As the CEO of VietinBank Insurance Company (VBI), Le Tuan Dung has many initiatives and outstanding achievements in management like restructuring the organisation by means of quality human resource development, strengthening cooperation with strategic partners, creating more new products and services for customers, and consolidating business sustainability in the current context of economic difficulty. In June 2014, he was named the Top 100 Typical Executive in the New Era in 2014. Vietnam Business Forum interviewed Le Tuan Dung. Tran Trang reports.
Could you tell us about VBI’s business results in the first half of 2014? What is the most important thing that brings success for the company?
In 2014, the insurance industry is facing a lot of difficulties due to the fierce competition among insurers, difficulty access to new client and markets, and changes in macroeconomic management policies. Overcoming these difficulties, VBI’s total premiums in the first six months of 2014 still rose 88.7 percent over the corresponding period of 2013. Specifically, the direct insurance revenue reached VND96.7 billion, doubling the value a year earlier. Reinsurance revenue was VND16.7 billion, up 41.8 percent year on year. In June 2014, VBI was praised by the Hanoi Tax Department for its outstanding fulfilment of tax obligations to the State Budget.
These achievements were resulted from the continuous effort of the entire company to study and create new products and services for customers. Besides, VBI had the constant companionship and trust of VietinBank as well as loyalty of partners and customers. The very companionship and trust create the success of VBI in recent years and generate strong motivations for VBI to complete outstanding tasks in following years.
These achievements were resulted from the continuous effort of the entire company to study and create new products and services for customers. Besides, VBI had the constant companionship and trust of VietinBank as well as loyalty of partners and customers. The very companionship and trust create the success of VBI in recent years and generate strong motivations for VBI to complete outstanding tasks in following years.
In order to provide more new products to boost business operations and bring more options to customers, what strategies will VBI take to pursue sustainable businesses?
To provide more services and utilities for customers, VBI has built the so-called bancassurance model to sell insurance through more than 150 branches by 6,000 employees of VietinBank.
Currently, VBI is the first non-life insurance company to deploy Bancassurance sales software to enable VietinBank employees to provide application forms for customers. The software also requires much shorter time to complete procedures than conventional ones. VBI has also carried out many promotion programmes and premium cuts for customers.
By boosting professionalism and efficiency of insurance businesses, in November 2013, VBI was granted the ISO 9001:2008 Certificate. The company was ranked 135th out of 500 fastest-growing companies in Vietnam (FAST 500) in the year. In the coming time, while maintaining corporate and project customers, VBI will continue to expand its retailing to sell insurance policies to personal customers to complete the Bancassurance model. The company will also intensify staff and agent training and improve compensation quality.
VBI is also a pioneering nonlife insurance company to take part in community development. The company has organised many pro-community trips to disadvantaged regions and visit disadvantaged persons. VBI presented gifts to wounded soldiers at the Thuan Thanh War Invalids Centre in Bac Ninh province, raised funds for flood victims in Ha Tinh province, sent gifts to Truong Sa soldiers, and gave presents to mountainous people in Ha Giang province.
To become a leading professional nonlife insurance company and a pro-community company in Vietnam, VBI is determined to promote its achievements and boost creativity and innovation to create new products and services for customers both in domestic and international markets.
What should entrepreneurs, particularly insurance entrepreneurs, do in the current tough time to play a greater role in the cause of socioeconomic construction and development?
Currently, market trends change very rapidly. This requires enterprises to adapt to new trends to be successful on the market. They also should actively take part in social activities to support persons in need.
As VBI is a new emerging insurer on the market, it has certain advantages in applying modern corporate governance and recruiting dynamic and adaptive employees to respond to the market quickly. Currently, the insurance market is in difficulty. For years, above half of nonlife insurance companies do not see any profit in their operations. Therefore, insurers should coordinate closely together to build a healthy, transparent and efficient insurance market.
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