Non-Life Insurance in Vietnam

TABLE OF CONTENT

TABLE OF CONTENT 2
INTRODUCTION 3
A. BAO MINH COMPANY PROFILE 3
B. MACRO-ENVIRONMENT ANALYSIS 4
Political Factors 4
Economic Factors 5
Sociocultural factors 7
Technological factors 7
C. MICROENVIRONMENT ANALYSIS 8
Competitor Analysis 8
Customer Analysis 9
Supplier Analysis 10
D. SWOT ANALYSIS 11
Opportunities 11
Threats 12
Strengths 13
Weaknesses 14
E. STRATEGIES FOR BAO MINH 16
SO combination 16
ST combination 17
WO combination 17
WT combination 18
CONCLUSION 18
REFERENCES 19

INTRODUCTION

Vietnam 's insurance industry is still very new compared to the world. It is of no easy task for local companies to keep pace with international insurance businesses. In the context of economic integration, competition is increasingly intense – it opens up opportunities as well as challenges for Vietnam 's insurance companies.

Bao Minh Joint Stock Corporation is one of the leading non-life insurance companies in Viet nam. After nearly 20 years of operation, Bao Minh has well established its position in the Vietnam insurance market. However, with the rising competition from other insurance companies, as well as changing environment conditions, Bao Minh has met with great challenges. In this assignment, macro and micro environment will first be analyzed to see opportunities and threats for Bao Minh. After that, the internal environment will be examined to discover the company’s own strengths and weaknesses. Last but not least, strategies for the company will be the output, based on the SWOT framework.

With strategies proposed, we hope that Bao Minh will further take advantage of its strengths and opportunities to thrive in the insurance market.

A. BAO MINH COMPANY PROFILE

Bao Minh Insurance Corporation, which was formerly known as Ho Chi Minh City branch of the General Insurance Company of Vietnam, was incorporated in November 28th, 1994. From 1994 to 2004, it was a 100% state-owned enterprise under the Ministry of Finance.

Bao Minh Corporation officially went into operation in early 1995, trading in the field of non-life insurance. Initial capital of the company was 40 billion VND with only 84 staff members and revenue reached 158.1 billion VND.

From October 2004 until now, it remains as a joint-stock insurance enterprise with 1,850 staffs and over 4,000 professional agents. Its network encompasses 18 Functional Divisions under the Head Office, 01 Training Center and 59 branches throughout the country.

Bao Minh’s vision is to become a leading joint-stock stock insurance corporation of Vietnam with multi-sectorial operations in the field of financial services with good brand name, high prestige and large market share for insurance business. Safety, happiness and success of both clients and society serve as the aim of their operations. Their motto of operations is “Bao Minh – whole-hearted service”.

Bao Minh’s scope of activities includes non-life insurance, reinsurance and financial investment. Bao Minh also provides consultancy and provision of about 20 groups of insurance commercial products for aviation, maritime, property, liability, casualty and automobile with a nation-wide operation network.

In terms of long-term investment, at present, Bao Minh is in joint venture with Union Insurance Company (UIC) which was set up in 1997 with the total investment of US$5,550,000. Capital is contributed by Bao Minh to a number of joint-stock companies such as Post Insurance Company, Saigon-Kim Lien Hotel, Saigon – Ha Long Hotel, Ninh Chu Hotel, KhanhHoa Passenger Car Company, National Appraisal Company, Ho Chi Minh City Security Company, TayNinh Travel Company with the total fund of VND22,560 billion. Bao Minh also participates in investment of bonds, government bonds, long-term bills.

Bao Minh is the first insurer of Vietnam who has successfully built the quality management system according to ISO 9001:2000 standard. Bao Minh has also made investment to the development of information technology and successfully carried out the project FAST-SAP (financial management with accounting software).

The quality of Bao Minh Insurance’s services has always been proven as one of the top reliable in recent years, which has been receiving positive feedback from their customers.

(Source: Bao Minh website)

B. MACRO-ENVIRONMENT ANALYSIS

Political Factors

In accordance with the transformation of the world economy, and the domestic as well as international change of the socio-economic relations, the Insurance Business Act 2000 faced the need to have a number of points amended. Therefore, on 24.11.2010 12th National Assembly of the Socialist Republic of Vietnam has issued the revised Insurance Business Law, 61/2010/QH12.

New Insurance Business Law has strict regulations in reinsurance activities in order to ensure the solvency of the insurance company in case of any loss. According to this regulation, the insurance companies in the country are only allowed to join reinsurance with foreign reinsurance companies that have the credible rating by international credit rating company.

Vietnam 's insurance market practices in recent years shows the increasingly fierce competition between insurers, where battling for market share is conducted widely by means of lowering service costs, increasing commissions. This has led to the many losses of businesses. To put an end to this situation and create a healthy business environment, the amendment provides that insurers should compete on the conditions, scope, fees, service quality, capacity and finance capacity, provided this competition must comply with the provisions of the law on competition and ensure financial security, premiums must be consistent with the conditions, scope, level of liability insurance.

Also related to the competition, the new Insurance Business Law prohibits collusion between insurers or between insurers and insurance buyers to split the insurance market, insurance market closed, prohibit abuse of positions and powers, force requirements, and prevent organizations and individuals involved in insurance to practice unlawful interference in the selection of insurers.

The growing number of insurance companies licensed to operate has also created pressure on human resources, popularizing the phenomenon of enticing employees, agents, so the Insurance Act 2010 prohibited enticing, bribing and threatening employees or customers of the insurer, insurance agent, and insurance broker.

Economic Factors

During the first six months of 2012, in Vietnam GDP increased by 4.38% compared to the same period in 2011, FDI reached U.S. $6,384 billion, an increase of 72.3% compared to the same period in 2011. Exports increased by 22.3% and reached $53.4 billion, but imports also increased considerably by 6.9% and reached U.S. $53.8 billion, resulting in trade deficit. Le Minh Thuy, director of the GSO 's Trade Department, partly attributed the rising import value to the fact that foreign-invested firms had bolstered imports of raw materials, accessories and equipment to serve exports (Vietnam Export Import News, 2012)

The economy continued to face many difficulties in production, domestic consumption with declining inventory and more than 40,000 businesses shut down. June consumer price index fell and continued to fall in July. State Bank has had a close direction to reduce the interest rate to 9%, the interest rate to 12% and adjust the loan interest rate to below 15%, thereby removing difficulties, unfreezing funds for business. Government policy has made 5% exemption for personal income tax and carried out corporate income tax reduction for small and medium enterprises, VAT stretch to remove difficulties for enterprises and employees.

Insurance industry continues to meet economic difficulties and challenges when credit growth in the first 6 months of the year was at only below 3%, public investment nearly 34% of GDP with public spending being continually limited. This had a direct impact on the asset insurance needs of the business and business administrative institutions, construction and installation insurance for the formation projects of fixed assets.

However, there are some positive signs for Vietnam’s economy. Vietnam is increasingly regarded as a production hub, providing skilled labor with lower costs than other manufacturing bases. The government aims to boost shipping volume further, and ports are being developed for container ships to draw export industries from China.

As wealth increases, more people are moving from bicycles to mopeds and cars, and compulsory lines including motor third-party liability coverage are helping fuel growth of the insurance market. Other new construction projects, particularly in the power industry, are also likely to need insurance.

Since Vietnam became a member of World Trade Organization, there has been increasing amount of FDI. FDI not only brings profit for foreign investors, but also plays an important role in providing sources of capital, technology transfer, exploitation of the country 's strength, skills training and job creation. Therefore, Vietnamese standard of living and income have been improved significantly.

Foreign insurers are allowed to participate in insurance market of Vietnam, which increase the exploitation capacity of the insurance market. These foreign insurance companies with rich experience on operating international market help transfer technology and train human resources. However, domestic companies are facing intense competitiveness with the occurrence of "brain drain". Many experienced employers are leaving domestic companies to work for foreign companies with higher salaries. (Web Bao Minh, 2012)

Sociocultural factors

Regarding the social factors of the external environment, growth in the population is a major factor pushing up the demand. The more people there are the bigger the demand for goods and services will be. But that’s not the only effect; the uncontrolled growth of population could also spur the probability of occurrence of risky events that are subjects to insurance; for example, overcrowding in public places of entertainment, traffic and pollution.

Vietnam, with a population of about 89 million people and a market of overall young insurance companies, provides an underexploited insurance market. (Huong Ly, 2012)

There has not evolved a habit of buying insurance in the country. Some customers only care about low prices but not the quality of the service or the creditability of an insurance company. Although the number of people buying insurance solely due to cheap prices declines over time, insurance companies need to always look after their diversification of the products as well as the customer care. Trade promotion is also important for businesses to increase the awareness of the Vietnamese about the importance of insurance towards the economy and the society, as well as to build the company’s image for the potential customers. (Thai An Law Firm)

Global climate change generates new risks and losses, which creates more business opportunities to the insurance industry. Along with that, modern customers are more aware of the impact of their consuming choices on the environment. An increasing number of people are willing to pay extra money for a homogenous product that is environment friendly. Many insurers have followed this trend by implementing promotional policies encouraging green and in-house gas emission reduction consumer behaviors (Vu, 2012).

Instead of passively bearing the losses, enterprises should be in the active position of developing and completing the service products that can catch up with the trends and preferences of their customers.

Technological factors

Nowadays, the application of information technology advancements in insurance companies, especially in non-life insurance companies, in Vietnam, is growing rapidly. Recently, a variety of products and services targeting insurance enterprises have been launched by a number of information technology solutions companies. Hardly is there any insurance company that does not own a website. However, there are only a few that allow customers to buy insurance and make payments online. Indeed, there is a pressure on insurance companies to upgrade the IT systems to catch up with the technology competition, given the obstacles, such as: budget constraints, ability to develop strategic application of technological advancements, unwillingness to change among staff members, etc. (Bao moi, 2011)

Investment in technology is not only an integrated and continuous process in every branch of the system, but for insurers, it is also an essential tool in maintaining privacy, one of the crucial aspects of the business. Experts believe that in the era of globalization, an insufficient technology use in business activities will definitely make the company left behind in the competition. In order to speed up in competition, businesses must have strategic and specific projects for technology application.

C. MICROENVIRONMENT ANALYSIS

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Competitor Analysis

Currently, 29 non-life insurers and 12 life insurers are operating in Vietnam. Despite the intense competition, the insurance market is expected to draw more companies, given its potential for growth.

During the first 6 months of 2012, total premium revenue of the non-life market is estimated at 19,956 billion, a growth of 15.15% compared with the same period in 2011.

The market leader in direct premiums written is PVI with 2,943 billion, an increase of 16.85% over the same period in 2011, making up 25.16% of markets share. Followed by PVI are Bao Viet (2601 billion, up 19.03%, market share 22.24%); and Bao Minh (1082 billion, down 6.49%, market share 9.25%); PJICO (975 billion, up 11.99%, accounting for 8.34% market share) and PTI (896.4 billion, an increase of 90.7%, accounting for 7.66% market share)

In recent years, PVI has achieved rapid growth and surpassed Bao Viet to become the biggest insurance provider. Being an insurance company of oil and gas corporations, PVI has advantages over its competitors in practicing insurance and reinsurance in all countries where the oil industry uses insurance services.

Bao Viet, which used to be the biggest competitor for Bao Minh for quite a long time, is endowed with nearly 50 years of experiences, good relationships with administration agencies and strong financial capability.

PTI, with its strong focus on marketing and branding activities, took over 3rd position of Bao Minh in the first quarter.

Besides main local competitors, Bao Minh also faces challenge from foreign insurance companies. These companies have strengths in terms of finance, brand and reputation, but have disadvantages in terms of local market understanding.

With growing competitors, the atmosphere in the non-life insurance market is quite intense for Bao Minh. In order to increase the market share, Bao Minh should improve the quality of services, especially the settlement of compensation, to ensure the benefits of customers and minimize the complaints from customers in terms of compensation proceedings.

Customer Analysis

With nearly 20 years of operation, Bao Minh has established a relatively strong brand in the Vietnamese insurance market. Bao Minh has distributor network throughout the country. Customers of Bao Minh City include:

• Citizens

• Cooperatives

• Small and Medium Enterprises

• State-owned enterprises & large enterprises

• Joint ventures & foreign companies

• State agencies

• Re-insurance companies

Unfair competition between the non-life insurance companies has resulted in customers reaping profit by all means. Some customers demanded lower fees, or fees other than commissions, as well as compensation (although the law does not allow). Others only interested in low price but do not pay much attention to the quality of services and solvency of the company. More often than not, the contracts won by insurance companies are still based on “close” relationships, or by introduction from superiors.

However, today the majority of customers not only expect insurance at a reasonable premium, with product diversity and ability to meet their actual needs, but they also look forward to fast and satisfactory after-sales services.

Supplier Analysis

Bao Minh has relationships with reputable reinsurance providers such as Vinare, Lloyd 's, Munich Re, Swiss Re,....

Bao Minh also has extensive relationships with world 's leading brokers such as Inchinbrok, Swire, Grass Savoye, Sedwich. These firms have introduced Bao Minh to major projects such as the construction of skyscrapers as well as Vietnam 's national-level projects in which contractors are the foreign investors in Vietnam.

Bao Minh has a network of 8,000 collaborators & the insurance agents who market insurance products to customers wishing to purchase insurance across the country. Annually Bao Minh holds periodic training for this team to enhance technical insurance for the purpose of maintaining the prestige of the company.

D. SWOT ANALYSIS

Macro and micro-environment analyses have shown the following OPPORTUNITIES & THREATS for the company.

Opportunities

• Relatively stable economic, political and society environment has contributed to the rising living standard of Vietnamese people. Demand for insurance will consequently be higher and higher.

• More complete legal system, especially the modification of the insurance business law in 2010 which created a more complete framework for insurance business. Simplified administrative formalities can create a favorable market for insurance companies, which leads to healthy competition between them and partly enhances insurance services quality.

• Increasing supply of FDI plays an important role not only for foreign investors, but also for reinforcement of capital, transfer of technology and modern business mode and exploitation of national potentiality. As a result, income living standard of Vietnamese will be increased.

• Investment Law and Enterprise Law since 01/07/06, which requires every company to buy insurance, has created a favorable condition for insurance firms to develop their products.

• The participation of Vietnam in WTO leads to the need of expanding insurance market. Vietnam insurance market will be drastically affected in scale, quality as well as stability in the world financial market.

• Large population of Vietnam (91.5 million – July 2011) is a potential market that has not been exploited effectively.

• Given the risks to the agricultural industry, the Vietnamese government will promote a pilot insurance program from 2011 to 2013 in up to 15 provinces and cities. This would protect farmers for losses caused by natural disasters and epidemics affecting rice, buffalos, cows, pigs, poultry, fish, prawns and shrimp. Insurers, including Bao Minh, are also examining insurance opportunities within the agricultural sector. Bao Minh is conducting a trial to offer insurance to coffee farmers for losses and business costs as a consequence of low rainfall. However, in general it has previously been challenging to make profits from agriculture insurance.

Threats

• Voluntary Health Insurance is now allowed to be widely deployed. This is a big competitor to Personal Accident Insurance.

• Increasing competitive pressure as more and more insurance companies are established. The competition of Bao Minh with other big and long-experienced companies is inevitable, especially the foreign ones.

• Ability to manage the macro economy is low. Increasing prospect of high ongoing inflation and deficit represent a general economic threat.

• Increasing customer demands for high-quality products and services results in pressure on business performance. As more insurance firms entered Vietnam market, this is also a threat for domestic companies like Bao Minh.

• Bureaucracy and authoritarianism in public administration. Although strong domestic control will ensure little change to Vietnam 's political scene in the next few years, over the longer term, the one-party-state will probably be unsustainable.

• Low consumer psychology of Vietnamese people: Consumer behavior is difficult to predict. However the tendency to prefer foreign products can be easily seen.

• Underdeveloped profession environment for insurance business partly caused by limited capacity of Vietnam 's insurance enterprises.

(Business Monitor International, 2009 and Bao Minh, 2012)

A thorough screening of the company’s internal factors, including management, marketing, finance, production, inventory, HR and IT systems have yielded the following STRENGTHS and WEAKNESSES.

Strengths

• Long experience in non-life insurance business (more than 18 years) has provided Bao Minh with precious knowledge to face and overcome difficulties as well as challenges in rapidly changed national and international business environment. Bao Minh consistently stays in Top 5 for market share and profits. (Q2/2012: 1,082 billion VND direct premiums written, accounts for 9.25% of Vietnam non-life insurance market- MOF statistics, 2012)

• Good reputation of the long-time built brand “Bao Minh”, which has been registered as sole trademark. Although there have been more and more foreign insurance agents come to Vietnam, their brands are still quite new to Vietnamese because of limit knowledge about Vietnamese habits and customs, which is less competitive compared to Bao Minh. Bao Minh is the exclusive sponsor for Thanh Nien Newspaper U21 Football Cup- 2012 and silver sponsor for SSEAYP 2012. (Bao Minh, 2012)

• Young, active and experienced workforce in the field of insurance (more than 70% are aged under 40 and 66% have high educational level). Bao Minh is also plenty of national collaborators who propagandize and exploit insurance services. Moreover, this team is trained periodically to enhance their specialist skills and therefore can help retain Bao Minh’s reputation. Bao Minh is one of the few insurance firms that attach special importance to human resource quality.

• Concrete and authentic planning process, well-implemented control function- including quick solution for complaint and compensation. The establishment of objectives is based on company’s capacity and prediction of actual market demand, therefore the disparity between results and business plans is not much.

• Information technology application in management- Bao Minh is the first Vietnamese insurance firm to invest in information technology development and apply the SAP system- the world leading resources managing system as well as SAMS, WAN, Lotus Notes mailing system and the most recent BEST 08 (Bao moi, 2009)

• Wide distribution network with 58 branch companies spreading all over the nation. Bao Minh is now possessing 37 head offices throughout Vietnam with 19.836 sq m offices. nation (Bao Minh website)

• Sound financial situation. Taking advantages of its activeness and reputation, Bao Minh has established a strong network with international insurance markets, signed more than 25 cooperation agreement with foreign (re)insurance firms such as Inchinbrok, Swire, Grass Savoye, Sedwich- these agents act as mediums between Bao Minh and large scale construction projects with national level contracted by foreign investors. Bao Minh also assigned them as supervise agents and vice versa.

• Good relationship with local authorities, especially where Bao Minh has branch offices. As a result, Bao Minh can effectively exploit its strengths.

• Higher and higher service quality: Bao Minh is the first insurance firm in Vietnam to be awarded ISO 9002-1994 certificate. Up to now, Bao Minh has successfully converted the ISO 9002-1994 quality management system into the new 9001:2008 system issued by Quarcert and BVQI, which focus on customers.

• Stable market: Bao Minh has built a traditional source of loyal customers by providing high-quality insurance products and services.

Weaknesses

• Incomplete organizational structure: lack of some important departments such as R&D (The result is unreasonable products structure that depends too much on some main insurance types, which can leads to vulnerability) and Customer Service (“after-providing-products” customer services do not have first-aid teams in big cities). In comparison with large-scale of the company, this shortcoming can hinder the development of Bao Minh in this dynamic era.

• Low linkage between business units and functional departments. Although Bao Minh has a high specialization level as every position has its own job description, some positions have not unify their functions and missions yet, which leads to difficulties in establishing close coordination between departments.

• Weak risk evaluation. Sometimes in order to gain more profits, Bao Minh underestimate the importance of risk evaluation, which leads to lowered quality in insurance exploitation and causes difficulties in re-insurance. Market share of Bao Minh decreased 6.49% in 2012 (Bao Minh, 2012) due to some customers lawsuits, for example with Dung Quat Company – Mar 2011

• Poor financial management, especially in reclaiming insurance premium debts. Despite the fact that backbone leaders of Bao Minh and its branch companies have well-accomplished their tasks, there are still many problems that need to be considered and repaired, as Bao Minh merely cares about recruiting staff with exploitation capacity but not management capacity, especially in financial aspect. As a result, this has impacted on business efficiency of the company. Short-term debt and total debt gradually increased from 2008-2011. (CafeF, 2011)

• Failure to utilize sole trademark: Bao Minh has not effectively exploit one of its strengths- Brand name. There are duplicated brands- “Bao Minh” confectionary company and “Bao Minh” industrial park invested by VINATEX.

• Limitation in direct investment of funds. Profit from insurance business activities of Bao Minh accounts for just a small proportion of return on investment. Generally, a good insurance firm needs to combine insurance business with investment of fund using the existing sources as well as reserve fund. However, Bao Minh has not really focus on this matter.

• High-level insurance specialist deficiency. This can be attributed to the ineffective and unsatisfactory encouraging policy of Bao Minh to its staff, especially the un-united salary- benefits system between head offices and member units (Unhealthy internal competitiveness). This partly lead to the human resource movement from Bao Minh to other foreign insurers (Tuoi Tre Online)

• Heterogeneous developments between local branch companies caused by differences in management level and limited qualifications of staff. (ACB Securities, 2012)

E. STRATEGIES FOR BAO MINH

Based on this SWOT analysis, a list of general strategies is concluded using the combination between each Strength, Weakness, Opportunities and Threats element.

SO combination

Using internal Strengths of Bao Minh to take full advantage of external Opportunities

1. Market penetration strategy: Making the most of the strengths such as Bao Minh brand name, 20 years of experience and excellent customer services to increase market share, especially the fact that Vietnam joined WTO has created many opportunities for business activities.

2. Product development strategy (high-quality oriented): Taking advantages of active workforce, prestigious brand name and absorb new insurance exploitation technologies as well as new high-quality insurance products from foreign firm simultaneously. Indeed, Bao Minh is examining insurance opportunities within the agricultural sector. Bao Minh is conducting a trial to offer insurance to coffee farmers for losses and business costs as a consequence of low rainfall.

3. Internationalized business strategy: The trend of integrating world businesses leads to the inevitable internationalization of Vietnamese companies. Since Bao Minh has good international relationships, famous brand name and strong financial potentiality, strategy to internationalize its activities to enlarge the market and increase profits is necessary. In the current times, Bao Minh has already followed this strategy by setting up strategic cooperation with France’s AXA Group.

According to Tran Vinh Duc, General Director of Bao Minh, through collaboration with AXA, Bao Minh City promotes its existing strengths, diversify products and insurance services, as well as having the opportunity to work with technical expertise of AXA. It contributes to building a strong brand reputation Bao Minh in Vietnam and in the international market. (Bao Minh, 2012)

4. Potential capacity exploitation strategy: Taking advantage of young workforce, sound financial situation together with opportunities when Vietnam has joined WTO.

5. Customer-based strategy: Initially, to maintain and develop its business activities, Bao Minh need to protect the market share that it is currently holding. Because of particular characteristics of insurance field, Bao Minh need to best fulfill its customer services activities- especially with traditional customers, which is more useful than finding new customers.

ST combination

Using internal Strengths to avoid or diminish the impact of external Threats

1. Market development strategy: This is an inevitable strategy to enhance the prestige of brand name, increase sales and profits after completed the market penetration strategy.

2. Famous brand name strategy: Brand name is one kind of assets that can bring huge benefit to enterprises. A famous brand name is acknowledged widely as excellent. Bao Minh is a well-known and trusted brand name by many people. However, nowadays many new insurance firms have been established (especially those from foreign), which involves the need of a brand building strategy for Bao Minh.

3. Backward co-ordination strategy: Taking advantage of the wide network with international top-notch insurance brokerage agencies, Bao Minh needs a strategy to maintain good relationship with these agencies to gain more customers as foreign enterprise to increase premiums.

4. Product development strategy (high-quality and diversification oriented): Taking advantages of active workforce, prestigious brand name and absorb new insurance exploitation technologies as well as new high-quality insurance products from foreign firm simultaneously.

WO combination

Improving Weakness to take advantage of external Opportunities

1. Diversified development strategy: Insurance products are easy to imitate due to shortage of copyright protection. In this fierce competition, Bao Minh needs to invest in R&D to bring out new products and continuously enhance their product qualities.

2. Associated business strategy: By this method, Bao Minh can be familiar with the mode of business and experience in management and insurance trading activities of other big foreign insurance corporations. For example, IBM is the main partner of Bao Minh in consulting, planning, training, updating and providing the latest IT solutions of the insurance industry for the period 2011 – 2015. (Bao Minh, 2012)

WT combination

Improving Weakness to avoid or diminish the impact of external Threats

1. Innovated management for development strategy: Bao Minh is descended from a state-owned enterprise. As a result, it is affected by the authoritative management, which made the business not really active and effective. Since the equitization, Bao Minh has improved much of its organizational structure and promulgated many new regulations to make it more appropriate for activities of a joint stock company, which is necessary for Bao Minh to accommodate itself to dynamic business environment of today.

CONCLUSION

Through analysis of external (macro and micro) and internal environment of Bao Minh, we have proposed several development strategies for Bao Minh. As such, if Bao Minh wants to keep their traditional customers and increases market share, Bao Minh itself must dynamically and innovatively adapt its business style to match with current environment and competition. Bao Minh should also build a strategic plan and select the best strategies which are both feasible and efficient to implement.

With the proposed business strategies for Bao Minh, we expect to contribute to the growth of the insurance industry in Vietnam as well as the rise in reputation of Vietnam insurance brands. We also hope our proposed business strategies will be applied to ensure Bao Minh stability and sustainable development, & maintain its position as one of the leading non-life insurance companies in Vietnam.

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Vu Trung Hieu, 2011. “Biến đổi khí hậu và ngành Bảo hiểm – Từ bị động tới chủ động thích ứng”. Retrieved November 17th, 2012 from Web Bảo Hiểm: http://webbaohiem.net/chuyen-de/75-ban-doc-viet/7566-bien-doi-khi-hau-va-nganh-bao-hiem-tu-bi-dong-toi-chu-dong-thich-ung.html

Vietnam Export Import News, 2012. Vietnam trade deficit hits $800m. Retrieved November 17th, 2012 from http://www.vietnamimportexportnews.com/vietnam-statistics/vietnam-trade-statistics/41144-vn-trade-deficit-hits-800m.html
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Hoang Ngoc Diep
Nguyen Thu Giang
Bui Le Thu Hien
Tran Minh Huyen
Nguyen T. Hong Trang (L)

Class: A1 CTTT- K48
Foreign Trade University

Group 5

Risk Management and Insurance

Bao Minh Insurance Corporation

An in-depth analysis and report of the company

References: ACB Securities, 2012. “Báo cáo phân tích Bảo Minh”. Retrieved November 18, 2012 from http://files.acbs.com.vn/TTPT/Bao_cao_phan_tich_cty/Viet/BMI/ACBS_Bao_cao_cong_ty_BMI_cap_nhat_07_9_2012.pdf Bao Minh, 2012 Bao moi, 2011. “Ngành bảo hiểm dốc sức với cuộc đua công nghệ”. Retrieved November 16th, 2012 from http://www.baomoi.com/Nganh-bao-hiem-doc-suc-voi-cuoc-dua-cong-nghe/45/7041523.epi Business Monitor International, 2009 CafeF, 2011. “Thông tin thị trường”. Retrieved November 17th, 2012 from http://s.cafef.vn/hose/BMI-tong-cong-ty-co-phan-bao-minh.chn FIA, 2008 FIA, 2012. “Tình hình đầu tư trực tiếp nước ngoài 12 tháng năm 2011”. Retrieved November 16th, 2012 from http://fia.mpi.gov.vn/News.aspx?ctl=newsdetail&p=2.44&aID=1128 Huong Ly, 2012 MOF statistics, 2012. “Bản tin thị trường bảo hiểm toàn cầu”. Retrieved from http://irt.mof.gov.vn/portal/pls/portal/docs/1440387.PDF Thai An Law Firm Tuoi Tre Online. “Nhân lực ngành tài chính: Nóng vì lương”. Retrieved November 18th, 2012 from http://vieclam.tuoitre.vn/vi/nha-tuyen-dung/cam-nang/nhan-luc-nganh-tai-chinh-nong-vi-luong.35A4E965.html Vu Trung Hieu, 2011 Vietnam Export Import News, 2012. Vietnam trade deficit hits $800m. Retrieved November 17th, 2012 from http://www.vietnamimportexportnews.com/vietnam-statistics/vietnam-trade-statistics/41144-vn-trade-deficit-hits-800m.html -----------------------