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CHAPTER 1: INTRODUCTION OF THE STUDY
1.1.
Rationale
Life Insurance has a profound humanistic meaning. It not only helps
individuals and families protect their children and family members from
financial loss due to the loss of loved ones, but also hepls people to save
money for their future financial needs. In addition, for the socio-economy,
life Insurance contributes to mobilize a large capital sources for the
investment of the economics development. It also contributes to enhance the
awareness of thrift practice, live with the responsibilities to ourself, our
family and our community.
Life insurance agencies help to increase the value of insurance products
as well as bring revenue, reputation and customer confidence in the life
insurance companies. Moreover, life insurance agencies is the representative
for insurance companies, thus the companies will response all the actions or
shortcomings of the authorized agencies. Therefore, Vietnamese Life
Insurance agencies play an importance role in the distribution channel that
brings the main sources of revenue for the companies, and the relationship
between the agencies and the companies is as closed as the relationship of
key employees in the Insurers.
However, there is a fact that the turnover rate of agencies in the life
insurance market in the world as well as in Vietnam is very high. The
intention to leave the business and the turnover has been identified as the
main obstacle to the success of insurers and any business globally. The
intention to leave the companies is very important because the employee goes
through a very serious consideration process before the final deciding.
Therefore, the firms need to have effective and timely solutions to eliminate
the intention of leaving agencies to help them reduce the turnover rate, save
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costs and improve business efficiency.
All things considers, the study of the topic: "Researching the factors
affecting the intention to leave the organizations of life insurance agencies in
Vietnam" has both theoretical and practical meanings.
1.2. Objectives, questions and tasks of
the research
1.2.1. Research o
bjectives
To study factors affecting the intention to leave the organization of life
insurance agencies in Vietnam. From that, the
authors will
propose some
solutions to reduce the leaving rate of life insurance agencies, and increase
the rate of maintenance the life insurance agencies in Vietnam.
1.2.2. R
esearch q
uestions
- Which factors that affect on the intention to leave the organizations of
life insurance agents in Vietnam?
- How do these factors impact on the intention to leave the organizations
of life insurance agents in Vietnam?
- Which solutions need to be taken to reduce the rate of leaving the
business, thereby increasing the rate of maintenance of the research capacity
of the insurers in Vietnam?
1.2.3. Research tasks
1) Review study
The review aims to research representative cases in the world as well as
in Vietnam about the factors affecting the intention to leave the the
organization of life insurance agencies.
Combining review and in-depth interviews to find research gaps in the
context of Vietnamese life insurance market.
2) Building research model
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Combining different approaches including in-depth interviews with
experts and the life insurance agencies and review, the
research will
identifies the most suitable factors, criteria and scales to study the factors
affecting the intention to leave the organization in the context of Vietnam.
From there, the research model, the survey questionnaire was established.
3) Impact factors test research
The data collected from the survey will be processed using SPSS 22.0
software to verify the factors that affect the intention of leaving the business
of the life insurance agencies.
4) Recommendations
Based on the results of qualitative research and investigative research,
the authors would like to proposes some solutions to reduce the rate of the
turnover of insurance agencies.
1.3.
Subjects and scope of the study
1.3.1 Research s
ubjects
- Factors affecting the intention to leave the business of life insurance
agents in Viet Nam;
1.3.2.
Research
s
cope
1.3.2.1 About the content
- Researching the factors affacting and the impact level those factors on
the intention to leave the organization of life insurance agents in Viet Nam;
- Studying life insurance agency individuals, do not research agency
organizations;
- Only researching the intention to leave the insurance companies; do not
study the decision to quit, fire and quit the job of life insurance agents in Viet
Nam;
1.3.2.2 About research area
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- The study was conducted in Vietnamese life insurance market from
2014 to 2019
1.3.2.3 About research time
- The study is conducted in the period 2014-2019
1.4. Research methodology and research process
1.4.1 Qualitative research
- Interview experts and agencies
1.4.2. Quantitative research
- The thesis uses descriptive statistical method
- Methods of investigation
1.5. New contributions of the thesis
- Determine the model and test the factors affecting the life insurance
agent's intention to leave the business;
- Clarifying the specific impact level of each factor affecting the
intention to leave the life insurance agency enterprise;
- Proposing recommendations to help life insurance agents lower the rate
of leaving the business of Vietnam life insurance agents.
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(Source: Author)
Activities Results
Tools
/Method
Overview of the
research
Research gap
The research model
Scale
Qualitative research
(In-depth interview
with experts and
agents
)
- Research model in the Vietnamese
context
- Scale system
- Questionnaire with that ladder system has
been edited and supplemented
- Results of analysis of the current situation
of the life insurance market, the
development of life insurance agents in
Vietnam
- Research hypothesis testing results
- Evaluate the impact of the factors on the
intention to leave the organization
- Average rating of life insurance agent in
Vietnam on factors
Qualitative research
Suggestions, recommendations
In-depth
interview
-
Secondary data
- Questionnaire
-Cronbach's
Anpha, EFA
- Regression
analysis
- Descriptive
statistics
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Diagram 1.1. Research method and process of the thesis
1.6. The layout of the thesis
The five chapters include the following:
Chapter 1: Introduction to the research
Chapter 2: Research overview and the impact of factors on Vietnam life
insurance agentcies' intention to leave the organization
Chapter 3: Research Methodology
Chapter 4: Life insurance agent in Vietnam life insurance market and
research results
Chapter 5: Some proposals and recommendations to reduce the rate of
leaving insurance enterprises of Vietnam life insurance agents
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CHAPTER 2: RESEARCH OVERVIEW AND THE IMPACT OF
FACTORS ON VIET NAM LIFE INSURANCE AGENCIES’
INTENTION TO LEAVE THE ORGANIZARION
2.1. Life insurance agenies intention to leave the business
2.1.1. Life insurance and life insurance agent
2.1.1.1. Overview of life insurance
The life insurance concept is mainly studied on two technical and legal
aspects. Either way, life insurance can be understood as a type of insurance
for insured events related to life, health conditions associated with the life of
the insured. Life insurance is an effective tool to help insured to plan and
implement future financial plans to protect relatives and family against
financial risks or difficulties human longevity
2.1.2. Life insurance agent
2.1.2.1 Concepts and features
Life insurance agent can be understood as an individual or organization
authorized by the insurer to perform activities related to the introduction, sale
of insurance products and other activities on the basis of an agency contract.
2.1.2.2 The role of life insurance agent
- For insurance enterprises
- For people participating in insurance
- For society and the economy
2.1.2.3. Classification of life insurance agent
- Based on agent's authority
- Based on the time of operation of the agent:
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- Based on the main duties of the agent:
2.1.2.4. Duties of agents:
- Selling insurance products
- Contracting
- Collecting insurance premiums, issuing receipts or other documents
under the authorization and guidance of the insurer
- Customer care
2.1.2.5 Agent's responsibility
Life insurance agents must ensure the performance of certain
responsibilities in agency contracts as well as comply with legal and
regulations of the business.
2.1.2.6. Characteristics and qualities required for an agent to succeed
and stand firmly in the profession
For a business with its own unique characteristics such as the life
insurance insurance, the quality required for life insurance agents to succeed
and stand firmly in the profession is affirmed that it is effective sales;
patience; effective time management; positive attitude.
2.1.2. The intention to leave the business and some concepts
2.1.2.1. Intending to leave the business
The concept of "The intention to leave the organization" has been paid
attention by many researches and clarified with many identical views.
However, the concept used in Bluedorn, A. (1982) is clear, easy to define and
evaluate the level of intention to leave the enterprise, so this concept is used
in the thesis. Bluedorn, A. (1982) said: "The intention to leave the
organization is understood as the plan of the employee's intention to leave
the current enterprise"
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2.1.2.2. Some related concepts
Decided to leave the business
Fired
Quit job
2.2. Factors affecting life insurance agents' intention to leave the
business
Rusell L. Handton (2009) affirms that the intention to leave the
enterprise is the main reason leading to the real decision to quit the business,
so Rusell L. Handton (2009) states that it is the main reason of many studies.
research to find out the factors influencing the intention to leave the business
in order to find timely and appropriate solutions to reduce the business exit.
Overview of the relationship between the factors affecting the life insurance
agent's intention to leave the business.
2.2.1. The relationship between organizational commitment and the
intention to leave the business
Nguyen Van Thang, (2015), on page 135 cited the statements of Meyer
and Alen (1991) defining organizational commitment as a psychological state
(desires, needs, responsibilities) showing the relationship. of the employee
and the organization and has an impact on the desire to stay in the
organization.
The results of the study Rusell L. Handton (2009) collected survey
results from 19300 emails confirmed that commitments to businesses have an
impact on the intention of insurance agents to leave in the context of the US
insurance market. In which, the strongest impact on the insurance agent's
intention to leave in both the short and long term is emotional commitment,
calculation commitment.
2.2.2. The relationship between business satisfaction and the intention
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to leave the business
The research by Russel L. Handlon used the concept of satisfaction cited
from (Spector, 1997): “Job satisfaction is how people perceive their work and
different aspects. of the job, which is the degree to which people like (are
pleased) or dislike (unsatisfied) their job ".
In the field of insurance, there is a difference in the impact of job
satisfaction on the intention to leave the business due to different research
contexts as well as studies that focus on research in different areas such as
research fields of non-life insurance, non-life insurance, life insurance, health
insurance; context; The sampling range is also very narrow and wide.
2.2.3. The relationship between organizational equity and the intention
to leave the business
Research by Rusell L. Handlon (2009), p. 6 quoted Martison et al (2006)
's definition of organizational equity. "Organizational equity is a term used to
refer to individual perceptions of fairness of decisions and decision-making
processes in an organization and the effect of those perceptions on behavior ”.
Research results of Rusell L. Handlon (2009) confirmed that the factor
of equity in business has the weakest impact among 3 groups of factors
(agency's commitment to business, organizational equity, and satisfaction)
with work to the intention to leave the business in the insurance industry.
2.2.4. The relationship between corporate ethical values and the
intention to leave the organization
Shelby D. Hunt et al (1989) on page 80 quoted the concept of Jansen and
Von Glinow (1985) asserting that the ethical values of corporate are not just
the foundation of all other values involved. to product and service quality, but
also helps to set and maintain standards that describe 'right' what to do and
"worth doing".
