Bao Viet Life Insurance - Nam Dinh Branch

An intima friend

Seven years seeking and studying customers patiently to expand its market share, Bao Viet Life Insurance - Nam Dinh Branch has gradually affirmed its position as an intimate friend people in Nam citadel.

“We started to do business in life insurance service in Nam Dinh since February 1997. Up to now, our market share in this market has accounted for 70% in the locality” said Tran Huu Chieu, Director of Bao Viet Life Insurance - Nam Dinh Branch. His confidence has obviously shown great efforts made by officers and workers of the company, which have generated encouraging results over the past years of development.

Firm steps forwards
The life insurance service first appeared Nam Dinh in February 1997 thanks to Vietnam Insurance Corperation’s endeavour of launching the business on this kind of product during 1996-1997. The first life insurance service of the branch (under the Nam Dinh Bao Viet Company at that time) was scheduled 5 or 10 years. “The difficulty against our business was how to prove interests of this special service for the local people. Despite whole-hearted efforts, during the first years of business, we only signed 1,000 contracts with total turnover of VND400 million”- said Mr. Chieu. However, what we got during initial years of business has enabled us to realize a potential market for life insurance service in the province of Nam Dinh. This is why a breakthrough in the business with total turnover of VND1.4 billion was made in 1998.
March 2nd 2001 marked a really wide stride of Bao Viet Life Insurance - Nam Dinh Branch; this was the time of turning into an autonomy business establishment due to the separation from Nam Dinh Bao Viet Insurance Company. This event showed a great leap made by the branch in raising its market share in competition with other branches of world famous life insurance corperations such as Prudential, Manulife and AIA. During 2001-2003, the annual growth of the branch reached over 30%. In contrary with the modest number of life insurance contracts in first days of operation, the branch successfully raised its contract up to the number of 20,000 by the end of 2003. Bao Viet Life Insurance - Nam Dinh Branch has won 70% local market and gained a growth of turnover over consecutive years; from 12 billion (in 2001) to VND21.5 billion (in 2003).
For Bao Viet Life Insurance – Nam Dinh Branch, one of important factors to success was an emphasis on developing the staff of consultants. During last years, consultants have got mature in terms of both quality and quantity. Until 2004, consultant staff totaled 182 people in a joint effort to expand business across the province. In addition, the branch regularly sets out plans on professional knowledge improvement for consultants and helps them to catch up with increasing requirements of business renovation and competitiveness in insurance service providing, therefore, they are trained to have an effective and enthusiastic working style. “ But for them, we wouldn’t succeed in business today”- said Director Tran Huu Chien.

Overcome difficulties to find new way out
As pure agriculture province, 80% population of Nam Dinh engages in the agriculture sector, local people’s income remains at a low rate. The concept “a bird in hand is worth two in the bush” has taken root in the mind of farmers. They don’t put much trust in insurance life products. In their thought, it is inevitable to be at risk. Some thinks that buying life insurance is a think of today, however, payment is a thing of dozen years later”. This makes a great impact on tastes for life insurance services and the market expansion goal that Bao Viet life insurance - Nam Dinh Branch has striven for. Furthermore, increasing number of foreign life insurance services present in Nam Dinh makes the competition become sharper. The branch exposes its weakness in marketing and product advertising while Prudential, Manulife and AIA have made effective and creative approach to the market. “It is indispensable that competition leads to development and through competition, we can fully understand of our strength”- Mr. Tran Huu Chieu replied when being asked about such reality.
In face of such difficulties, Bao Viet Life Insurance Nam Dinh branch has set up specific plans, which pay special attention to customer care as an essential factor. The branch aims to provide best service and ensure the rights of customers. In addition, an importance is also attached to expand service network to residential areas and all ranks of people. The branch has collaborated with other provincial sectors and branches to deliver life insurance services to each commune as an attempt to facilitate local people in getting access and awareness of insurance services. In 2004, “life insurance products in life” program will be periodically broadcast on Nam Dinh Television. This activity shows a courageous step to affirm the role of life insurance services in local people’s life and socio-economic development.
Constant renovation and self-changing are the only guideline to maintain the clienteles who have used the life insurance services in general and products of Bao Viet Life Insurance Nam Dinh Branch.

Until early 2004, the branch has provided all of 20 existing services of Vietnam life insurance in Nam Dinh and gained the favour from clients.