China Insurance Xinjiang Auto Insurance Marketing Strategy Research

Great changes have taken place in the environment of the Chinese insurance market since the introduction of the policy of reform and opening to the outside world. With China's entry to WTO and the increase of insurer carrier as a result of an influx of foreign companies into China, a more complex and competitive market is coming into being which pose a challenge to the whole insurance community.Accounting for more than 50% of property & casualty business, motor insurance stands at an overwhelming position. The latest reform on motor insurance, started as of 1 Jan 2003. Deregulation of motor insurance tariff and clause is an international convention. It is believed that deregulation of insurance clause and tariff could only be possible when the market reaches a more mature stage. For many countries, it took a long period to open the motor insurance market. The process is also a gradual one. By the impact of both financial deregulation and the commitment of Chinese government made to other countries, the abolishment of premium tariff and introduction of competition mechanism is a necessary choice.The writer, by applying marketing theories together with working experiences, has made 3 basic assumptions: 1. Deregulation of motor tariff and clauses is an indication of a higher level of development of insurance market. The latest motor insurance reform was put into force as the country's insurance industry is moving forward to market driven mechanism and international practices. 2 Insurance marketing will gradually become an important part of management of stated owned insurance enterprises. In the years that follow, marketing theories will be more widely used in insurance practices. 3 By means of intensifying insurance marketing, enhancing service quality as well as building up customer loyalty, insurance industry will be able to make more profit.In order to validate the above assumptions, the thesis focuses on the following statements: The first part presents an analysis introducing the background of motor insurance marketwhen the motor insurance reform was carried out. It demonstrates particularly the necessity and feasibility of motor insurance reform. In the meantime, the part analyzes the feasibility of the latest reform taken by China Insurance on motor insurance. The second part focuses itself on the analysis of motor insurance marketing by illustrating the example of China Insurance Xinjiang Branch. The company targeted agricultural vehicles as new marketing area and made feasible marketing strategy in accordance with the situation of itself. The part focuses on the importance of marketing in motor insurance and also analyzes the limitation of price competition. Finally, a conclusion is made that serviceability is an important characteristic of insurance. The third part focuses on expanding marketing channels, close link among service innovation, customer loyalty and making profit. This part also illustrates service offered by motor insurance and some practical method. At the end a conclusion is made: Serviceability is an important characteristic of insurance. The motor insurance reform cannot be easily regarded as liberalizing premium rates. Insurance company needs not only to change traditional think mode, operation mode but also expand marketing channels and innovate services. Customer needs should be highlighted. An intellectualized and solid insurance service net should be established so as to achieve more extension of insurance services and fulfill the fundamental need of various insurance services. Highly efficient and good quality service will help build up stable customer base and new market share and competition will be won.