After Accession To The Wto, The Development Of The Chinese Insurance Companies Are Discussed

Since China's access to the WTO, the insurance market has beenthoroughly opened in China. Under such a background, Chinese insurers,facing foreign insurer's aggressive competition, must do as follows tosurvive, develop and grow up: first, they should hold the overall situationof the whole insurance environment and forecast its future developmenttrends, namely, using strategic foresights to understand some fundamentalquestions, e.g. how will the open property insurance market in Chinachange? What is the difference between Chinese insurers, most of whichhave operated businesses for only several or over ten years, and foreignones that have operated businesses for more than one hundred years?What is our advantage? How is Chinese insurer's industrial environment?What challenges will the governmental sectors meet, how to improveChinese insurer's comprehensive competitiveness? Through a comparisonbetween Chinese insurers and foreign ones in respect of operation and ananalysis of domestic insurer's advantages, this paper brings forwardcountermeasures for Chinese insurers to improve their comprehensivecompetitiveness. Besides the preface, this paper consists of three parts: Part Ⅰ. Comparison between Chinese insurers and foreign ones inrespect of operation, including business strategy, business management,product development, and marketing mode. With respect to businessstrategy and business management, since foreign insurers have a longoperation history, usually more than one hundred years, and anexperience of operating business in developing countries, they arefar-sighted when developing a new market. Their business strategies willnot change, regardless of whether their managerial staff has beensubstituted or not. Their long-term stable businesses will not beinfluenced by any outer unreasonable and illegal competition.Comparatively, some domestic insurers are lack of careful consideration.They only care about business scale. Most of their decisions will not lasttoo long. Moreover, each leadership may have different decisions.Therefore their long-term operation are greatly influenced. As forbusiness management, there is no obvious difference between Chineseinsurers and foreign ones in regard only to the system. Both have aninsurance checking system, claim-checking system, insurance policymanagement, fund operation, and internal control system. In fact, theiractual effects are very different, especially of the claim-checking system.This may result from different operation ways, but also from someexternal market factors. As for product development, a majority ofdomestic insurers are operating the "single-crop farming" and manyinsurance categories have bad pertinence and applicability. The terms andconditions are imprecise and cannot meet the insured's multiple needs.Some are even kept long in stock or become out-of-date. Many insurersonly have a limited number of insurance categories. Compared to foreigninsurers, Chinese insurers have many isomorphic insurance products.More than 90% of insurance categories are isomorphic. Such situationdirectly results in insurer's "repeated construction" and low-levelexcessive competition. With respect to the marketing mode, about 2million persons have passed exams and became insurance salesmen and1.08 million persons have passed the individual salesman exams so far.Most businesses of insurers come from marketing. Through a comparisonto the marketing management manner, we can see that most of Chineseinsurers are engaged in extensive operation. A branch may hire one to twothousand or even up to ten to twenty thousand salesmen. Such a trend isbecoming stronger and stronger and salesmen are required less. On thecontrary, foreign insurers prepare strict requirements for their salesmen.They pay much attention to salesman's training and individual careerplanning. Different management results in different recognition for theiremployers and has different impact on the customer service quality.Investigations have found that, after three to five years, about 70-80% offoreign insurer...