A Study Of Applications Of Cross-Selling In China Insurance Industry

After having experienced a 30% growth rate in several years in a row, the insurance industry in China has entered into a low-speed growth phase since 2004. More and more severe competitions, the more rational behavior of customers, the increase of distribution channels, the bottleneck faced by insurance sales agents, rapid update rates of insurance products shortening the product lifecycle continually, all of which lead to an increase in operation costs and a decrease in growth of the insurance industry directly. As a result, insurance companies begin to attach more emphasis to the development of existing customers. It is improving and exploring the value of existing customers' value that becomes the primary task in business analysis. As a new marketing method, cross-selling respond to this change perfectly. And with the development of the information technology, the new data processing techniques make it easier to implement. As far as the insurance sector in China is concerned, cross-selling will be a more fruitful and less difficult. This dissertation discusses the theory and practice of insurance cross-selling.The research of cross-selling in China is still in the preliminary stage, and somebody is not familiar with this field. So the author dwells on the concept of cross-selling, its theoretical foundation and technical basis firstly, giving a comprehensive explanation of cross-selling, as well as an evaluation of the existing research methods. Then, she focuses on the insurance sector, and demonstrates the necessity, benefits and difficulties of cross-selling. Subsequently, combining the theory of data mining, the author analyzes the application of data mining in cross-selling, and builds the cross-selling model based on data mining. Finally, taking the data of an insurance company as a sample, the author studies the possibility of identifying the opportunity of cross-selling in existing customers, and discusses the result.Cross-selling has the necessity and importance to China's insurance industry in the mode of mixing operation management. It is the inevitable trend of domestic industry. We should implement cross-selling as soon as possible, and develop the potential of meeting the needs and cultivating loyalty of customers, then meet the challenge of global economic integration.