The Impact Of The Enterprise Annuity Market On China's Insurance Industry

Since 2004, China has enacted a series of laws and regulations, which greatly promotethe development of enterprise annuity. At the same time, there has been established the trustpattern in terms of enterprise annuity operation, which makes all financial institutions andprofessional bodies can be involved in the management of enterprise annuity. However, to thefinancial institutions and professional bodies, enterprise annuities have brought not onlyopportunities but also challenges, which are respectively the broad space for development andthe increasingly fierce competition. As a major financial sector, the insurance industry isfacing this situation. This article first introduces the essence of enterprise annuities,then bycomparing China's insurance industry's advantages and disadvantages with its majorcompetitors' in the enterprise annuity market, defines the roles of China's insurance industry.In the end, after analyzing China's insurance industry's opportunities and challenges, thearticle explores the strategies that it can implement.First, China's insurance industry may choose every roles except the trustee role under itscomparative advantages, which provides enterprises with the "one-stop" service includingtrust management, account management, investment management, or the "split-type" serviceonly including certain management functions. Secondly, the insurance industry can implementsome strategies in order to enhance its competitive edge, which include establishing pensionmanagement companies, improving core competitiveness of insurance companies, developingthe insurance financial groups and promoting preferential tax policies to reform.