China's Insurance Agent System The Main Issues Studied

Insurance agents consist of three parts: individual agents, concurrent agents and agent companies, who are authorized by insurers to deal with insurance business within the scope of the insurers' delegation, and receive commissions from insurers. This thesis's purpose is to analyze the main problems existing in present China's insurance agents market. It includes four chapters.In chapter one, the thesis firstly clarifies several definitions about insurance agents, and then introduces foreign insurance agents market in order to enlighten the development of China's insurance agents. Based on the understanding of the present situation of China's insurance agents market, three major conclusions are put forward from the macro-perspective, which are, namely, structure defect, the greatest importance of individual agents and the great impact of concurrent agents on China's insurance agents market.Chapter two is the thesis's main focus. In this chapter, the Principal-Agent theory is employed to analyze the cause of the individual agents problems. As incentive scheme is essential to solve the Principal-Agent problem, three models of incentive scheme are introduced. At the ending of chapter two, based on the analysis of three models and the practical situation of insurance companies, one instructive design is brought with in order to solve the incentive problem of insurance agents.Chapter three mainly expounds the major problem of agent companies. Then, three models are designed to discuss how to enhance the speed of the development of agent companies. Concurrent agents are very important to the whole insurance agents market. Chapter four analyzes its main problems and puts some possible suggestion to solve them.