Life Insurance Companies To The Electrical Distribution Center Performance Improvement Path Analysis

Developing the channels for telephone sales has been the most effective method to enhance the competitive advantage for domestic life insurance companies. Almost all domestic life insurance companies have been or are preparing for this work.By analyzing the on-going development of the Chinese life insurance industry and the difficulties that the traditional distribution channels facing, as well as the business model, the channel advantage, regulatory policies, obstacles, etc., the author pointed out that it is definitely the first option to construct their own telephone sales centers so as to conduct the tele-sales by using the internal and external customer database.The author examined both static and dynamic business objectives of tele-sales centers, then raised the profit and loss analysis model and the performance index analysis model. Based on the profit and loss analysis model, the author concluded that increasing the first year premium per capita and decreasing the variable cost ratio are the main ways to raise the management level and keep sustained growth of the business. Furthermore, the author studied the factors which have impacts on the profits and value of the life insurance companies hierarchically, then proposed the way that tele-sales centers contribute to the profits to life insurance companies regarding the issues, such as the performance enhancement and the tele-sales channel construction, that the decision makers in the companies cares. Based on theoretical analysis and years'working experience in the insurance industry, the author stated the working steps of increase the five key capabilities in operational management of tele-sales centers. Moreover, the author proved the accuracy and the practicability of these measures by using the true data of the tele-sales center in China Pacific Life Insurance Company. These achievements can be used as an operation manual by the executives.