Pjico ranks No.4 among most reputable insurers 2016

Thuy Ha

11:00 AM @ Wednesday - 09 November, 2016

Sheraton Hanoi recently host a ceremony to announce and grant certificates for the top 10 reputable Vietnamese insurers 2016. According to the ranking, Petrolimex Insurance Corporation (Pjico) appears number four in Vietnam Top 10 Most Reputable Insurers 2016.

Pjico Deputy General Director, Le Thanh Dat, receives the Vietnam Top 10 Most Reputable Insurers 2016 certificate granted by Professor John A Quelch – Vice President of the Harvard Business School and Nguyen Anh Tuan – Editor-in-Chief of the Boston Global Forum and a member of the Harvard Business School Global Advisory

The ranking of Vietnam Top 10 Most Reputable Non-Life Insurers 2016 was announced by Vietnam Report on the basis of three key criteria: (i). Financial Capability; (i). Media Credibility and (iii). Customer satisfaction towards insurance products and services offered by insurance companies.

The assessment was also based on a corporate investigation conducted in June, 2016 on the growth of capital, revenue and profits as well as development plans for new products/services and business prospects of insurance firms for 2016.

To make it to No.4, Pjico has satisfied all the criteria mentioned above. With a network spreading across the country and with hundreds of diverse products customised to suit various clients, Pjico has offered numerous options, maximising insurance interests and ensuring most convenient services for clients. At a conference held in July to review business outcome in the first half of 2016 and work on business plans for the second half of 2016, Pjico showcased a considerable growth in business activities of insurance packages.

Particularly, turnover from car insurance reached nearly VND480 billion (US$21.5 million), a 9 per cent rise over the first six months of 2015.

Turnover from health insurance in the first half of 2016 increased by 13.5 per cent to VND124 billion (US$5.6 million), notably in healthcare insurance, as compared to the same period last year.

In regard to the asset-technical insurance package, Pjico maintains its strategy to focus on customers and enhance service quality whilst reduce business in high risk areas and/or areas with big loss such as fire insurance. Nevertheless, revenue in the insurance package shows sign of recovery in 2016 following a standstill and slight decrease in 2015. Revenue from the asset-technical insurance in the first half of 2016 netted VN215 billion (US$9.6 million), roughly 7 per cent higher than the first half of 2015.

Bancassurance or bank insurance model is another insurance package that records significant growth, with revenue in the first six months reaching VND70 billion, a 40 per cent increase as compared to same period last year. Bancassruance still maintains a growth higher than the average growth of the whole Corporation in 2015.

Upon deals signed with big banks in 2015, this year Pjico focused on promoting bancassurance through the bank sales channel and witnessed stable turnover. Currently, Pjico is negotiating to sign contracts with new partners including: Vietcombank, HDBank (sole partnership in car insurance and private house insurance), VPBank, and Martitime Bank (health care insurance), among others.

In order to comprehensively fulfill business plan for 2016 in regard to revenue, profit, expenditure and debt management; maintain and reinforce the sustainable, secure and professional business management throughout the whole system, Pjico has put forward specific solutions as follows:

First, to closely follow plan and carry out drastic and synchronous instruction and management to fulfill business plan comprehensively (turnover, expenditure control, profit) in every nine months and the whole year (it sets to reach the targeted premium turnover of VND2,343 billion or US$105 million and profit of VND120 billion or US$5.4 million).

Second, to review business management mechanism, synthesise results to study and to have adequate adjustment, and assist the implementation of business plan 2016 if necessary. To assess the implementation of the Buy Car Insurance – Get Petrolimex Petrol Voucher programme and other promotion programmes, and movements encouraging the company staff to fulfill business norms 2016.

Third, to continue strengthening bancassurance, complete revenue plan beyond expectations and gradually approach global services. In regard to Bancassurance, it aims to accelerate partnership contracts and to sign new contracts in 2016. Regarding project insurance, it will focus on key projects carried out in the second half of the year.

Fourth, to regularly review financial investments and deposits to propose schemes for capital withdrawal, selling unpromising shares or shares which have gained expected profits.

Fifth, to complete and put into operation the professional management software Premia, integrated with the accounting software. To amend and complete customer service quality management software through car insurance settlement, reinsurance management software, personnel work, and so forth.

Six, to strengthen exploitation of and advertisements on the online sales channel in order to approach internet-based customers. To synchronously install billboards in some petrol stations across the country after completing a demand survey and statistics.

Above all, fair and accurate assessments of Vietnam Report in ranking Top 10 Most Reputable Insurers 2016 and impressive business performance in the first half of 2016 would be a driving force for Pjico to advance steadily.

Business outcome in the first six months of 2016:

+ Total premium turnover reached nearly VND1.2 trillion, an increase of 8.8 per cent as compared to the same period last year.

+ Total pre-tax profit was VND80.4 billion, an increase of 22.6 per cent as compared to the same period last year.

+ Expenditure control continues to be implemented under the instruction of Vietnam National Petroleum Group.

Vietnam National Petroleum Group - Petrolimex (PLX)

Committed to constantly making an effort to go further on the path of development and bring the lives of Vietnamese people and all Petrolimex employees to new heights in the future