The number of life insurance policy that were sold by each financial
The quantity of life insurance policy that each people sold
Average premium for each policy (million VND)
Total premium that each people got (millionVND)
Mr Nghia (HLB’s financial consultants)
(30 years old, photocopy shop keeper) 5 4 20
Miss Huyen (HLB’s financial consultants) (36 years old, housewife) 3 6 18
Miss Huong (HLB’s financial consultant) 6 4.5 27
Mr Dung (PruB financial consultant) (62 years old, retired) 22 7.5 165
Mr Giang (Bao Viet Life Buon Ma
(35 Years Old, Construction advise and designer)
Mr Hue (Prudential consultant) (32 years old house holder) 19 6.5 123.5
(Source: Interview life insurance’s financial consultants in Buon Ma Thuot)
As we see in the above transcript 2.1, while financial consultant from other life insurance companies earned more than one hundred million VND for their companies in
2014, HLB’s financial consultants earned only less than 30 million VND for HLB.
In conclusion, HLB is experiencing significant challenges, such as business losses, a low share of premium turnover, and inadequate information transfer about their products Additionally, fewer customers are opting for life insurance policies from HLB, resulting in their financial consultants selling fewer policies and earning less premium compared to their counterparts in other companies To address these issues effectively, it is essential to identify the underlying key problem contributing to these unfavorable conditions.
A recent interview with the Board of Managers, a marketing lecturer from Tay Nguyen University, HLB’s financial consultants, and customers highlighted several potential issues affecting Dak Lak province's economy As a major coffee production hub, the province's economic stability is heavily reliant on coffee prices Unfortunately, from 2011 to 2015, a significant decline in coffee prices has posed challenges to the region's economic growth, as noted by financial consultant Ms Huong.
HLB reported that many customers are hesitant to purchase life insurance policies due to the recent decline in coffee prices, which has significantly impacted their income As a result, they are unable to allocate funds for saving towards life insurance products.
Figure 1.2: development of coffee price over the world
HBL faces significant challenges in a highly competitive environment, with 17 life insurance companies operating in Dak Lak Province Major players like Bao Viet Life, Prudential, Dai-ichi Life, and Manulife have established strong customer trust, making it difficult for HBL to maintain its market position.
A prevalent issue affecting HLB is the lack of customer understanding regarding life insurance For instance, Ms Binh from Phu Nhuan District in Ho Chi Minh City expressed her disdain for life insurance, perceiving it as largely fraudulent She believes that participating in life insurance often results in significant financial losses without providing adequate protection, leading her to dismiss the value of such policies.
A well-crafted marketing strategy is essential for boosting a company's profits, as emphasized by Ms Hiep, a marketing lecturer at Tay Nguyen University When customers trust a company's marketing approach, they are more likely to choose its products, ultimately driving sales and enhancing profitability.
Effective communication skills among financial consultants are crucial for enhancing customer understanding of life insurance products, enabling clients to select the most suitable policies, which ultimately boosts company revenue Mr Thieu Quang Manh, the sales department manager, emphasizes that these skills are essential for guiding customers in their insurance choices According to Vaughan and Vaughan (2008), insurance companies can be categorized into two types: life insurance companies, which offer life insurance, annuities, and pension products, and non-life or general insurance companies, which provide various other insurance types Additionally, Babbel (1985) notes that life insurance is often viewed as a “sold good” rather than a “bought good,” highlighting the importance of effective sales strategies in this sector.
Research indicates that financial consultants, as well as influences from the internet, family, colleagues, and friends, significantly impact customers' decisions when choosing life insurance products.
In 1993, it was found that 80% of insurance policies are typically sold by financial consultants, who serve as the primary point of contact for customers This highlights the crucial role of effective communication skills in building trust and influencing customers' decisions when selecting life insurance products.
The board of managers at HLB has identified several challenges impacting the business, including a decline in coffee prices, a tough economic climate, and intense competition These factors have negatively affected HLB's operations Additionally, our interviews revealed a concerning lack of customer awareness, as only one in seven customers demonstrated an understanding of these issues.
Life insurance plays a crucial role in securing the financial future of families, as highlighted by Ms Hoa's experience She emphasizes the importance of life insurance in ensuring her family's stability as she and her husband age or face potential risks, allowing them to maintain independence without relying on their children Many individuals are becoming increasingly aware of the significance of life insurance, particularly through advertising efforts by companies like Hanwha Life in Buon Ma Thuot, which are effectively reaching audiences via TV and YouTube Ms Hoa has taken proactive steps by acquiring two life insurance policies from Prudential Buon, underscoring the growing recognition of life insurance's benefits in protecting loved ones.
In Buon Ma Thuot, customers like Ms Hoa express concerns about Hanwha Life's financial consultants, citing poor communication and misunderstandings regarding life insurance While Ms Hoa seeks protection from life insurance, she feels pressured to purchase based on interest rates instead This highlights a significant issue with communication skills within Hanwha Life's team Despite these challenges, Mr Thieu Quang Manh emphasizes that since launching in 2009, the company has consistently researched target customers and enhanced its offerings with additional benefits to meet their needs Furthermore, Hanwha Life invests heavily in advertising across various media platforms to ensure that customers are well-informed about their services.
In summary, HLB faces three key challenges: declining coffee prices, a highly competitive market, and the communication skills of financial consultants While the first two issues are external factors beyond HLB's control, our research team has chosen to focus on improving the communication skills of financial consultants as a viable solution.
Effective communication skills are essential for financial consultants, as they play a crucial role in conveying and receiving information According to Skillyourneed (nd), the effectiveness of communication is determined by how well information is transferred and understood, highlighting the importance of strong communication abilities in this field.
Effective communication relies on the sender's and receiver's competencies, as highlighted by Hamid, Sara, and Rabia (nd) This process requires clear intentions and efforts from both parties, but it is prone to errors, such as message mix-ups or misinterpretations While miscommunication can be prevented, undetected errors can lead to significant confusion, wasted efforts, and missed opportunities.
Customers’ assessing about communication skill of PruB’s financial consultants
N Minim um Maxim um Mean Std
Financial consultants give full attention when they talk to you 50 4.00 7.00 5.6600 79821
Financial consultants keep eye contact throughout a conversation 50 4.00 7.00 5.7800 93219
Financial consultants treat you respectfully 50 4.00 7.00 5.7800 84007
Financial consultants ask the best questions to invite the best answers from you to understand your need 50 5.00 7.00 5.7600 71600
Financial consultants ask for clarification of whatever they don't fully understand about your need of life insurance
Financial consultants ask the best questions to invite the best answers from you to find your problem.
Financial consultants encourage you to talk about your problem in your life 50 4.00 7.00 5.7400 85261 Financial consultants display empathy and consult you with appropriated life insurance product 50 4.00 7.00 5.9000 78895
Financial consultants apologize to you and relate that they understand why you are upset about life insurance
Financial consultants discover what is in the best interest of you 50 4.00 7.00 5.5000 95298
Financial consultants deal optimally when you complain, criticize, blame and make excuses about life insurance product 50 4.00 7.00 5.6600 96065
N Minim um Maxim um Mean Std
Deviation Financial consultants give full attention when they talk to you 50 4.00 7.00 5.6600 79821
Financial consultants keep eye contact throughout a conversation 50 4.00 7.00 5.7800 93219
Financial consultants treat you respectfully 50 4.00 7.00 5.7800 84007
Financial consultants ask the best questions to invite the best answers from you to understand your need 50 5.00 7.00 5.7600 71600
Financial consultants ask for clarification of whatever they don't fully understand about your need of life insurance
Financial consultants ask the best questions to invite the best answers from you to find your problem.
Financial consultants encourage you to talk about your problem in your life 50 4.00 7.00 5.7400 85261 Financial consultants display empathy and consult you with appropriated life insurance product.
Financial consultants apologize to you and relate that they understand why you are upset about life insurance
Financial consultants discover what is in the best interest of you 50 4.00 7.00 5.5000 95298
Financial consultants deal optimally when you complain, criticize, blame and make excuses about life insurance product 50 4.00 7.00 5.6600 96065
(Source: Statistic from interviewing customers)
Customers’ assessing about communication skill of HLB’s financial consultants
Financial consultants give full attention when they talk to you 50 2.00 4.00 3.1429 89974
Financial consultants keep eye contact throughout a conversation 50 2.00 4.00 2.7143 75593
Financial consultants treat you respectfully 50 2.00 3.00 2.4286 53452 Financial consultants ask the best questions to invite the best answers from you to understand your need 50 2.00 4.00 2.8571 69007
Financial consultants ask for clarification of whatever they don't fully understand about your need of life insurance 50 2.00 4.00 3.0000 81650
Financial consultants ask the best questions to invite the best answers from you to find your problem 50 2.00 4.00 2.8571 89974
Financial consultants encourage you to talk about your problem in your life 50 2.00 5.00 3.1429 1.06904
Financial consultants display empathy and consult you with appropriated life insurance product 50 2.00 4.00 2.5714 78680
Financial consultants apologize to you and relate that they understand why you are upset about life insurance 50 2.00 4.00 2.8571 89974
Financial consultants discover what is in the best interest of you 50 2.00 4.00 2.7143 95119
Financial consultants deal optimally when you complain, criticize, blame and make excuses about life insurance product 50 2.00 5.00 3.7143 95119
(Source: Statistic from interviewing customers)
Interview financial consultants to identify the most important causes of the problem
What do you do to contact with your clients and how you convince them to buy life insurance contract?
Mr Nghia (HLB’s financial consultants)
(30 years old, photocopy shop keeper)
My clients, who are also my friends, neighbors, and relatives, benefit from my guidance in understanding the advantages of Hanwha Life products I demonstrate how investing in life insurance can be more profitable than traditional bank deposits, helping them make informed financial decisions.
Miss Huyen (HLB’s financial consultants)
I introduce my work with my relatives and they support me to buy life insurance contract.
Miss Huong (HLB’s financial consultant)
In discussions with my coworker about future investments, we explored the advantages of Hanwha Life's life insurance policy, particularly in comparison to traditional bank deposits We highlighted how HLB's life insurance offers unique benefits that can enhance financial security and provide long-term growth potential, making it a compelling choice for those planning for their financial future.
Mr Nam (HLB’s financial consultant)
As a financial consultant, I frequently engage with my neighbors to discuss the life insurance products offered by HLB I highlight the competitive interest rates of HLB compared to traditional banks, effectively persuading them to consider purchasing a life insurance policy for their financial security.
Mss Nguyet (HLB’s financial consultant)
I have a lot of close customers I tell them to support me with life insurance contract Of cause, I show the high interest of HLB product to convince them.
(Source: interview HBL’s financial consultants)
Interview financial consultants to identify the most important causes of the problem
How long have you worked for HLB?
How many life insurance policies did you sell last year (2014)?
How many kinds of life insurance policies are being provided at HLB?
Have you ever bought a life insurance policy at HLB?
Mr Nghia (HLB’s financial consultants)
(30 years old, photocopy shop keeper)
Miss Huyen (HLB’s Two years 3 6 No financial consultants)
Miss Huong (HLB’s financial consultant)
Mr Nam (HLB’s financial consultant)
(Source: Interview life insurance’s financial consultants in Buon Ma Thuot)
Interview financial consultants to identify the most important causes of the problem
Customers s What is the purpose of buying life insurance policy at HLB?
How HLB’s product compares to competitor’s product (such as, Prudential or Baoviet)?
What are the differences between buying life insurance policies and depositing in a bank?
Why customers who cancel the life policy before maturity day always get lost, even lost all the fee that they participated?
How will the customers get benefit if HBL goes bankrupt or does not do business in Vietnam?
Mr Nghia Buying life insurance at HLB you will get more money at maturity day.
Higher interest than other life insurance companies.
The interest of insurance is higher than of bank
Participating in life insurance involves a mutual agreement between you and the insurance company to invest together for higher returns However, if you choose to cancel the contract, you risk losing all your initial investment.
HLB cannot go bankrupt because this is a big company with the strong financial potential
Miss Huyen Investing to get more money
Higher interest than other life insurance companies.
Because of longer term than deposit in bank, signing an insurance policy you are protected longer.
Because the life insurance company takes your money to invest in other field to give you more money, so you have to wait for their investment mature.
HLB is a strong life insurance company in Korea so it cannot go bankrupt
Miss Huong Accumulating money for future
Higher interest than other life insurance companies.
Signing an insurance policy you will get more money than deposit in a bank at the
Investing in a life insurance company requires a commitment of your funds, similar to opening a retail shop Initially, this investment may not yield immediate returns.
Does HLB go bankrupt? This issue cannot occur maturity always going well, so if you get back your money you remain a little.
Mr Nam Investing with no risk
Higher interest than other life insurance companies.
The interest that you sent money to a bank is much lower than participate life insurance
You see the interest of life insurance is higher than deposit in a bank so they have to take your money to buy share, bond or invest
When you want to get money back earlier, they also have to sale share, bond earlier or cancel their investment and lost money.
HLB is a big company so it cannot go bankrupt
Saving money for future with high interest
Higher interest than other life insurance companies.
A lot of interest you will receive if you sign a life insurance policy.
Investing in life insurance can be risky, as you may lose your entire investment if you withdraw before the maturity date This is because entering a life insurance policy involves a mutual agreement between you and the insurance company to invest together for higher returns Therefore, withdrawing early could result in a total loss of your initial investment.
I believe HLB existing forever because it belong to one of the big ten conglomerates in Korea
(Source: Interview life insurance’s financial consultants in Buon Ma Thuot)
Interview customers to identify the most important causes of the problem
Please let us know what do HLB’s financial consultant do to contact with you and how they convince you to buy life insurance contract?
A friend of my daughter, who is a financial consultant for HLB, visited us and highlighted that HLB's interest rates are higher than those offered by traditional banks She convinced my husband and me to consider purchasing a life insurance contract with HLB.
A colleague of my wife introduced us to HLB’s life insurance products, encouraging us to support her by purchasing a policy and referring others for potential sales This situation feels reminiscent of a multi-level marketing scheme.
My neighbor, an HLB financial consultant, persuaded my parents to purchase a life insurance contract by highlighting the benefits of HLB's offerings.
My neighbor told that I travel a lot, so I should buy a life insurance contract, if I have an unfortunate incident and die I will get a lot of money
Mr Dong (34 years old, accountant)
My friend called me and convinced me to buy life insurance because she said that I will get more money at the end of life insurance term.
My friend told me that I should buy a life insurance contract because I will gain a lot of money for my future when my children go to university
My aunt work for this company but I do not know anything besides this is a life insurance company
PROBLEM IDENTIFICATION
Company background
Hanwha Group (Hanwha Life insurance, n.d) was founded in 1952, one of the top 10 conglomerates in Korea and top 500 in the world with 3 divisions:
Hanwha Group has expanded its business portfolio to include 142 affiliates, comprising 52 in Korea and 90 internationally Key subsidiaries include Hanwha Corp., Hanwha SolarOne, Hanwha Q.Cell, Hanwha Chemical, Hanwha Engineering & Construction, Hanwha Life Insurance, and Hanwha Hotel & Resorts The group operates in 19 countries, including Canada, China, Germany, India, Japan, the United States, and Vietnam, showcasing its global reach and diverse industry presence.
Established in 1946, Hanwha Life Insurance, formerly known as Korea Life Insurance, is the oldest life insurance company in South Korea With total assets amounting to 80 billion USD, it has become the country's leading life insurer and boasts an AAA solvency rating from reputable rating agencies.
Hanwha Life Vietnam, originally known as Korea Life Vietnam, received its establishment and operation license (No 51GP/KDBH) on June 12, 2008 In January 2013, the company underwent a rebranding and officially changed its name to Hanwha Life.
Vietnam is set to establish a distinctive brand identity for Hanwha Life Vietnam, a prominent life insurance provider with a charter capital of 1,891,140,000,000 VND, making it one of the highest-capitalized insurers in the country.
Since 1 Apr 2009, Hanwha Life Vietnam has introduced insurance products to Vietnamese customers Up to now, after 6 years of operation, Hanwha Life Vietnam has been honor granted Golden Dragon Award in 4 consecutive years 2010, 2011, 2012, 2013 for “Best financial services” This is prestige award granted by Vietnam Economic Times, VCCI and Ministry of Planning and Investment. Hanwha Life Vietnam is having nearly 250 staffs and nearly 18,000 Financial Consultants working in 45 offices on nationwide Currently, Hanwha Life Vietnam is being trusted by nearly 69,000 (until May 2015) customers and their families The company’s vision is through life insurance, to help Vietnamese plan the future and make their dreams come true.
In 2009, Hanwha Life expanded its presence in Vietnam by opening branch offices in Ho Chi Minh City, Buon Ma Thuot, and Ha Noi The Buon Ma Thuot branch is located at the 3rd floor of The Central Office Building, 1-3 No Trang Long Street, Buon Ma Thuot City, Dak Lak province, and it also includes two general agency offices situated in Eaka District and Buon Ho District.
The Buon Ma Thuot office offers six life insurance products tailored for the Dak Lak insurance market These include the Revamped Universal Life with a Guaranteed Insurability Option (AN KHANG TÀI LỘC), the Triple Care Critical Illnesses Endowment (AN KHANG PHÚC LỘC), and the Family Package (GÓI SẢN PHẨM AN KHANG TOÀN GIA) Additionally, they provide the Education Plan 2015 Endowment (HANWHA LIFE- AN TÂM HỌC VẤN) and an Endowment with Return option, catering to diverse insurance needs.
Annuity Income Benefits (AN KHANG BÁCH NIÊN TOÀN DIỆN) and Short Term Endowment (AN SINH TÍCH LŨY NGẮN HẠN).
Hanwa Life Insurance, a leading life insurance provider in Korea, has encountered challenges in its Buon Ma Thuot (BMT) operations after six years of business under the name HLB These issues have negatively impacted their overall performance.
Background of problem
The purpose of doing business is getting profit However, HBL had lost in consecutive four years recently from 2011 to 2014 with the large amount of money.
Table 1.1: Net loss/profit of HLB and PruB from 2011 to 2014
(Source: Annual report of HLB and Prudential Buon Ma Thuot)
HLB Prudential Buon HLB/PruB
Net loss/profit of HLB and PruB from 2011 to 2014
New exploiting premium The share of premium turnover
In 2011, HLB faced significant financial challenges, with losses exceeding six billion VND This trend continued in the following three years, with losses amounting to over five billion VND each year, highlighting the ongoing difficulties the company encountered in its business operations.
In addition, low share of premium turnover and share of new exploiting premium are existing not only in HLB but also in Hanwha Life Vietnam.
Figure 1.1: The share of premium turnover and new exploiting premium of Vietnamese insurance market
As regard to Vietnamese’s life insurance market in February 2015 in figure 2.1, only 2.1% premium turnover were received by two life insurance companies namely as
We can see the share of premium turnover a nd share of new exploiting premium of
Generali Life and Hanwha Life are two key players in the Vietnamese insurance market, with Hanwha Life reporting a notably low new exploiting premium of 9.24% compared to other life insurance companies As of September 2014, there were 17 life insurance companies operating in Vietnam, and this 9.24% figure reflects the performance of 10 of those companies, including Hanwha Life Similarly, the annual reports from the past four years indicate comparable results for HLB and Prudential Buon Ma Thuot (PruB).
Table 1.2: New exploiting premium and the quantity of new contract
1 New exploiting premium (billion VND)
2 The number of new life insurance contracts (contract)
(Source: Annual report of HLB and Prudential Buon Ma Thuot)
As we see in the table 2.2, all HLB’s norms were much less than PruB Specifically, HLB’s new exploiting premium and the number of new life insurance contracts from
2011 to 2014 were under 7% that compared to PruB.
Many customers feel that the benefits of life insurance products are not communicated effectively For instance, Mrs Hoa shared her experience with an HBL financial consultant who pressured her to purchase a life insurance policy by claiming that HBL's interest rates were superior to bank deposits However, Mrs Hoa understands that the primary purpose of life insurance is risk management, not investment returns Frustrated by the misleading information, she opted for Prudential instead, citing their consultants' clearer and more persuasive explanations In a survey of seven customers, six chose alternatives to Hanwha Life—three selected Prudential, two chose Bao Viet, and one preferred bank deposits, with only one person opting for Hanwha Life.
HLB's financial consultants experienced lower sales of life insurance policies and generated less premium compared to their counterparts at other life insurance companies, as evidenced by the data presented in transcript 2.1.
Transcript 1.1 The number of life insurance policy that were sold by each financial consultants in 2014
The quantity of life insurance policy that each people sold
Average premium for each policy (million VND)
Total premium that each people got (millionVND)
Mr Nghia (HLB’s financial consultants)
(30 years old, photocopy shop keeper) 5 4 20
Miss Huyen (HLB’s financial consultants) (36 years old, housewife) 3 6 18
Miss Huong (HLB’s financial consultant) 6 4.5 27
Mr Dung (PruB financial consultant) (62 years old, retired) 22 7.5 165
Mr Giang (Bao Viet Life Buon Ma
(35 Years Old, Construction advise and designer)
Mr Hue (Prudential consultant) (32 years old house holder) 19 6.5 123.5
(Source: Interview life insurance’s financial consultants in Buon Ma Thuot)
As we see in the above transcript 2.1, while financial consultant from other life insurance companies earned more than one hundred million VND for their companies in
2014, HLB’s financial consultants earned only less than 30 million VND for HLB.
In conclusion, HLB is experiencing significant challenges, including business losses, a low share of premium turnover, and inadequate communication regarding their products Additionally, fewer customers are opting for life insurance policies from HLB, resulting in their financial consultants selling fewer policies and earning less premium compared to those from competing companies To address these issues effectively, it is essential to identify the underlying problems contributing to these unfavorable conditions.
A recent interview with the Board of Managers, a marketing lecturer from Tay Nguyen University, HLB’s financial consultants, and customers highlighted several potential issues affecting the local economy Dak Lak province, known as a major coffee production hub, heavily relies on coffee prices for economic stability However, a decline in coffee prices from 2011 to 2015 has significantly hindered the province's economic growth, as noted by financial consultant Ms Huong.
HLB reported that many customers are hesitant to purchase life insurance policies due to a significant decrease in coffee prices, which has greatly impacted their income As a result, they find it challenging to set aside funds for life insurance products.
Figure 1.2: development of coffee price over the world
HBL faces significant challenges in a highly competitive market, with 17 life insurance companies operating in Dak Lak Province Major players like Bao Viet Life, Prudential, Dai-ichi Life, and Manulife dominate the sector, consistently earning customer trust and loyalty.
Many customers harbor negative perceptions about life insurance, often due to a lack of understanding For instance, Ms Binh from Phu Nhuan District in Ho Chi Minh City expressed her disdain for life insurance, believing that it is largely fraudulent She feels that participating in life insurance leads to significant financial losses with minimal protection, which contributes to her reluctance to engage with such products.
A well-crafted marketing strategy is essential for boosting a company's profitability, as highlighted by Ms Hiep, a marketing lecturer at Tay Nguyen University When a company effectively communicates its value proposition, it instills trust in customers, leading them to choose its products over competitors.
Effective communication skills among financial consultants are crucial for enhancing customer understanding of life insurance options, ultimately leading to increased company revenue, as noted by Mr Thieu Quang Manh, sales department manager The insurance industry is categorized into two main types: life insurance companies that offer life insurance, annuities, and pension products, and non-life or general insurance companies that provide various other insurance products (Vaughan and Vaughan, 2008) Babbel (1985) emphasizes that life insurance is primarily a "sold good," rather than a "bought good," highlighting the importance of skilled consultants in the sales process.
In 2013, it was demonstrated that financial consultants, the internet, family members, colleagues, and friends significantly influence customers in their selection of life insurance products Research by Crosby and Cowles (1986), Clow and Vorhies (1993), and Richard and Allaway further supports this assertion, highlighting the critical role of personal and professional networks in the decision-making process for insurance purchases.
In 1993, it was found that 80% of insurance policies are primarily sold by financial consultants, who serve as the sole point of contact for customers This highlights the critical importance of effective communication skills among financial consultants, as they play a vital role in building customer trust and influencing the decision to choose a life insurance product.
HLB is currently facing challenges due to a decline in coffee prices, which is impacting the economy and creating a highly competitive environment detrimental to its business Additionally, our interviews revealed that a significant lack of customer awareness exists, as only one out of seven customers demonstrated an understanding of these issues.
Life insurance plays a crucial role in securing financial stability for families, as it provides essential support during challenging times Many individuals, like Ms Hoa, recognize the significance of life insurance in ensuring that they do not become a burden on their children as they age or face risks Through advertising on platforms like TV and YouTube, awareness of reputable providers such as Hanwha Life Buon Ma Thuot has increased Ms Hoa currently holds two life insurance policies from Prudential Buon, highlighting her commitment to safeguarding her family's future.
Problem justification
Effective communication skills are crucial for financial consultants, as they play a key role in transferring information clearly and efficiently According to Skillyourneed, the effectiveness of communication is determined by how well information is conveyed and understood.
Effective communication relies on the sender's and receiver's competencies, as highlighted by Hamid, Sara, and Rabia (nd) It is a purposeful process that requires effort from both parties, yet it is susceptible to errors, such as message mix-ups or misinterpretations While miscommunication can often be avoided, undetected errors can lead to significant confusion, wasted efforts, and missed opportunities.
Effective communication involves a combination of essential skills, such as nonverbal communication, active listening, stress management, assertive expression, and emotional awareness Understanding both one's own emotions and those of the other person enhances the quality of interactions.
Effective communication is a crucial skill for financial planners, as highlighted by Maria (nd) They must articulate information clearly, both verbally and in writing, and simplify complex topics for clients who may lack financial knowledge While developing financial plans, consultants handle sensitive personal information, requiring them to demonstrate tact, sensitivity, and trustworthiness Additionally, strong marketing and sales skills are beneficial, as they are also tasked with promoting financial products to their clients.
1.3.2.Justify the existence of the central problem
To assess the communication skills of financial consultants, we utilized questionnaires developed by Roemary and Ravipreet (1997), Megumi, Katsutoshi, and Hitoshi (2006), and Pierrette (1999) The survey comprised 11 multiple-choice questions rated on a seven-point scale, ranging from 1 (strongly disagree) to 7 (strongly agree) This approach enabled a comparative analysis of communication skills between HLB’s financial consultants and those from PruB Detailed questionnaires and interview questions can be found in the supporting information, specifically in section 4.3.
A survey of 50 questionnaires revealed that HLB's financial consultants scored an average of 2.4 to 3.7, significantly lower than PruB's consultants, who scored between 5.5 and 5.9 This discrepancy highlights the poor communication skills of HLB's financial consultants, as many customers expressed dissatisfaction due to frequent interruptions and the transmission of incorrect information regarding life insurance products.
Mr Canh expressed dissatisfaction with HLB’s financial consultants, stating that they focused on promoting high-interest life insurance policies without understanding his family's needs for protection He ultimately chose to purchase life insurance from Bao Viet, where he felt the consultant offered a product that adequately safeguarded his family against potential loss of income He questioned why HLB, if offering superior interest rates, does not operate as a bank Interviews with HLB’s financial consultants revealed a similar sentiment, as Miss Huong acknowledged her close relationships with clients but indicated a belief that the products offered aligned with customer needs This feedback highlights a significant issue within HLB: the financial consultants' lack of effective communication skills with their clients.
1.3.3.Justify the importance of the problem
Marketing communications play a crucial role in the marketing mix, particularly in the promotion aspect, which is vital for life insurance companies Due to the complex nature of life insurance products, financial consultants are employed to effectively communicate these offerings to customers Mr Cuong, a member of HLB's board, emphasizes that skilled salespeople are essential for explaining intricate policy terms clearly Research by Owen (1997) indicates that a salesperson's communication skills significantly influence customers' buying decisions, leading to improved returns and profits for the company As salespeople enhance their communication abilities, they not only boost sales but also foster stronger connections with potential clients (John, 2014).
Effective communication skills are essential for financial consultants in a life insurance company, as they significantly influence customer buying decisions, boost individual sales performance, enhance overall sales volume, increase company profits, and foster better relationships with prospects.
Potential causes of the problem
A comprehensive review of literature, along with insights from financial consultants and customers, reveals that various factors contribute to the issue at hand These factors can be broadly classified into two categories: external factors and internal factors.
In 2013, the Hanwha Group rebranded Korea Life Insurance to Hanwha Life, creating challenges for financial consultants in effectively communicating the name to customers Additionally, customer sentiment plays a significant role, as many individuals harbor negative perceptions of life insurance, leading them to avoid discussions with salespeople In interviews with seven customers, one individual opted for a bank deposit rather than purchasing life insurance, highlighting the impact of these external factors on consumer choices.
Inefficient communication among HLB's financial consultants stems from various internal factors Understanding the product is crucial for effective selling, particularly in life insurance, where the nuances of policies differ significantly from traditional banking deposits Consultants must grasp not only the interest aspects but also the comprehensive benefits of life insurance, such as risk coverage, savings targets, and investment goals A robust training program is essential to enhance salespeople's understanding of policy clauses and customer benefits Additionally, strong listening skills are vital for identifying customer needs and recommending suitable life insurance products By addressing clients' financial concerns—like retirement, childcare costs, and inheritance—consultants can improve their success rates and increase contract sales Research highlights the importance of attributes such as empathy, confidence, and preparation in successful sales performance, with personal factors, skills, and motivation playing key roles.
Changing the name from Korea Life insurance to Hanwha Life in 2013 makes financial consultants difficult to read the name and explain it to the customer
Understanding the product is essential for sales success, as highlighted by Mayer and Greenberg (1964), who emphasize the importance of ego drive—a strong personal motivation to close deals Additionally, personal factors such as abnormal psychology and individual experience play a significant role in sales effectiveness, as noted by Churchill et al (1985) Furthermore, effective listening skills are crucial in the sales process, as supported by various sources including Brian Tracy and Swan et al (1984).
Understanding customers’ needs (Swan et al., 1984).
Figure 1.3: Cause - and - effect map
- Low amount of customers and premium that HLB gain three year recently
Communication skills of HLB’s financial consultants
Each HLB’s financial consultants sold less life insurance policies & got less premium than the
Based on interviews with HLB members and customers, a cause-and-effect map has been created to identify the factors influencing the communication skills of HLB financial consultants.
HLB cannot control the external causes, so we will study more about internal factors to give solution for solving problem.
Causes validation
Based on the probable causes identified in the Cause-and-Effect map and research questionnaires (Pierrette, 1999; Optimal Thinking, n.d.; Knowing Your Products, n.d.), we developed two questionnaires (Questionnaire 4.4 & 4.5) to investigate the primary internal factors contributing to the inefficiency in communication skills among HLB's financial consultants The focus is exclusively on internal factors, as external influences are beyond the company's control, and we have chosen to exclude considerations of ego-driven behavior and abnormal psychology in our assessment of communication skills.
Our research involved in-depth interviews with five experienced financial consultants from HBL, revealing that while all participants had over two years of experience, this did not correlate with effective communication skills Key issues identified included inadequate listening skills, a lack of understanding of customer needs, and insufficient knowledge of life insurance products Although HLB’s consultants actively promote life insurance to their close acquaintances—such as neighbors, relatives, and coworkers—they often fail to tailor their approach based on individual customer requirements, leading to inefficiencies in communication.
HLB’s financial consultants face significant challenges in communication skills due to inadequate product knowledge, particularly regarding life insurance Interviews reveal that most consultants lack a clear understanding of HLB’s offerings, with only two out of five having purchased HLB policies themselves While they assert that HLB’s products offer higher interest rates than competitors, they misunderstand the primary purpose of life insurance, believing it is solely about interest Furthermore, they provide incorrect information regarding the consequences of policy cancellation before maturity and fail to adequately address concerns about the company's potential bankruptcy Despite their confidence in HLB's stability, historical examples, such as the short-lived Bao Minh CMG joint venture, highlight the risks associated with assuming a company cannot fail.
A recent survey of seven customers revealed insights consistent with feedback from HLB’s financial consultants One customer, Mr Dong, highlighted the numerous advantages of life insurance, including income protection during risks and savings for future education or retirement plans However, he noted that HLB’s financial consultants provided misleading information by focusing solely on the high interest of the product, neglecting the broader benefits of life insurance.
Customers expressed skepticism about HLB's financial stability, fearing bankruptcy and significant losses if they surrender their life insurance policies before maturity Some financial consultants and clients inaccurately likened life insurance to gambling or lottery games, undermining the true purpose and value of life insurance.
Our research with HLB financial consultants revealed that many customers have a limited understanding of insurance products Mr Thieu Quang Manh emphasized that insurance serves as a vital service for managing life risks, contrasting it with gambling, as customers prefer safety over potential financial gain Life insurance premiums include a risk premium, and the contributions made by policyholders are significantly lower than the benefits paid out during claims, adhering to the law of large numbers In non-life insurance, customers pay for a year without receiving anything if no claims occur, with their contributions supporting those who do face risks For life insurance, if a policyholder encounters a risk during the coverage period, they receive full benefits without additional payments, while those who do not claim during the policy term typically receive no payout, although companies may offer a small return to encourage continued contributions If a policyholder lapses before maturity, their funds are allocated to cover claims for others, resulting in only a cash surrender value being returned, which reflects the premium after deducting risk and management fees Concerns regarding the bankruptcy of life insurance companies were also noted by Mr Phung Khac Loc.
20 secretary-general of Vietnam Insurance Association in the interview of baohiem.ifo
In 2014, it was emphasized that customer rights are always protected, which is a fundamental principle of insurance Although Bao Minh CMG is no longer operational, the rights of its customers remain fully safeguarded by Diichi Life.
During a discussion with Mr Nguyen Dinh Nam, Director of Hanwha Life Buon Ma Thuot, we shared insights from financial consultants and customers He expressed surprise at the evident lack of product knowledge and listening skills among the consultants, highlighting their failure to focus on customer solutions and empathy Grateful for our findings, he committed to collaborating with the management board at HLB to address these issues promptly.
In conclusion, the communication challenges faced by financial consultants at HLB can be addressed by identifying the root causes, which include a lack of product knowledge and insufficient listening skills Enhancing their ability to understand customer needs, focus on tailored solutions, and demonstrate empathy will significantly improve client interactions.
ALTERNATIVE SOLUTION ANALYSIS
Alternative Solutions
After a thorough analysis, we identified that the primary issue with HLB's financial consultants lies in their communication skills, particularly in listening, understanding customer needs, and knowledge of life insurance products Based on solutions proposed by Mark (nd) and Adam (2014), and discussions with our supervisor Mr Nguyen Dinh Nam, we recommend three alternative strategies to enhance the communication skills of HLB's financial consultants: implementing targeted training programs, fostering teamwork, and considering dismissal and recruitment processes.
HLB, situated near Tay Nguyen University, benefits from skilled listening and customer understanding, thanks to training provided by the university's short-term department To enhance our financial consulting team, HLB will collaborate with Mr Nguyen Ngoc Thang, the director of the short-term training department, to develop an effective training program.
To address the issue of inadequate product knowledge, HLB's management will implement specialized training programs As noted by Tara Duggan, product knowledge training equips the sales team with essential information about product features and benefits Additionally, role-playing techniques will be utilized to enhance the training process for sales personnel.
Features & benefit According to Nguyen Dinh Nam, HLB’s products consist of following features & benefits besides interest.
1) Cancelled premium Ignore the premium of a life insurance policy if the customers get seriously ill or disabled, so the benefit of this feature helps customers diminish the worry of money in the risk situation For example, when a client participates a life insurance policy with 100 million in 10 years but he gets a severe car accident in the first two years, he does not have to pay any money for the last eight years with fully right at the maturity.
2) Warranty pay options Paying money at a time in the future or life events such as getting married, entering university or retire time.
3) Cash value plans Paying out upon customers’ death and also accumulates value during your lifetime The customers can use the cash value as a tax-sheltered investment, as a fund from which they can borrow and use to pay the policy premiums later.
4) Cash withdrawals and loans Allowing customers to withdraw or borrow money, using the cash value of the policy as collateral Interest rates tend to be relatively low They can also use the cash value of their life policy to pay your premiums if they need or want to stop paying premiums for a period of time The customers must pay back the loan or their beneficiaries will receive a reduced death benefit.
Product knowledge training encompasses essential terminology, definitions, and illustrative examples that clarify key concepts Utilizing multimedia elements like graphics, audio, and video enhances participants' understanding by providing comprehensive details about the product.
Portfolio training equips sales and support personnel with essential sales insights, an overview of the market, and an understanding of the competitive landscape This knowledge enables sales teams to effectively present solutions that address customer challenges, while support staff can leverage the information to resolve inquiries and troubleshoot issues efficiently.
Role play training for financial consultants is an effective method to enhance their product knowledge by simulating real-world customer interactions By encouraging consultants to engage with their peers as customers, this approach fosters practical learning and boosts confidence in applying their expertise This hands-on training not only reinforces their understanding but also prepares them for actual client scenarios, ultimately improving their performance in the field.
According to Useem (2006), enhancing collaboration skills is crucial for increasing your value, regardless of authority level At HLB, teamwork among financial consultants fosters knowledge sharing and improvement A key strategy in building effective sales teams involves pairing an experienced consultant with one or two newcomers This approach allows new consultants to learn from their seasoned counterparts, thereby enhancing their product knowledge and communication skills essential for successful sales.
Our proposed solution focuses on the dismissal and recruitment of financial consultants at HLB The company will set performance targets for existing consultants, and those who fail to meet their targets three times will be terminated Concurrently, HLB will initiate a recruitment drive to attract new financial consultants, providing them with comprehensive training to develop their sales skills This strategy aims to enhance the overall performance of HLB's financial advisory team.
Solution comparison
According to the textbook “problem solving in organization” of Joan, Hans and Hans
In 2012, solution justification is crucial as it outlines how a proposed solution effectively addresses a specific problem Researchers must also conduct a cost-benefit analysis to evaluate whether a solution, despite its potential effectiveness, may be too costly to implement.
Following discussions with board members Mr Nguyen Dinh Nam, HLB Director, and Mr Thieu Quang Manh, Sales Manager, we developed questionnaire 4.6 to assess potential strategies After conducting interviews and analyzing the cost-benefit internal report, we identified two detailed evaluations with specific criteria aimed at determining the optimal solution for improving communication skills at Hanwha Life Buon.
Training Teamwork Dismissal and recruitment
Functional requirements - Giving financial consultants with academic knowledge
- Knowing the way to explain customers about benefit and feature of life insurance policy, enhancing the capacity to convince customers.
- Increase quality of customers who will chose HLB to buy life insurance policy
- Giving financial consultants with the practical knowledge
- Improving the approach with customers to enhance the brand awareness of HLB
- Increase the opportunity to sale life insurance policy to enhance premium turnover and new exploiting premium
- Replacing the new financial consultants force for the company
- Making the first training for the new ones
- Hoping a new force with the better communication skill than the old ones.
HLB recognizes the need to enhance the skills of its financial consultants, particularly in areas such as product knowledge, listening skills, and customer understanding To address this gap, HLB will collaborate with the short-term department of Tay Nguyen University to conduct training sessions focused on improving these essential skills Additionally, HLB is committed to appointing a CEO who possesses a comprehensive understanding of life insurance and the necessary training knowledge to effectively guide their financial consultants.
- All the trainees have to participate full time of the course training. one team has at least one experience financial consultant for the others learning from him.
Team collaboration is essential for identifying new customers and qualifying candidates for the financial consultant role It is crucial that new applicants possess a strong background in finance, with a particular emphasis on insurance knowledge.
- The training fee and time may costly.
- If the financial consultants absent himself from the one or more training day, he will not get full knowledge.
- Each person in a team will rely on others, which lead to inefficient in improving knowledge of product.
- High cost For Recruiting And Training New Financial
- This solution also takes time for training
The dismissal of older financial consultants may incur costs related to compensation and gifts HLB faces design restrictions that could extend the solution process to four and a half months due to its workforce of 320 financial consultants spread across three locations: Buon Ma Thuot city, Buon Ho District, and Eakar District Training in product knowledge will be conducted over three areas, requiring one month for each consultant, with an additional two weeks allocated in Tay.
- In one month, HLB conducts a combination to being the teams of financial consultants, then testing the efficiency every three months.
Implementing this solution requires a six-month period to transition from old financial consultants to newly recruited and trained professionals By taking cues from PruB, we can establish monthly performance targets for each financial consultant If they fail to meet these targets for three consecutive months, appropriate actions will be taken to ensure the effectiveness of the team.
Nguyen University emphasizes the importance of listening skills and understanding customer needs, focusing on providing effective solutions and empathy The preparation period for product knowledge spans one month Following this, there will be a recruitment announcement for new candidates, who will receive training in three key areas.
(Source: discussing with board managers)
Table 2.2 Cost and benefit of three alternative solutions
Dismissal and Recruitment (million VND)
1 Net loss after tax in
3 Estimate increase new exploiting premium 150%x(2)=6,900 125%x(2)=5,750 140%x(2)=6,440
Estimated increases net profit after the solution implementation
5 Costs of the solution implementation (94.25) (129.38) (139.1)
5.1 Cost of training product’s knowledge
100 VND for one hour in three month with 5 hours per teaching day)
Cost of training listening skill, understanding customers and empathy
Dismissal and Recruitment (million VND) costs
The projected increases in net profit and costs following the implementation of the solution are derived from comprehensive interviews with the Board managers of HLB, as well as insights from the annual report.
Dismissal and recruitment of financial consultants involve significant costs in both time and money, particularly when it comes to training new hires and compensating existing employees While implementing a training strategy requires investment, it is generally more cost-effective than the expenses associated with hiring and firing Additionally, fostering teamwork can enhance efficiency, as all team members work collaboratively towards achieving common goals.
Select the best solution
After evaluating the three strategies, we determined that training is the most effective solution for addressing communication skill issues at Hanwha Life Buon Ma Thuot This approach requires less time and financial investment while delivering greater efficiency compared to other options According to Table 2.2, both the management board and our research team anticipate that training will be implemented in the first month.
In 2016, HLB faced a four and a half month timeline to implement a new training solution, which was projected to increase their new exploiting premium by 150% compared to 2014 In contrast, two alternative solutions only raised the premium by 125% and 140% Despite these efforts, HLB continued to incur losses, with training resulting in a loss of 4.795 million VND, while teamwork led to a loss of 5.003 million VND, and the dismissal and recruitment strategy resulted in a loss of 4.909 million VND Training is essential for HLB, as it allows new financial consultants to acquire practical knowledge from their peers Therefore, our group recommends that HLB adopt a strategy focused on training and teamwork in the short term, while considering dismissal and recruitment in the long term.
ACTION PLAN
Business goals
Mr Nguyen Dinh Nam stated that both HLB and Hanwha Life Vietnam aim to achieve break-even quickly and aspire to rank among the top five life insurance companies in Vietnam by 2020.
Objectives
- 100% financial consultants are improved sale skill and understand clearly about HLB’s product.
- Each financial consultant will sell six life insurance policies in average.
Cost and benefit of three alternative solutions
The details of cost and benefit were showed on the table 2.1 at “select the best solution” chapter above.
Detailed implementation plan
We have three alternative solutions need to execute.
Training listening skill, understanding customers, empathy
Short – term training department of Tay Nguyen University
Prepare document for training knowledge of product
Board of managers One month
Training knowledge of product Board of managers Three months at
Buon Ma Thuot, Eakar and Buon Ho
Gathering all financial consultants at three areas to make groups of two or three people, providing targets for each group.
Board of managers One month
Testing the groups with the targets that were gave before, then giving new targets for each group
Board of managers Each three month after setting the target
After completing the training program, it is essential for the Board of Managers to establish clear targets for each financial consultant If any financial consultant fails to meet these targets within three months, they will be let go Subsequently, an announcement will be made to recruit new financial consultants, who will then undergo training to ensure they are equipped for success.
Board of managers After three months setting targets
(The authors making plan together with board of managers)
SUPPORTING INFORMATION
QUESTIONNAIRES Questionnaire 4.1 Interview financial consultants of life insurances companies to find out symptoms
3 What is your main job?
4 What life insurance company that you are working for as a financial consultant?
5 How long have you worked for the company?
6 Do you have difficulties when the company changed its name from Korea Life to Hanwha Life? Name your difficulties.
7 How many life insurance policies that you sell last year (2014)?
8 What do you do to contact with your clients and how you convince them to buy life insurance contract?
Thank you very much for your contribution!
Questionnaire 4.2 Interview life insurance customers to find out possible problems
1 Do you think that life insurance is necessary for your life? Why?
2 Do you care about life insurance? Why?
3 Do you know about Hanwha Life Buon Ma Thuot? i Yes ii No
4 Do you know about Korea Life Buon Ma Thuot? i Yes ii No
5 Korea life has changed their name to Hanwha Life, do you know that? i Yes ii No
6 Which following company that you bought life insurance product? a) Baoviet life b) Prudential c) Hanwha life d) Other company (name it) ……… e) I have not bought any life insurance policy.
7 What do you think when you have just heard Hanwha Life?
8 Besides Hanwha Life financial consultant whose other following companies met you? a) Prudential b) Baoviet c) Daiichi d) Financial consultants from other company:……….
9 If you buy a life insurance product, which life insurance company that you will chose? Why?
Thank you very much for your contribution!
Questionnaire 4.3: interview customers to identify the existing of problem
1 Please answer following questions about by cycle the appropriated answer about
HLB’s financial consultants and PruB’s financial consultants (with 1 for totally disagree,
2 for dis agree, 3 – slightly agree, 4 – neutral, 5 – slightly agree, 6 agree, 7 totally agree)
1 HLB’s financial consultants give full attention when they talk to you.
2 HLB’s financial consultants keep eye contact throughout a conversation
3 HLB’s financial consultants treat you respectfully 1 2 3 4 5 6 7 1 2 3 4 5 6 7
4 HLB’s financial consultants ask the best questions to invite the best answers from you to understand your
5 HLB’s financial consultants ask for clarification of whatever they don't fully understand about your need of life insurance
6 HLB’s financial consultants ask the best questions to invite the best answers from you to find your problem.
7 HLB’s financial consultants encourage you to talk about your problem in your life
8 HLB’s financial consultants display empathy and consult you with appropriated life insurance product.
9 HLB’s financial consultants apologize to you and relate that they understand why you are upset about life insurance
10 HLB’s financial consultants discover what is in the best interest of you.
11 HLB’s financial consultants deal optimally when you complain, criticize, blame and make excuses about life insurance product
Thank you for your contribution!
Questionnaire 4.4: Interview financial consultants of HBL to identify main causes of problem
3 What is your main job?
4 How long have you worked for the company?
5 How many life insurance policies did you sell last year (2014)?
HLB offers a diverse range of life insurance products, catering to various needs and preferences Customers can choose from multiple types of life insurance policies designed to provide financial security and peace of mind Purchasing a life insurance policy from HLB serves the purpose of safeguarding loved ones and ensuring financial stability in unforeseen circumstances When compared to competitors like Prudential, HLB's life insurance offerings stand out due to their competitive features and customer-centric approach, making them a reliable choice for individuals seeking comprehensive coverage.
When considering life insurance policies versus bank deposits, it's essential to understand the key differences in terms of benefits and risks Customers who cancel their life insurance policies before maturity often face significant losses, including the potential forfeiture of all premiums paid Additionally, in the event that the insurance provider, such as HBL, goes bankrupt or ceases operations in Vietnam, customers may be left without coverage or financial recourse Understanding these factors is crucial for making informed financial decisions.
7 What do you do to contact with your clients and how you convince them to buy life insurance contract?
Thank you for your contribution!
Questionnaire 4.5: interview customers to identify main causes of problem
HBL’s financial consultants engage in informative discussions about their life insurance products, highlighting the various types of policies available to meet diverse needs The primary purpose of purchasing a life insurance policy from HBL is to ensure financial security for loved ones and provide peace of mind When comparing HBL’s life insurance offerings to competitors like Prudential, customers will find unique benefits and competitive features that set HBL apart in the market.
When considering life insurance policies versus bank deposits, it's essential to understand the key differences Customers who cancel their life insurance policies before maturity often face significant losses, including the forfeiture of all premiums paid In the event that HLB goes bankrupt or ceases operations in Vietnam, customers may still have access to certain benefits, highlighting the importance of understanding the terms and conditions of their policies.
2 Please let us know what do HLB’s financial consultant do to contact with you and how they convince you to buy life insurance contract?
Thank you for your contribution!
Questionnaire 4.6: Interview board managers to select the best solution for the problem and detailed implementation plan
Effective communication skills among financial consultants are currently a significant challenge for your company, primarily due to insufficient product knowledge Implementing targeted training programs can enhance their understanding of products, leading to improved communication After training, communication skills can be further enhanced through ongoing practice, feedback, and mentorship While training offers advantages such as increased employee confidence and customer satisfaction, it may also present disadvantages like initial costs and time investment HLB can implement this solution by developing a structured training curriculum and allocating resources for its execution The costs associated with training should be weighed against both dollar benefits, such as increased sales and customer retention, and non-dollar values, including improved employee morale and brand reputation Potential constraints for HLB may include budget limitations, time constraints for employees, and the need for ongoing support to ensure the sustainability of the training outcomes.
HLB should prioritize teamwork among its financial consultants to enhance product knowledge and improve communication skills post-solution implementation While the advantages of teamwork include increased collaboration and shared expertise, potential disadvantages may involve conflicts and varying commitment levels To implement this solution effectively, HLB can invest in team-building activities and training programs, with costs varying based on the scope of the initiatives The benefits, both in monetary terms and non-monetary values such as improved employee morale and customer satisfaction, can significantly outweigh the expenses However, HLB must consider potential constraints such as resource allocation and employee availability when executing this strategy.
HLB can improve communication skills among its financial consultants by dismissing outdated staff and recruiting new talent This approach can enhance overall team dynamics and client interactions While the advantages include fresh perspectives and improved skills, disadvantages may involve the costs of recruitment and potential disruption during the transition To implement this solution effectively, HLB should conduct a thorough assessment of current staff capabilities, develop a targeted recruitment strategy, and allocate a budget for hiring and training The investment may yield significant benefits, both in terms of increased revenue through better client relationships and enhanced employee morale However, HLB may face constraints such as budget limitations and the challenge of integrating new employees into the existing corporate culture.
4 Now, would we make the detail plan for each solution together?
Thank you for your contribution!
SECONDARY DATA Product of Hanwha Life
Revamped universal life with guaranteed insurability option (AN KHANG TÀI
Life is an unpredictable journey filled with challenges, but staying steadfast is essential to achieving your goals Hanwha Life's revamped universal life insurance with a guaranteed insurability option provides a reliable financial foundation, offering peace of mind against life's uncertainties while enabling you to realize your short, medium, and long-term plans.
The Triple Care Critical Illnesses Endowment (AN KHANG PHÚC LỘC) emphasizes that health is life's most valuable gift With advancements in science, early detection and treatment of critical illnesses have become more accessible through three essential health care approaches However, the rising accident rates, with a significant percentage leading to death or permanent disability, highlight the urgent need for financial preparedness The accompanying financial strain and emotional distress can be overwhelming, making it crucial to not only prioritize health but also to establish a robust financial backup plan for life's uncertainties.
Understanding the customer’s concerns, Hanwha Life Vietnam introduce the solution
“An KhangPhucLoc” which help the customers to fully enjoy their lives in peace”
3 Family Package (GÓI SẢN PHẨM AN KHANG TOÀN GIA): “With the desire to bring the products to meet all the needs of protection for customers, Hanwha Life
Vietnam is continually innovating and adapting its products to meet the diverse needs at various life stages, ensuring optimal support and protection for customers and their families Hanwha Life Vietnam proudly presents the Family Package, which offers comprehensive solutions for personal needs, including housing, wedding planning, children's education abroad, and health protection for parents.
The Hanwha Life Education Plan 2015 Endowment offers parents a comprehensive financial strategy to ensure their children's educational success and future prosperity By investing in this plan, parents can provide a solid foundation for their children to pursue their dreams, regardless of any challenges that may arise With Hanwha Life, you can secure a brighter educational future for your children, allowing you to take pride in their growth and achievements.
5.Endowment with annuity income benefits (AN KHANG BÁCH NIÊN TOÀN
After dedicating a significant portion of life to their careers, many individuals eagerly anticipate a relaxing retirement However, the demands of modern life often hinder proper retirement planning Recognizing this need, Hanwha Life has introduced the Endowment with Annuity Income Benefits, a financial solution designed to help you achieve a comfortable and prosperous retirement This plan allows you to customize your retirement strategy, ensuring your dreams of a wealthy and leisurely lifestyle become a reality.
Short Term Endowment (AN SINH TÍCH LŨY NGẮN HẠN) focuses on achieving your financial goals within the next 6 to 10 years, such as purchasing a car, buying a cozy apartment, planning a memorable wedding, or taking an overseas family trip While your current health and financial situation may suggest that these targets are easily attainable, unforeseen circumstances can impact your ability to reach them.
40 targets and intentions to go down Hanwha Life’s honored to present the Short-term endowment – a fool-proof plan for 6-to-10-year plans”
TRANSCRIPTS Transcript 4.1: Customers’ assessing about communication skill of PruB’s financial consultants
N Minim um Maxim um Mean Std
Financial consultants give full attention when they talk to you 50 4.00 7.00 5.6600 79821
Financial consultants keep eye contact throughout a conversation 50 4.00 7.00 5.7800 93219
Financial consultants treat you respectfully 50 4.00 7.00 5.7800 84007
Financial consultants ask the best questions to invite the best answers from you to understand your need 50 5.00 7.00 5.7600 71600
Financial consultants ask for clarification of whatever they don't fully understand about your need of life insurance
Financial consultants ask the best questions to invite the best answers from you to find your problem.
Financial consultants encourage you to talk about your problem in your life 50 4.00 7.00 5.7400 85261 Financial consultants display empathy and consult you with appropriated life insurance product 50 4.00 7.00 5.9000 78895
Financial consultants apologize to you and relate that they understand why you are upset about life insurance
Financial consultants discover what is in the best interest of you 50 4.00 7.00 5.5000 95298
Financial consultants deal optimally when you complain, criticize, blame and make excuses about life insurance product 50 4.00 7.00 5.6600 96065
N Minim um Maxim um Mean Std
Deviation Financial consultants give full attention when they talk to you 50 4.00 7.00 5.6600 79821
Financial consultants keep eye contact throughout a conversation 50 4.00 7.00 5.7800 93219
Financial consultants treat you respectfully 50 4.00 7.00 5.7800 84007
Financial consultants ask the best questions to invite the best answers from you to understand your need 50 5.00 7.00 5.7600 71600
Financial consultants ask for clarification of whatever they don't fully understand about your need of life insurance
Financial consultants ask the best questions to invite the best answers from you to find your problem.
Financial consultants encourage you to talk about your problem in your life 50 4.00 7.00 5.7400 85261 Financial consultants display empathy and consult you with appropriated life insurance product.
Financial consultants apologize to you and relate that they understand why you are upset about life insurance
Financial consultants discover what is in the best interest of you 50 4.00 7.00 5.5000 95298
Financial consultants deal optimally when you complain, criticize, blame and make excuses about life insurance product 50 4.00 7.00 5.6600 96065
(Source: Statistic from interviewing customers)
Transcript 4.2 Customers’ assessing about communication skill of HLB’s financial consultants
Financial consultants give full attention when they talk to you 50 2.00 4.00 3.1429 89974
Financial consultants keep eye contact throughout a conversation 50 2.00 4.00 2.7143 75593
Financial consultants treat you respectfully 50 2.00 3.00 2.4286 53452 Financial consultants ask the best questions to invite the best answers from you to understand your need 50 2.00 4.00 2.8571 69007
Financial consultants ask for clarification of whatever they don't fully understand about your need of life insurance 50 2.00 4.00 3.0000 81650
Financial consultants ask the best questions to invite the best answers from you to find your problem 50 2.00 4.00 2.8571 89974
Financial consultants encourage you to talk about your problem in your life 50 2.00 5.00 3.1429 1.06904
Financial consultants display empathy and consult you with appropriated life insurance product 50 2.00 4.00 2.5714 78680
Financial consultants apologize to you and relate that they understand why you are upset about life insurance 50 2.00 4.00 2.8571 89974
Financial consultants discover what is in the best interest of you 50 2.00 4.00 2.7143 95119
Financial consultants deal optimally when you complain, criticize, blame and make excuses about life insurance product 50 2.00 5.00 3.7143 95119
(Source: Statistic from interviewing customers)
Transcript 4.3a: Interview financial consultants to identify the most important causes of the problem
What do you do to contact with your clients and how you convince them to buy life insurance contract?
Mr Nghia (HLB’s financial consultants)
(30 years old, photocopy shop keeper)
My clients are not just customers; they are friends, neighbors, and family I engage with them personally to highlight the benefits of Hanwha Life products, demonstrating how investing in life insurance can be more advantageous than traditional bank deposits.
Miss Huyen (HLB’s financial consultants)
I introduce my work with my relatives and they support me to buy life insurance contract.
Miss Huong (HLB’s financial consultant)
In discussions with my coworker regarding future financial security, we explored the advantages of investing in Hanwha Life, particularly focusing on HLB's life insurance policy Compared to traditional bank deposits, HLB's life insurance offers unique benefits that enhance long-term investment growth and provide essential protection for loved ones.
Mr Nam (HLB’s financial consultant)