensive knowledge about ourproducts, effective management of financial and operational capacity in linewith motto "customer First" But this dominance is leverage to Dai-ichi Lifecontinues to develop and deliver the products and the best service tocustomers

1.1.2 Dai Ichi Life Vietnam

Dai-ichi Life Vietnam is a member of "The Dai-ichi Mutual Life CompanyInsuarance"

Dai-ichi Japan established the representative office in Vietnam since

2005, Dai-ichi has accumulated valuable experience in the life insurancemarket Vietnam

In 18/01/2007 Insurance Company Dai-ichi Life Vietnam wasestablished through the transfer of life insurance company Bao Minh CMG.With this decision, Dai-ichi has demonstrated long-term commitment toVietnam life insurance market and look forward to contributing positively tothe growth of this market

The birth of the Dai-ichi Vietnam is an important milestone in thehistory of 105 years of operation of the Dai-ichi Life Japan and it is also notableevents in the history of the transfer, merger of companies in the field financialservices in Vietnam.

Dai-ichi Vietnam have 3 missions:

products and services for life insurance the best and most advanced

1.1.3 Cau giay Headquarter

Through collaboration with the Hung Phat Dai An Limited Company, ichi Vietnam opened the 2nd office in Hanoi

Dai-The new office is located at 12A Floor, No 169 Nguyen Ngoc Vu, TrungHoa 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 tocustomers locally

Cau Giay District to the west of Hanoi city, the gateway to an importanttraffic of the city, connecting with the North West Province With economicstructure towards industrialization - services, infrastructure, Cau Giayincreasingly improved, attracting more business investment, contribute toeconomic development It is also the county focus of many major universities inHanoi, many neighborhoods were built in this area to make the face of Cau Giayrapid change

With rising living standards, the protection and financial accumulationagainst risks become one of the essential needs of the people

Figure 1 1 Structure of Dai-ichi

accountancy, treasurers, secretary,… responsible for given objectives andhelping other departments

to general director and have responsible for Sale Result

Middle of Vietnam: Direct the sale and marketing programs in their area,Report Sale result for sales director

competition in company

with customer and provides the best finance solutions for them

General Director

Bussiness organize

and IT Department Sales director

Area Sale Directors

Chapter II: BUSSINESS ACTIVITIES

2.1 General Information – Strategy of the company

Dai-ichi is an 100 years experienced-company in Japan, but they are still

a follower in Vietnam life insurance market On the other hand, they have strong finance situation as they are 100% foreign investment company

Dai-ichi follows a strategy that focuses mainly in volume and less inprofitability In more details, the company attempts to delivers large quantities

of its life insurance products in order to increase it market share

In detail, The number of customer have remarkable raising, from 700 thousands customers to 1020 thousands The annual return (considered as sales volume) of Dai-ichi Vietnam is increasing significantly The Annual return

in 2015 increased as 3 times as in 2011 at 3540 billion vnd

Even though the Net profit remains at low level and even suddenly

dropped in 2015 as the high cost for maintain the agencies and other activities, the company still considered its a successful year as the increase of Annual return

One of Dai-ichi Life Vietnam’s top priorities at the beginning of a new decade is to move from the current fifth to the fourth position in terms of

market share “Our parent company wants us to hold 10% of Vietnam’s life insurance market by late 2012,” Fujii said

2.3 Customer

Life insurance products have many unique characteristics One of them is

“Hidden demand” mean customers hardly realize the needs of an insuranceprogram until the Financial Adviser show it to them This characteristics givesFinancial Advisor very important role in the Business activities of every Life

2.4 Staff

2.4.1 Financial Advisers

Financial Advisers is the representative of the company, as a bridge between companies and clients They directly performing insurance operationsexploitation, through counseling clients with the best financial solutions

There works is challenging, requires not only professional knowledge about products, sales techniques but also patience

Dai-ichi Vietnam determined: To be successful on the job, a Financial Adviser should meet at least 50% of the following characteristics:

To maintain the workforce and business development, the company is constantly recruiting new Financial Advisers, training them through

professional programs, aimed at provided the necessary knowledge’s to be able

to become excellence Salesperson

2.4.2 Commissions Policy

The Commission systems of Dai-ichi is very attractive and become the Motivation for the Financial Advisers It help the company to keep the best Salesperson and attract the new ones

Dai-ichi have builed an generous commission systems that can attractive many Salespeople

Table 2 1 Commission rates based on revenue (%)

Duration

(year)

1st yearCommission

2nd yearCommission

3rd yearCommission

Following YearCommission (4 - 20)

Charge Commission

Table 2 2 Development assistance (Dai-ichi)

22.000.000 26.999.999 20

2.5 General instruction in Sales of Life insurance products

Process operators insurance products is a closed process consists of five steps:

Specifically, these steps can be represented through the diagram:

Customer Search

Development of relationships and development needs

Designing appropriate insurance

solutions and

proposals to

participate

Reaching potential customers to make

an appointment

Customer Service

Figure 2 2 Dai-ichi Sales Process

2.6 Step on sales of Life Insurance Products

2.6.1 Find customer

Finding clients is the first step in the process of insurance operators.Insurance products are special types of products, although still able to useadvertising methods, introduce the product to the customer, but because of theinvisible, can not be seen or felt through the words advertising regular report.For tangible products consumers to easily find suppliers when needed, theycan also through vision and touch directly consider the comparison betweenproducts of different businesses can choose for themselves the mostappropriate product Meanwhile, very few, who actively seek customersinsurance products, especially for Vietnam market today There are manycauses for this condition, largely due to awareness and understanding of thepeople of Vietnam to narrow coverage, they did not realize that the nature andbenefits of an insurance product can give them and their loved ones Orsometimes themselves nor each person discovers their own needs on an

employees Financial Advisor very important, they will have to find thesecustomers, arouse him and advisory needs to customers can choose forthemselves 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 contactwith customers through a variety of ways to find out the necessary informationabout the customer, such as career, financial condition, age , needs protection, Dai-ichi Vietnam is implementing a number of search methods such as directcustomers:

Survey information directly: through the survey information, marketresearch on protection needs for each customer; the survey information isdrafted in the form of alternating choice questions open questions suitable formany different subjects on age, gender, occupation, , then be printed into andsent 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 Advisoruse The advantage of this method is easy to reach customers, easy to deal,negotiate, work often takes place smoothly and quickly by have a goodrelationship with customers However the downside of this approach is onlyused on the first time when the new Financial Advisor work by thisrelationship are limited

Get to know and build relationships with new customers to consult Thisapproach met a lot of difficulties by first encounter difficulty can createcustomer trust to get the necessary information about them, though FinancialAdvisor full proof of the serious legal and their job is done Moreover whencustomers reach this way often happens status from their uncooperativebecause they do not have time and feel burdensome

Through centers such influence: The head of population groups; Heads

of agencies, organizations and enterprises; Individuals or organizations withinfluential to many audiences This method advantage of influence or use theprestige of the mogul, a voice for the public to showcase the company, productinsurance products, create confidence, which can collect information aboutcustomers

2.6.2 Approach to potencial customer

After the search for customers, Financial Advisor has a client list withcertain information Based on that information, will be screened and selectedFinancial Advisor out of reach potential customers Usually Financial Advisoruse the phone to contact potential customers Calls to introduce companies,especially insurance products that Financial Advisor likely that consumersdemand Contents of the call usually summed up in talk time under 5 minutes.Financial Advisor highlighted the benefits of insurance products and thesuitability of the product to the customer conditions

If customers feel concerned and demand, Financial Advisor setappointments will apply directly to the time and place that is convenient for thecustomer

If the customer refuses, Financial Advisor sought to ask why andthoughts as well as the needs of customers about products or suggestionsabout other insurance product This is an advantage to be able to study thedirect insurance market in Vietnam through direct interviews with customers

Reaching potential customers to see you as an important step andrequire deft handling skills and professional qualifications of a FinancialAdvisor This is the first time contact with customers Financial Advisor tointroduce the company and the company's products If said flexible handlesituations, Financial Advisor can create the initial good impression withcustomers, thereby facilitating the next step of the mining operations ofinsurance

2.6.3 Develop relation and needs

Once set up an appointment with the customer first, Financial Advisorshould take it as a basis to develop a relationship with them NormallyFinancial Advisor customer will have to see you several times to consult andnegotiate on matters relating to the product and the condition of the individualcustomer

In this step, Financial Advisor should wield the ability to communicatewell, make the right impression and customer trust These appointments notonly discuss and discuss the work that needs visit and share sincere, interested