Vietnamese insurance trend and Japanese insurance trend
UNITED INSURANCE COMPANY (UIC) CEO share in a final year interview:
” From 2014, I start my business in Ha Noi, my wife and daughter are still in Japan. In Viet Nam, the society is safe, stable, abudent and delicious foods, I feel happy. I play golf in the weekend and cook by myself”
Mr..Okada Kiyoshi (51 years old), CEO of UIC (UNITED INSURANCE COMPANY) shared his life in Viet Nam
How is your business in 2014?
We are the biggest non-life insurance company in Japan. Until this time, our customer are still Japanese and Japanese company in Viet nam. However, we officially try to reach Vietnamese customer In this year. You might say 2014 is the most important moment for us to change our business direction.
Can you tell us the reason you change your business direction?
Japan non – life insurance market is about 8.000 billions Yen , while VietNam market is 120 billion Yen, Viet Nam market is about 1,5% of Japan market. So you could understand how big the non-life insurance market gonna be, and Viet Nam insurance market demand will grow fast included car insurance development . In Japan, The car insurance rate is 60%, a big number. In Viet Nam, people buy more car these days, car becomes popular in Viet nam. Base on analysis, the non-life insurance will increase, especially car insurance.
Are there any different from Vietnamese – Japanese thought about insurace, sir?
Maybe the biggest difference is ” Car is an expensive things, it isn’t a simple transportaton, it’s a “property”. Japanese buys car insurance because they think ” if there is any accident, the insurance will pay compensations”, However Vietnamese think that ” they buy insurance to protect their precious property”. This is the biggest different.
In 2015, which Vietnamese customer will you reach and develop?
We just mention about it, we will focus on car insurance. However, we are not simply selling the insurance. In Viet Nam, although the main transportation is motorbike and motorbike insurance is in the government law, the motorbike insurance rate is still 40%, too small. What is the problem? There is many reason : they could buy a motorbike easily without motorbike insurance or insurance date is terminated without any reminder to extend. This point show that the insurance habit is not exsit, people don’t understand all the benefit of insurance. We will connect to the car agency in order to supply car insurance to customer when they buy a new car. We have been processing this action from January 2015.
Car agency has already cooperated with many insurance company . How could you have any chance in this market?
We don’t simply ask the car agency to “sell UIC insurance” . We will make sure the car revenue of this agency grow up and they will never regret to cooperate with UIC. This is the different to others insurance company. Insurance company is the bridge between the buyer and the seller. For ex: when the customer extend their insurance contract, we will suggest them to ” buy a new car” or to ” take the car maintenance”, which will increase the sale revenue for car agency. We will let the agency know that “their sale revenue really grows up fast when they cooperate with UIC”.
Do you have any other market except car agency?
Yes, we will develop our channel by cooperating with some big distributor, not by opening a distributor channel by ourselves. For ex: With high level gym club ” you could earn your medical insurance if you are a gym member”. By this way, we give the benefit to gym club to attract more member to join in, this is another different in our business. By the way, we are looking for more customer to join in our insurance program. We want to create a long term relationship with our partner to receive more benefit together.
” From 2014, I start my business in Ha Noi, my wife and daughter are still in Japan. In Viet Nam, the society is safe, stable, abudent and delicious foods, I feel happy. I play golf in the weekend and cook by myself”
Mr..Okada Kiyoshi (51 years old), CEO of UIC (UNITED INSURANCE COMPANY) shared his life in Viet Nam
How is your business in 2014?
We are the biggest non-life insurance company in Japan. Until this time, our customer are still Japanese and Japanese company in Viet nam. However, we officially try to reach Vietnamese customer In this year. You might say 2014 is the most important moment for us to change our business direction.
Can you tell us the reason you change your business direction?
Japan non – life insurance market is about 8.000 billions Yen , while VietNam market is 120 billion Yen, Viet Nam market is about 1,5% of Japan market. So you could understand how big the non-life insurance market gonna be, and Viet Nam insurance market demand will grow fast included car insurance development . In Japan, The car insurance rate is 60%, a big number. In Viet Nam, people buy more car these days, car becomes popular in Viet nam. Base on analysis, the non-life insurance will increase, especially car insurance.
Are there any different from Vietnamese – Japanese thought about insurace, sir?
Maybe the biggest difference is ” Car is an expensive things, it isn’t a simple transportaton, it’s a “property”. Japanese buys car insurance because they think ” if there is any accident, the insurance will pay compensations”, However Vietnamese think that ” they buy insurance to protect their precious property”. This is the biggest different.
In 2015, which Vietnamese customer will you reach and develop?
We just mention about it, we will focus on car insurance. However, we are not simply selling the insurance. In Viet Nam, although the main transportation is motorbike and motorbike insurance is in the government law, the motorbike insurance rate is still 40%, too small. What is the problem? There is many reason : they could buy a motorbike easily without motorbike insurance or insurance date is terminated without any reminder to extend. This point show that the insurance habit is not exsit, people don’t understand all the benefit of insurance. We will connect to the car agency in order to supply car insurance to customer when they buy a new car. We have been processing this action from January 2015.
Car agency has already cooperated with many insurance company . How could you have any chance in this market?
We don’t simply ask the car agency to “sell UIC insurance” . We will make sure the car revenue of this agency grow up and they will never regret to cooperate with UIC. This is the different to others insurance company. Insurance company is the bridge between the buyer and the seller. For ex: when the customer extend their insurance contract, we will suggest them to ” buy a new car” or to ” take the car maintenance”, which will increase the sale revenue for car agency. We will let the agency know that “their sale revenue really grows up fast when they cooperate with UIC”.
Do you have any other market except car agency?
Yes, we will develop our channel by cooperating with some big distributor, not by opening a distributor channel by ourselves. For ex: With high level gym club ” you could earn your medical insurance if you are a gym member”. By this way, we give the benefit to gym club to attract more member to join in, this is another different in our business. By the way, we are looking for more customer to join in our insurance program. We want to create a long term relationship with our partner to receive more benefit together.
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