The Bank Insurance Model Study Of New China Life Co., Ltd

Bank Insurance (BI) is a type of insurance in which insurance companies sell specific insurance products through bank and/or postal networks. Currently it has become an important insurance practice widely and efficiently adopted by the developed countries. BI represents current trends and developments in international finance insurance enterprise. With China's officially becoming a member of the World Trade Organization (WTO), national insurances are faced with the challenges from the international society and should increase its competitiveness. This paper will systematically analyze the successful experiences of the foreign BI, propose practical strategies to improve the deep level developments of national BI, and aims at promoting the comprehensive competitiveness of national BI. These analyses and goals have very practical significance.BI has three coordinating advantages compared to the traditional management and sales methods. It reduces costs, meets customers' needs and adapt to the income levels. First, it reduces costs through the sharing of resources of materials, technology, clients and brands; Second, it meets clients' needs by providing more service options and reduces their costs on information collecting and exchanging; Last, in coordinating income benefits, banks can realize large scale economy by sharing product sales, development and networks.BI in our country started relatively late. Since 1995, some domestic banksand insurance companies have gradually started the cooperation, which begun to reach its highest level since 1999. It has been developing fast in recent years, but there are many obstacles and difficulties such as those in system, concepts, technologies and product innovations. The cooperation and collaboration between banks and insurance companies stays at superficial levels, which, in turn, hindering it further developments. BI, as a new configuration of financial systems, has big potential and prospects, to which traditional insurance sales channels can not be paralleled. Therefore, in-depth and wide research into BI is of great significance for professionals and practitioners in this area.Based on the analyses of BA's characteristics and the domestic and foreign developments, this paper will coordinate the theory and application research, study the BI's model from the actual experiences of Xin Hua Life Insurance Limited Corporation, point out the extant issues, and propose the suggestions and models for developments. The model proposed in this paper is the one that operates BI through financial groups controlling the shares. The paper also presents some strategies for financial monitoring institutions to create better culture and environments for our countries' BI developments.