Tp Insurance Company Life Insurance Agent Incentive Mechanism Research

The insurance industry in china has experienced a rapid increase thirty years since the reform and openup policy. The growth of insurance premium has increased by over 20% each year. It is growing much faster than the Chinese GDP, and is regarded as the most booming industry in the Chinese economy. Along with the development of the insurance business, especially the life insurance, more and more insurance agents has emerged in the market, and the service scope has been largely extended. However, there are problems during the market becoming perfected. For instance, agents may over exaggerate the benefits of the products, and hide or misinterpret the insurance policies or even cheat clients. These behaviors have badly influenced the reputation of the insurance business in China. China’s insurance market is still at the initial stage. The principal-agent relationship between insurance companies and agents is the main cause of information asymmetry, adverse selection and morality risks. Therefore, a well-established motivation system is required to protect the enterprises from the operating risks and improve the quality of agents.Based on the study of the motivation theory and principal-agents relationship, this essay applies the theories into practice by analyzing the case of TP Life Insurance Company. Given the general explanations of the motivation system, including selection, training, salary, welfare and performance valuation policies, this essay also provides the problems and solutions during the reform of TP Life motivation system. Firstly, in the aspect of the agent team structure, the essay fully analyzes the advantages and disadvantages of the team structure. Secondly, this essay compares the standard training and special training systems. Innovations during the special training process are introduced. Thirdly, a research has been done on the present salary and welfare policies. The feasibility study of commission system reform has been preceded. And more over, performance valuation discusses the career path for the superior sales professionals. Although many of the reforms are still under process, some problems still occur, the case study of TP Life has contributed valuable opinions on the reform. These will benefit the problem-solving process in future.By examining the motivation system of TP Life Insurance, this essay further considers the following issues:how to bring the hidden motivation for agents into play; how to balance the relationship between the quantity and quality of agents, long-term and short-term development, scale and efficiency; how to create a healthy view of life insurance agents for their future development. The solution to all the problems above will simulate a higher hierarchical motivation to life insurance agents.The insurance industry in China has already made a great progress. However, it is still at the initial stage. The market system needs to be perfected day by day. The motivation system needs to be completed step by step. Laws and regulations have to be changed continuously. This paper combines the theories and actual cases together on studying the motivation system in TP Life. The hope will enable to provide some references for insurance companies which plan to promote the change.