Researching the factors affecting the intention to leave the organizations of life insurance agencies in Vietnam

life insurance agents in Viet Nam; 1.3.2.2 About research area 4 - 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. 5 (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 6 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 7 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: 8 - 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" 9 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 10 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". 11 Through the results of a number of studies on corporate values, corporate ethics, the relationship between corporate values and corporate ethics, impact of business value on results operation of insurance agents, impact of corporate ethical values on commitments of insurance agents, impact of corporate ethical values on personal choice, the issue of leaving business Insurance business is one of the personal choices that most affect the success of an insurance business. 2.2.5. The relationship between career orientation and the intention to leave the organization Steven W. Hellman (2000), p. 6 cites Van Maanen's study, (1978) defines new employee orientation as a formal socialization process, in which organization influences ergonomics. newcomers' degrees and values to match those in the organization; New employee orientation is designed to prepare a new person to assert a certain position in the organization. Previous studies have affirmed that the impact of career orientation helps to increase the employees' emotional attachment to the enterprise, helping employees to be aware of the nature of the job, the required qualities and to receive. Being aware of the career path, especially helping the employee through a difficult initial period, career orientation has an indirect or direct impact on the employee's intention to leave the organization. 2.2.6. The relationship between training and the intention to leave the organization In the field of Life Insurance, the review studies also show that with the characteristics of the Life Insurance, training is an indispensable factor to help the agent succeed and stand firmly in the profession and reduce the intention to leave the business. However, there is a need for research examining the comprehensive 12 impact of training on life insurance agent's intention to quit the business in Vietnam. 2.3. Research gaps, research models and hypotheses 2.3.1. Research gap Although there is no key theory to orient the factors affecting the intention of leaving the business of life insurance agents in Vietnam, but on the basis of inheriting the results of previous studies through research. The review confirms that there are 3 factors of commitment to businesses, job satisfaction, and fairness in the business tested to have a negative impact on the insurance agent's intention to leave the business. These studies were performed in different research contexts, focusing mainly on the US insurance market, however, the review results show that there are no studies to test the effects of the above 3 factors on with the intention of leaving an insurance agent's business only in life insurance. Corporate ethical values, career orientations and training are only assessed as the cause of the life insurance agent's quitting process but has not been verified. These studies have not conducted qualitative research and in-depth interviews to discover other factors affecting the intention of life insurance agents to leave the business. The general research results show that Vietnam only has research projects that reflect the current state of agents, but no studies have comprehensively analyzed, identified factors, tested and assessed the impact of factors to life insurance agency's intention to leave the business. Therefore, the Vietnamese insurance market is in need of comprehensive research through in-depth interviews with experts and insurance agents and testing to determine the factors affecting the intention to leave life insurers. 2.3.2. Proposing research model and research hypothesis Based on the general research results, the thesis proposes the hypotheses 13 and research model including 6 independent variables: (1) c Organizational commitment, (2) job satisfaction, (3) organizational justice, (4) corporate ethical values, (5) career orientation, (6) training; 1 dependent variable: intention to leave the organization. The thesis proposes the following research hypotheses: (H1) Organizational commitment has a negative impact on the life insurance agency's intention to leave the organization. (H2) Job satisfaction has the opposite impact on the life insurance agent's intention to leave the organization. (H3) Organizational equity has a negative impact on the life insurance agency's intention to leave the organization. (H4) Corporate ethical values negatively impact the life insurance agent's intention to leave the organization. (H5) Career orientation has a negative impact on the life insurance agency's intention to leave the organization. (H6) Insurer's training adversely affects the life insurance agent's intention to leave the organization. The proposed research model is shown in the diagram below: Diagram 2.1: Proposed research model 14 (Source: Author) 15 CHAPTER 3 RESEARCH METHODS 3.1. Overall research design The thesis uses two approaches including qualitative research and quantitative research. Qualitative research was carried out in an early stage (before quantitative research), the author conducted independent in-depth interviews with 6 experts and agents to determine the most appropriate factors and criteria and scales for with factors affecting the life insurance agency's intention to leave an insurance company in the Vietnamese context. Quantitative research is carried out using aggregated statistical indicators and analyzing data from available domestic and international documents to assess the current state of the insurance market, development and status leaving a Vietnamese life insurance agent's business. 3.2. Qualitative research 3.2.1. In-depth interview goals In order to complete the research model for the topic in the specific context of Vietnam, the thesis conducted in-depth interviews with experts and life insurance agents. 3.2.2. Guide to interview questions A guide to the interview questions is shown in Appendix 1. 3.2.3. Subject to in-depth interview Subjects conducted 6 independent interviews with experts including former General Secretary of the Vietnam Insurance Association; 1 Deputy 16 General Director of life insurance company, director of platinum media company, 1 training expert, 2 agent management and group interview including 5 life insurance agents. The results of interviews with experts and agents are shown in Appendix 2. 3.2.4. Results of interviewing experts and agents The results of interviews with experts and agents can be seen that organizational commitment, job satisfaction, organizational justice, corporate ethical values, career orientation and training are all confirmed affecting the Vietnamese life insurance agent's intention to leave the organization. 3.3. Research model and research hypotheses 3.3.1 Research Hypotheses (H1) Organizational commitment has a negative impact on the life insurance agency's intention to leave the organization. (H2) Job satisfaction has the opposite impact on the life insurance agent's intention to leave the organization. (H3) Organizational equity has a negative impact on the life insurance agency's intention to leave the organization. (H4) Corporate ethical values negatively impact the life insurance agent's intention to leave the organization. (H5) Career orientation has a negative impact on the life insurance agency's intention to leave the organization. (H6) Insurer's training adversely affects the life insurance agent's intention to leave the organization. 3.3.2. Research models 17 (Source: Author) 18 Diagram 3.1: Research model of factors affecting the intention of life insurance agents to leave the organization in Viet Nam 3.4. Quantitative research 3.4.1. Methods of implementation for secondary data The thesis uses the descriptive statistical method to process secondary data from the Department of Insurance Management and Supervision, the Vietnam Insurance Association, the summary reports of Vietnamese insurance enterprises, and reports. and domestic and foreign magazines. 3.4.2 Performance method for primary data 3.4.2.1 Design the questionnaire The survey questionnaire is presented in the thesis in Appendix 4. 3.4.2.2 Research sample and data collection The sampling survey was conducted with insurance companies in Hanoi, which is also a business focus area for life insurance companies. In order to ensure representativeness of the sample, 500 questionnaires were distributed. Survey time in March 2019. The total number of votes collected is 500 votes, the total number of rejected votes is 38, the number of valid votes is 462. The sample size selected and the response rate in the thesis ensure the representativeness of the sample. Summary of information on the demographic characteristics of life insurance agents participating in the investigation is presented in Appendix 8 to meet the accumulation of age, knowledgeable experience in life insurance agent profession, fully qualified degree to accurately answer the questionnaire. 3.4.2.3 Data Processing 19 The collected survey data will be processed using SPSS22.0 software. Firstly, the thesis evaluates the reliability of the system of measurement criteria to measure the reliability variables and the appropriateness of the system of measurement criteria. Multivariate regression analysis (regression) was performed to test the hypotheses. In addition, the descriptive statistical analysis method is used to analyze the life insurance agent's evaluation level for measurement criteria, evaluation, analysis of the current situation of the life insurance market In Vietnam, the development of life insurance agents and insurance agent policies of a number of insurance companies are the reasons for the intention to leave the business. Since then, the thesis proposes solutions and recommendations to reduce the intention of leaving the business of Vietnamese life insurance agents. 20 CHAPTER 4 LIFE INSURANCE AGENTS IN VIETNAM LIFE INSURANCE MARKET AND RESEARCH RESULTS 4.1. Life insurance agent on Vietnam's life insurance market 4.1.1 Overview of Vietnam's life insurance market Vietnam life insurance market, with more than 20 years of development, has achieved many remarkable achievements, always maintaining a high and stable revenue growth, making a significant contribution to the socio- economic development, step of integration with the regional and world markets. However, the Vietnamese life insurance market is still a potential market with many opportunities and challenges for insurance companies with a very low rate of market exploitation, socio-economic conditions... is increasingly creating better conditions for the development of the market, but businesses are increasingly facing fierce competition and increasing demand from people for service quality. 4.1.2 Development of life insurance agents in the Vietnamese life insurance market The situation of life insurance agency development in the Vietnamese life insurance market shows that the number of recruits is large, but the rate of leaving enterprises is very large, leading to low average productivity. The problem of recruiting, maintaining and developing life insurance agents is really the problem of the life insurance market in Vietnam, even for large life insurance companies in the market. This situation has a significant impact on the quality and efficiency of consulting, increasing recruitment and training costs, making it difficult for insurance business. 4.2 Analysis of survey results 4.2.1. Test scale 4.2.1.1. Evaluate the reliability of the scales The test results have confirmed that 7 groups of factors all have Cronbach's Alpha coefficients greater than 0.7 and correlation coefficients 21 greater than 0.4. The test results of Cronbach's Alpha coefficients in Table 4.5 and Appendix 9 have confirmed the high reliability of the system of measurement criteria. 4.2.1.2. Evaluate the conformity of the system of scales The thesis uses Principle Component Analysis method with Varimax rotation with stopping point when extracting elements with eigenvalue of 1, using EFA analysis. The results of the discovery factor analysis showed that all components of the scale of the independent variables had a total of 68.946%> 50% of the extracted variance. KMO index of 0.892 ensures the requirement, in addition, sig also gives 0.000 <0.05. Table 4.7 shows that 35 observed variables converge on 6 factors, including the group of factors in training, job satisfaction, commitment to business, fairness in enterprises, and career direction. with both factor weights 0.5. Thus, from the analysis results confirm that the scale system of the study is appropriate. 4.2.2 Regression analysis, testing the suitability of the research model and hypothesis The results of the investigation data confirmed the regression equation for the standardized Beta coefficients as follows: YD = (-0,401) CK + (- 0.367) HL + (-0,132) CB + (-0,203) DD + (- 0,068) DH + (-0,115) The results of the analysis of the survey data show that organizational commitment, job satisfaction, and corporate ethical values confirmed by the test results have the greatest impact and then the factors respectively: organizational justice, training and career orientation. 4.2.3. Analyze the dealer rating with the scales Analysis results showed that the intention to leave the agency business assessed at 3,0752, this showed that the agent did not confirm that he had no intention of leaving the enterprise. However, the assessment of the part-time agency group on the intention to leave the business has a higher average (mean = 3,8403) compared to the full-time agency group (mean = 2, 7288). 22 Descriptive statistical analysis of the agency's rating on variables shows that all independent variables have an average rating ranging from 3.1793 to 4.0725. The average results of agency assessment for independent variables also differ quite clearly between part-time and full-time agents. The average rating of agents for independent variables for part-time agents ranged from (2,5556 to 3,796), significantly lower than that of the full-time agency group (3, 4617- 4,1965). 4.3. Discuss research results Research results confirm the impact of factors on the intention to leave the business of Vietnam life insurance agents in descending order as follows: organizational commitment, job satisfaction, and corporate ethical values have the greatest impact, followed by organizational justice, training and career orientation respectively. The test results basically coincide with the general research results, confirming that organizational commitment, job satisfaction are the two factors that have the greatest impact on the intention to leave the business. Particularly for the life insurance market in Vietnam, the thesis has verified and affirmed the ethical value of the business, affecting the intention to leave the organization strongly, only after the organizational commitment, job satisfaction, the two factors that have the weakest impact are training and career orientation. The analysis results of the agency's assessment of the internal variables show that organizational justice, job satisfaction, corporate ethical values, career orientation, training, and organizational commitment, there is an average rating of agents for each variable according to decreasing level and not really high, some variables are just average. The intention to leave the business is assessed at a normal level. The full-time agent group had a significantly higher rating of independent variables than part-time agent and vice versa for the evaluation of intent to leave the business; The standard deviation of this group is generally lower than the standard deviation of the part-time agent group. Based on the results of expert interviews, market situation research, agency management policy research of Vietnamese insurance enterprises, the thesis analyzes some of the reasons leading to the rate of leaving. business abolition of Vietna