Insurance International Trend Local Enterprise Policies To Deal With

The integration of the global economy has become the main trend after stepping into the 21st century. As an essential component of the modern economy, the insurance industry has to open up to the world in order to survive and develop. Since the early 80s of last century the domestic insurance industry beginning to implement the opening―up policy, the domestic insurance market has attracted extensive attention from the international insurance industry. The practice indicates that the entry of foreign insurance industry into domestic market has brought in both opportunities and challenges. Opening up insurance market means a historical challenge for the development of domestic insurance industry. Firstly, opening the door to the world will undoubtedly bring in great external pressure to domestic insurance industry, which will coerce our national insurance industry to walk up the way of reengineering in order to participate in more fierce international competition. Secondly, opening―up will force our national insurance industry to set up the competition mechanism with Chinese characteristics according to the international requirement by innovating new products and service and transforming the traditional internal operation mechanism, for the sake of survival and development. Thirdly, during the process of opening―up, foreign insurance institutions will bring in new business insurance, marketing mechanism, advanced operation and management experience as well as ways of offering high―quality service and service concept. Finally, it will bring in lots of training and practicing opportunities for insurers, which will be helpful in improving the general quality of the whole insurer staff. Meanwhile, foreign insurance companies will bring in a series of challenges. Since the insurance industry in developed countries has experienced a long history, they have accumulated advanced management experience and abundant capital, which will be the absolute advantage compared with domestic companies. Opening up the door will make the competition of domestic insurance market more and more fierce, which will further make the market disorder and uncertain, and then influent the healthy developing of domestic insurance industry. Taking both opportunities and challenges from insurance internationalization into consideration, domestic insurance companies have to take certain measure to further open up the market to the world and meanwhile protect their dominant position in domestic market. This paper, from the perspective of insurance institution internationalization, analyses the approaches of domestic insurance companies adopted to handle impact from foreign companies. It takes the internationalization of China Safety Insurance Corporation as an example, aiming to guide the practice other companies. This paper includes four chapters. Chapter One briefly introduces the concept, necessity and approaches of insurance internationalization. Chapter Two mainly analyses the impact from insurance internationalization. This chapter firstly introduces the developing state quo of the domestic insurance companies, and then analyses the impacts from the perspectives of market competition and business principal part. Chapter Three explores the core competency in insurance industry, based on which it compares the core competency of domestic insurance companies with that of foreign ones. Chapter Four mainly analyses the internationalization process of China Safety Insurance Corporation. Finally, this paper makes a conclusion that during the process of internationalization, domestic insurance companies should actively take measures to meet the challenges from foreign insurance companies, and then adjust their organization structure, financial budget, human resources and so on, so that they will survive, develop and flourish in the future.