Research On Insurance Service Demand And Supply And Its Value Creation In China

In the past 30 years, the insurance industry played an increasingly important role in China economy and employment growth with its rapid development and the openness of China insurance market following WTO conditions. With the economy and society development, reform and openness in China, the insurance industry is facing rare development opportunities and challenges. At present, it is of a big issue that the contradiction between the huge potential demand and a serious shortage of effective supply for insurance service, and its influence on value creation of insurance service, which is vital for the sustainable survival and development of the insurance industry and the insurer in China. Therefore, the research has become very urgent and necessary on the relevant pattern and laws of insurance industry achieving high growth; at the same time, the management of the insurer are also seeking strategic methods to promote the rapid development of the business and maintain long-term competitive advantages.Value creation is the ultimate goal of the enterprise. Service value creation is a huge project that calls for analysis from multiple dimensions, the depth study of service value creation and innovation is in the process to explore the nature of the service. summaring the existing research, it is not difficult to find the studies is still at the initial stage home and abroad and the understanding on service value creation and innovation essence is in gradual deepening. Currently the study on value creation of insurance service is weak, while the development of practice needs the guidance in theory.Based on the society and economy situation and development, and the situation the insurance service theory is weak and the practice needs the guidance support in theory, It's of significance both in theory and in practice with the theme "Research on Insurance Service Demand and Supply and Its Value Creation in China".There many multi-disciplinary theories, methods and results are used in this disseration covering the service and the service economics and related theories, demand and supply theory, demand and supply equilibrium theory, insurance, finance and their service theory, theory of value creation and that of innovation etc., using a standardized analysis and empirical analysis of the combination of methods, comparative analysis method, deductive and inductive methods and interdisciplinary research methods. Commenced with the study of insurance service and its demand and supply, discussed the relevant issues of insurance service, study how to achieve value creation through insurance service innovation and from the prospective of administration and practice, put forward solution and countermeasure suggestion on innovation mode and contents of China insurance service value creation.Insurance service comes following the apprearance of insurance. Since the achievement of the insurance value relying on the provision of insurance services, insurance services is the carrier of the insurance mechanism and the reflection of its operation. Insurance services is a commodity in essence with value and use value. The value creation of insurance services is determined by the equilibrilium of insurance service demand and supply. With the development and progress of economy, society, modern science and technology, value creation mode is changed in which innovation plays an increasingly important role. Innovation is the fundamental means to maintain competitive advantage for an enterprise, an industry and a nation, so does insurance innovation which is the way to achieve value creation of insurance service. The development of insurance industry and insurance service innovation are inseparable, there is development through innovation, development is bound to innovation.It is composed by the introduction and nine chapters in this disseration, the main contents and important viewpoints are as follows:In Introduction, the background and significance of the theme are described, study of the insurance service at home and abroad was sorted and summarized; the basic concepts are defined including insurance, insurance services, demand and supply of insurance service, insurance service value creation and service innovation; the objective of this study, research methodology and research framework are summarized, innovation and lack of the research are also to be concluded, which is an significant theoretical groundwork for the following parts. In Chapter one, multi-disciplinary theories and their applicability for the study of insurance service value creation are introduced and analyzed.In Chapter two, the essence and character of insurance service are analyzed. There the connotation and extension of insurance service, the relationship between the essence and function of insurance and those of insurance service are discussed and analyzed, the similarity and difference among the general service, bank service and insurance service are analyzed and summarized. The following viewopints are put forward, insurance services is a commodity in essence with value and use value, the achievement of the insurance value relying on insurance service supply, insurance service is the carrier of the insurance mechanism and the reflection of its operation.In Chapter three, the insurance demand is analyzed. First, the contents of insurance service demand and its influence factors are analyzed. Second, its influence factors are analyzed followed by a brief introduction of China insurance service demand evolution and status. Third, followed by a brief introduction of those in the United States, Japan and other developed countries, the evolution, status and influence factors on insurance service demand at home and abroad are compared, analyzed and summarized to get some inspirations to China insurance service demand development.In Chapter four, the insurance supply is analyzed. First, the contents of insurance service supply and its influence factors are analyzed. Second, its influence factors are analyzed followed by a brief introduction of China insurance service supply evolution and status. Third, followed by a brief introduction of those in the United States, Japan and other developed countries, the evolution, status and influence factors on insurance service supply at home and abroad are compared, analyzed and summarized to get some inspirations to China insurance service supply development.In Chapter five, the equlibrium of insurance service demand and supply is analyzed. the conditions and effect of equlibrium, and the cause of the contraction between insurance demand and supply are analyzed. Second, based on the perspectives of environment, institution and insurer, the causes of the contradiction between insurance service demand and supply are analyzed, as well as its impact on relevant parties. Lastly, the special significance on the equilibrium of insurance service demand and supply are put forward including promoting employment in our society, defending economy and society stable development, continuing to expand service areas and serve the new rural construction, supporting the financial system reform and promoting stable development of capital market.In Chapter six, the value creation of insurance service is analyzed. First, the connotation and manifestations of insurance service value is discussed, the relationship between value creation and insurance services demand and supply and its equlibrium, that with relevant parties are analyzed and summarized; followed by exploring the establishment of insurance service quality evaluation system; again, according to value creation theory to explain the value creation model and the importance of the elements in it, in particular, innovation is critical to value creation, the present status, issues and causes of insurance service value creation in China are analyzed. As a result, there the logical relationship among the equlibrium of demand and supply of insurance services, its value creation and innovation is linked, which is the foundation for the subsequent analysis.In Chapter Seven, insurance service innovation is analyzed as the main way of value creation. First, it's concluded that insurance service innovation is the main way of value creation followed by the analysis on its connotation, extension, characters, contents and strategy. In order to achieve maximum value, insurance service innovation should be focusing on the influence factors of demand and supply in China's insurance services, competing through innovation in the value space available, while constantly creating new customer value to lead the market. Insurance service innovation in China at this stage is of need and urgency. According to the driving force source of insurance service innovation, there the internal and external support and security by government, regulator and the insurer should be provided, with some specific recommendations followed.In Chapter Eight, it's analyzed how to construct insurance service innovation system in China. Combined the current status of China insurance service, the principle, objective and contents of the innovation system are put forward. Then the basic elements, process and model, emphasis of the insurance product development are analyzed, and advices are put forward on insurance product innovation, service organization innovation, process innovation, format innovation and technology innovation, in particular the implementation of standardization management of the insurance service quality and some recommendations made.Conclusion. It is an eternal theme to achieve value creation by insurance service innovation.The main contributions of this dissertation are as follows:1. Constructed the research framework of supply and demand of insurance services and its value creation.Focused on the insurance value creation objective, the analysis of the relevant literature and theory are analyzed and summarized, by analysis of the carrier of value-insurance service and its demand, supply and equlibrium, their relationship with value creation, those of other countries and regions are used for reference the experience and lessons in insurance demand, supply and equlibrium, the development and innovation in insurance service, combined with the current situation of insurance service in China, the way of value creation is discussed, in which the research framework of supply and demand of insurance service and its value creation are constructed. The research framework is relatively new with some significance both in theory and in practice, commenced with the analysis of insurance service and its demand, supply and equlibrium, focused on objective of value creation, comprehensive use of a multi-disciplinary theories, results and research methods.2. The analysis and discussion is systematical in theory on insurance service demand, supply and its equlibrium, value creation and other related issues.There the research is based on the weakness of insurance service theory, and focused on academic research to enrich the theoretical understanding of insurance services and sublimation, to be conducive to guide the insurance practice.There many multi-disciplinary theories, methods and results are used in this disseration, using a standardized analysis and empirical analysis of the combination of methods, comparative analysis method, deductive and inductive methods and interdisciplinary research methods. The analysis and discussion is systematical in theory on insurance service demand, supply and equlibrium, value creation, innovation and other related issues, which makes the theoritical basis and tool of insurance service value creation futher rich.The applicability of service economics theory to this study indicates that as part of the service industry, the insurance industry's trends and contribution to economic growth must follow the basic rules in the service economy. The equlibrium of insurance service demand and supply is significant, which is helpful for playing the functions of insurance service, contributing to employment, social and economy development, and achieving value creation; These theory provide the basic theoretical foundation for the research such as demand theory, supply theory and the equilibrium theory of supply and demand; the conditions of China insurance market openness in WTO agreement provide the basis of analysis on market and challanges; Internal marketing theory is the basis for the analysis of insurer HR management in China insurance service value creation system; Value creation theory and innovation theory are the core basis for insurance service value creation research with the conclusions such as value creation is the ultimate goal of the enterprise, innovation is the source of economy growth, and innovation is the main way of value creation.3. Explored the problems and their causes in China insurance service research and practice in depth.From the viewpoint of insurance service value creation, put forward insurance service is the carrier of its value, the quality and quantity of insurance service value is determined by those of insurance service supply. Based on the perspectives of environment, institution and insurer, analysis the causes and the contradiction between insurance service demand and supply, and explore how to achieve value creation through insurance service innovation.From the perspective on the insurer, the contradiction between insurance services demand and supply is caused by the imperfect corporate governance of the insurer, weak internal control binding, the lack of insurance service innovation strategy and management systems; the overall quality of personnel, faith service awareness to be further improved; operation and management systems of insurance services need to be improved. From the perspective on the enviorment and system, there are many causes including the impact from the development and changes of macroeconomy, the impact from the openness of insurance market, weak sense of insurance of the public, lower consumer confidence in insurance service, imperfection of administration system of insurance industry and lack of breakthrough in insurance service study.4. A number of academic viewpoints with value and significance both in theory and in practice are made through the analysis.A number of view points are put forward after analysis and study such as the following:put forward the viewpoint of insurance service is a product or a part of product, which is the basis of insurance service value creation in theory; put forward the character of insurance service and its relationship with insurance; it's available to create value by insurance service; the contents and channel of insurance service value creation, to provide policy suggestion on insurance service improvement; there the internal marketing theory should be applied by the insurer to encourage the employee carrying out innovation. There the quality standardization management of insurance service should be applied as the service formalization innovation.Since it's mainly focused on the demand and supply of insurance service and its value creation from the perspective of the insurer, it's still necessary to have further research from the perspective of the outside parties such as regulator and customer; Subject to the measure difficulty of service innovation, the empirical study is necessary to be continued to do; With high-tech development, technological innovation in the insurance services still needs further study. We hope this dissertation will call for more attention to insurance service and providing support for its innovation and value creation from the government and related parties, in order to make insurance service play an important role in the protection for harmonious society and promote development and progress of the insurance industry.