Marine cargo insurance of BIC

Group:
Dao Quoc Hieu
Nguyen Anh Tu
Nguyen Tuan Anh
Nguyen Thi Diem My
Do Thuy Tien
Trinh Thi My Linh

Content

I. General Introduction

I. Marine cargo insurance of BIC

III. SWOT analysis

IV. Solutions deal with issues

General Introduction

Foundation and parents company:

- Founded in 1999, being join venture of BIDV bank and QBE
International Insurance Group from Australia.

ecame the first joint venture Insurance company in Vietnam Non-life insurance
d BIDV QBE Joint venture Insurance company.

January 1st 2006, BIDV acquired shares of QBE and officially changed name of th
any to BIC (BIDV Insurance Corparation).

General Introduction

2. Mission, vision, slogan:

A. Mission:

s committed to providing comprehensive financial risk mitigation solutions to c

B. Vision:

become one of the five largest non life insurance companies in Vietnam in ter
tal, market share and profitability.
- To develop BIC into a reputable insurance brand, as one of the BIDV
Financial Groups two main pillars of business operations.

General Introduction

2. Mission, vision, slogan:

C. Core value:

- Dedication to clients
- Trust
- Solidarity
D. Vision:

Secure finance, firmly future Beyond Insurance commitment

General Introduction

3. Subsidiaries and joint venture:

- 21 subsidiaries in Vietnam
- 2 joint venture: Lao Viet insurance
joint venture company and Cambodia
Vietnam insurance company

General Introduction
Products and market share in Vietnam:
A. Products:

+ Aviation insurance
+ Contractors/erection all risks insurance + Personal accident insurance
Contractors plant and Machinery insurance + Travel insurance

+ Machinery breakdown insurance

+ General liability insurance

+ Property all risks insurance

+ Marine cargo insurance

+ Fire and allied perils insurance

+ Marine hull insurance

+ Business interruption insurance

+ Motor vehicle insurance

+ Money insurance

+ Credit and Financial risks insurance

General Introduction
Products and market share in Vietnam:

. Market share in insurance market (2013):

General Introduction

5. Revenue, Profit, Growth rate:

A. Revenue: (million dong)

General Introduction

5. Revenue, Profit, Growth rate:

B. Profit: (million dong)

General Introduction
6. Customer target:

BIC targeted customer: individuals to corporations.

me notable corporations using BIC insurance: Viglacera, Vinashin, Hoa Phat group
Linh group and Vinaconex.

Marine cargo insurance of BIC

rief introduction about marine cargo insurance of BIC:

ine hull insurance: compensate insurant for loss or physical damage to the
aused by risks within insurance coverage.

tection and Indemnity (P&I): compensate insurant for liabilities incurred by collis
another ship.

ne cargo insurance: compensate insurant against material damage or unexpecte

oreseen loss of goods during transit by sea, air or road.

Marine cargo insurance of BIC

2. Insured and uninsured cases:

Risk

Fire or explosion
Standing, grounding, sinking or capsizing
of a vessel or craft barge
(V means insured, Overturning or derailment of ground
transport vehicle
X means uninsured)
Collision or contact of vessel craft, or
conveyance with any external object other
than water
Discharging of cargo at the port of disaster
Earthquake, volcanic eruption, lighting
General average sacrifice
Jettison
Entry of sea water, lake water or river
water into vessel, craft, hold, conveyance,
container or place of storage
Total loss of any package lost overboard or
dropped whilst loading on to or unloading
from vessel or craft
All risks of loss of or damage to the subject
matter insured except exempted losses

ICC (A)
V
V

ICC (B)
V
V

ICC (C)
V
V

V
V
V
V
V

V
V
V
V
V

V
X
V
V
X

Marine cargo insurance of BIC

Revenue from marine cargo insurance of BIC:

3, marine cargo insurance brought about 75 billion dong in total revenue 1135 b
which made up 6.6% of total revenue of BIC.

et share of BICs marine cargo insurance in comparison with other insur

ies:
Revenue of marine cargo insurance companies in 2013(billion dong)
60 45 40

PJICO
253

BIC
75

385

Bao Viet
PVI
MIC

521

GIC
AAA

SWOT analysis
1. Strength:

nded in 1999, BIC has 16 year experience in providing insurance which make th
tand customers demand to satisfy customers.

g established by one of biggest bank in Vietnam BIDV, BIC has a strong source
which can help them satisfy many difficult situations.

ng diverse insurance packets for customers, from individual (motorcycle insuran

insurance,) to corporation (P&I insurance, marine cargo insurance,)

se subsidiaries spread all regions in Vietnam (21 subsidiaries) bring about the mo
rtable condition for customers.

SWOT analysis
2. Weaknesses:

has less market share than 3 biggest insurance companies in Vietnam: Bao Viet,
CO and also international companies such as Manulife (Canada). This makes BIC
t in finding new customers.

has joint venture with Laos and Cambodia companies to expand market but sti
enditure in bigger markets.
- BIC has older and smaller marinne cargo insurance working system
than big
companies especially international companies.

SWOT analysis
3. Opportunities
- Expanding the market to other countries in ASEAN and Pacific region.

+) Vietnam will join ACE at the end of 2015, participate in TPP at the beginnin
of 2018.
+) Finding the new market, increasing the number of foreign customer.
- Expanding strategic corporation with companies in other countries.

+) BIC has signed strategic cooperation agreements with Fairfax Group, a lead
insurance from Canada.
+) Increasing total capital to VND1000 billion.
+) Improving marin cargo insurance system

SWOT analysis
4. Threats:
- Vietnamese companies usually have habits buying CIF and selling FOB in
trading activities.
- The fierce competition from not only foreign but also domestic marine cargo
insurance opearating in Vietnam: ACE, BaoViet, AIA, Tokio...
- Impaction from the economic recession can make mining products Marine
Insurance relatively more difficult.

- Declining of shipbuilding and shipping industry in the country, along with worr
about the high risks, leading to marince cargo insurance operations declined.

- Pirates in the ASEAN region continued to rise, leading to a risk of an increase

rate of compensation.

Solutions deal with issues

- Increasing the competitive advantage by:
+) Joining stock with other foreign marine insurance firm.

+) Forcing advertising activities to promote the benefits customers receive wh

using their services

- In reducing risk, BIC should restrict exploing of small vessels with a capacity of
under 1,000 GT, this is the type of ship have much risk of loss and management
features weak vessel, inexperienced.

- Expanding cooperation with foreign marine transportation firms.

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