Direction Of Development, Bank Insurance - Insurance Marketing

This essay aims to discuss the trend of the insurance marketing in China. Over last two decades, the insurance market in China have been changed dramatically, developed from a monopolized market to a relatively competitive market.With entering WTO, an increasing number of foreign insurance companies have been permitted to set up their branch offices in China. The domestic insurance companies are being encountered powerful competition from them, especially in marketing and providing services to the customs. The key problem is to find the way of gaining competitive advantage. Distribution channel is, according to the theory of competition, one the most important elements that should be taken into account when considering a leading theorist of competitive strategy. Many successful examples have proved that, the insurance company, by using bank as the main distribution channel, would be in advantage in comparing with their competitor. However, the barrier for developing bancassurance in China is the restriction of financial law and regulation introduced by the government. Amendment should be made to the relevant articles in governing laws and regulations. Besides, the product innovation and the applying new technology would enhance the attraction of bancassurance. In conclusion, bank insurance distribution is one of the important development in sales of insurance products either internationally or domestically and worthwhile to follow as entirely as in developing China insurance industry...