ITOCHU Announces Membership Insurance Services for Honda Motorcycle Owners in Vietnam
September 20, 2012
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that Siam Cosmos Services Co., Ltd. (headquartered in Thailand; Hitoshi Ikoma, Managing Director; hereinafter “Siam Cosmos”), a subsidiary in its insurance brokerage business, has established Cosmos Services (Vietnam) LLC, a wholly owned administrative and insurance agent, to offer membership services, including insurance, to owners of motorcycles from Honda Vietnam Co., Ltd. (headquartered in Vietnam; Masayuki Igarashi, General Director; hereinafter “Honda Vietnam”), which sells the most motorcycles in the country. This is the first time a membership service has been offered to motorcycle owners in Vietnam.
Siam Cosmos has been providing consumer insurance services in Thailand since 2000, including theft insurance and extended warranty service for motorcycles and home appliances. The number of its insurance contracts has been steadily increasing in recent years, due to the expansion in buying power brought about by Thailand’s economic growth. Siam Cosmos’s cumulative number of contracts is about 2 million, and about 300,000 new contracts are concluded every year. As a leading company in the B2B2C business model in Thailand’s insurance industry, Siam Cosmos has extensive experience in and knowledge of insurance operations.
ITOCHU has decided to develop businesses in Vietnam in cooperation with Honda Vietnam to bring the knowledge it has cultivated in Thailand to other Southeast Asian countries, where consumers are enjoying a tremendous increase in buying power due to economic growth. The membership services are scheduled to be offered first to owners of premium scooters (high-grade models), and gradually be expanded to cover other models and areas. Vietnam has the largest number of motorcyclists in the world, with a little over 3 million new motorcycles sold each year. Among motorcycle dealers, Honda Vietnam leads the industry, with a little over 60% of market share (as of 2011). These new services are intended to convert Honda Vietnam motorcycle owners into members by offering benefits including motorcycle theft insurance. Membership is offered at over 600 official dealers across Vietnam when new motorcycles are sold or maintenance services such as oil changes are provided. Through these new services, Honda Vietnam intends to increase customer satisfaction, capture customers, and improve its after-sales service. Its insurance services will be underwritten by PVI Insurance Company, a member of the PetroVietnam Group, which is among the largest state-owned companies in Vietnam, and also the largest local enterprise.
ITOCHU is already involved in overseas insurance brokerage businesses in Thailand, South Korea, Taiwan, the UK, Singapore, and Vietnam through its Cosmos Group, headquartered in Hong Kong. ITOCHU will continue to develop its consumer insurance services business, which is one of its focus areas, in other countries, particularly in China and other areas of Asia where consumer spending continues to increase.
Profile of Cosmos Services (Vietnam) LLC
100% by Siam Cosmos Services Co., Ltd.
|Managing Director||Hitoshi Ikoma|
Profile of Siam Cosmos Services Co., Ltd.
|Business area||insurance and reinsurance brokerage|
Profile of Cosmos Services Co., Ltd. (Hong Kong head office)
|President & Managing Director||
|Number of employees||150|
Thailand, South Korea, Taiwan, the UK, Singapore, and Vietnam (new)
insurance and reinsurance brokerage