The Research Of Collaboration Model Between China's Insurers And Banks

In the contexts of further globalization and integration of financial services, the competition between the banking and insurance sectors has become increasingly intensified worldwide. Insurers and banks have therefore recognized multi level and all-round cooperation is now an important development strategy to achieve win-win and competitive advantages, with a trend of getting even more diversified and closer. Overall, the collaboration between the banks and insurance companies in China remains in a preliminary stage. With China's entry into WTO as well as the further deregulation of its financial industry, the rivalry between these two financial sectors will be fierce in China market. To tackle the throat-cutting market competition, enhanced collaboration based on the current cooperation seems to be the way of gaining competitive edges for banks and insurance companies alike.This article aims to study the collaboration between China's insurers and banks and make a conclusion of collaboration model development. Chapter 1 main presents the contents, collaboration model and its character, and explains the reason to the primary collaboration model. Chapter 2 states the basic theory of the collaboration between insurers and banks. The keen competition make insurers and banks setup the intensive collaboration model, which benefit both and consumers. In chapter 3, the collaboration models of western countries and the advantages and disadvantages of them are discussed. Chapter 4 brings forth the general principle of the collaboration between China's insurers and banks. China's the necessity of improving and reforming this collaboration model is elaborated in details. Based on the analysis on the several mature collaboration models between the banks and insurers in the western countries and the reality in China, this article brings forth the viewpoint that financial holding company is the best collaboration option for China's insurers and banks at this stage. The last chapter focuses that the full-scale collaboration between insurers and banks is a progressive process. This process will require continuous upgrading of management, advancement of the legal system, improvement on the supervision regulations, with a clear understanding of the situations of the market and various companies. Additionally, further research, system and product innovation and better information infrastructure is needed in the different phases of optimizing the collaboration model for insurance companies and banks in China.