Analysis On Sales Misguidance And The Management In The Life Insurance Market

The topic I discuss in this thesis is misguidance in life insurance sales. Actually, the phenomenon lies not only in the bank of life insurance but also in other banks. However, people pay more attention on these phenomena in bank of life insurance than any other bank of career. Because it seems that life insurance product has no form and is invisible. People only can read the clause in the insurance contract. Life insurance regards the life and human body as the policy object. When the insured happen to die, physically disable, be ill or keep alive to the point which was mentioned in the contract, the life insurance company should pay out policy proceeds to the insured or beneficiary. Therefore, in the term of life insurance, if misguidance happened in someone, benefit of policy owner and the insured would be damaged. It not only does harm to the image of the life insurance company and salesman but also makes bad effect on society.At present, the main forms of misguidance are these as follows: improper sales, confusing the conception, concealing the important information and exaggeration on effective of insurance product. All these actions make many badly social influences such as customers having deadly pecuniary loss, image of salesmen being broken, big loss from the insurance company and huge trouble on proceeding development in the insurance.There are a lot of reasons for misleading insurance sales, such as excessive speed on the development of insurance, complication and profession of the insurance products, salesmen's absence of idea of being honest and structural problems of the insurance.Therefore, for having a harmonious society, the central government should define the word misleading and make new rules for publishing the actions in the insurance law. Second, the institution of insurance supervision should strengthen the supervision on insurance companies and the inner management of insurance companies. The third is that the supervision institution should take new measures to remove the new forms and new actions on sales misleading of life insurance.