A Research Of Bancassurance Channel Based On Personal Financial Planning

First in Swiss, then the U.S., Japan and Hong Kong, Personal finance has become the one of the most profit areas of financial industry. It effectively converts savings into investment. In addition, by re-configuring household assets, it assists in the process to achieve financial goals. Besides, it also is a key measure to promote the development of national economy and increase social welfare. In recent years, with the constant development of our economy, personal finance has evolved to be a huge potential market and the focus of financial institutions’ competition.With the financial market continues to grow, insurance products as risk management, economic security and effective means in recent years has been more and more important and is being widely accepted by the market, the rapidly turning into an important tool of personal finance. Specifically, the insured pays premium to obtain coverage. And insurers in return promised that in the case of losses certain compensation to the insured. The insured seeks a sense of security and a measure to deduction in anxiety. On the other hand, insurance products offer long-term investment, preservation and accrual of the property value. Therefore the insurance product is a special financial product which has functionalities of both risk management and value preservation/accrual. And it has profound implications to the management of risk, stabilizing family finance, and diversifying options for investors. Generally speaking, insurance product is an essential personal finance tool, as well as the most basic the financial product.Because of its advantages in its distribution channel, Bancassurance quickly became the most important part in the insurance market. The modern bancassurance originated in the nineteen seventies French, along with economic liberalization and changes in regulatory environment, a new business emerged through the interaction of the banking industry and the insurance industry. Because of the implementation and operation of the financial supervision mode, in order to enhance their competitive ability and the profit ability, financial institutions have become more and more popular among the cross marketing. Especially in recent years, commercial bank pays more attentions to its retail business. Insurance has become an important source of income for banks. In a relatively short period of time the bank insurance has become one of the top three distribution channels in our country!But at the same time, the bancassurance is experiencing a repeated process of rapid and slow development, the emerging of dividends insurance, universal insurance, investment insurance in succession, constant changes in the heated market, product structure have been adjusted. But as an important way that the insurance industry engages in the financial market, more and more issues are exposed in the bank insurance area, such as frequent sales misleading, the missing bancassurance product protection function; serious coessential change among products. These problems have undermined bank insurance becoming a great role in financial markets.This paper will focus on banks, insurance companies, marketing personnel, mutual influence among consumers, analyze existing situation and issues Bancassurance, and make recommendations to insurance industry from the angle of personal financial management. This paper has five sections.The first chapter is introduction, the main topics of this paper to discuss the background, relevant research results, methods of this study, the main structure and other issues.The second chapter focuses on the development of bancassurance and its relationship with the personal finance market. The first section starts discussion of what is banking and insurance, banking and the development process of insurance in the international and domestic market as well as banks and insurance status. The second section discussed the concept of personal finance, and then its relationship with the bank to discuss.Chapter three will focus on the property of "Personal Finance" property, analysis of constraints factors on bancassurance channel affecting market development, and in-depth analysis of interests and motivations among banks, insurance companies, agents, consumers, analysis of the obstacles of bancassurance into the personal financial market. Section one analyzes the impact of the credit risk to the sustainable development of bancassurance; Section two analyze the constraints that cooperation model adds onto the development of personal financial; Section three analyzes the quality of agents; The fourth quarter compares the bancassurance channel and other insurance compare sales channels, summarized the advantages and disadvantages in the personal finance market.Chapter four is to analyze the structures of bancassurance’s products from the prospective of personal finance bank, that is mentioned in the third chapter structure of banking and insurance products to do in-depth analysis, introduced the sale of products, bank insurance status, analyze the impact of the structure of bancassurance products factors, and existing products on the structure of the bank insurance bank insurance market development in the personal finance, put forward views and make optimization recommendations.Chapter V will summarize the advantages and disadvantages of the bancassurance in the development of personal financial, propose to increase high-end market development efforts, and to the constraints listed earlier bank-insurance market in personal finance issues for further development in respect of insurance companies and three banks, and regulators were to make recommendations accordingly.2The paper’s innovationsSince the mid-1990s, the bancassurance in Chian has been developing rapidly. On top of that, theoretical research has also made a lot of achievements. But in reality the vicious competition in commissions, misleading sales and the loose pattern of development in insurance companies and banks did not achieve fundamental change. Even worse is that nearly years of heated competition focus solely on the commission. Annotations on the abnormal development of bank insurance and non-healthy competition leads to several issues, such as low profits, structural imbalances and many other issues. On the other hand, by reviewing the literature, I found that scholars rarely systematically study the impact of the bank insurance products on the personal finance market, and participants in bancassurance are even more reluctant to perform comprehensive analysis. Therefore although scholars have repeatedly emphasized the need for innovation in bancassurance products, they don’t have the consideration for constraints in reality. In particular, they failed to grasp the characteristics of each game amoungmulti-channel bancassurance, leading to theoretical results is difficult to solve practical problems. Finally, scholars have made more suggestions from a macro level, to optimize the bancassurance. Those recommendations are more dependent on the overall market changes or regulatory policy adjustment. While for individual insurance companies or banks, the operability of these recommendations are not strong, which is resulting in the fact that many theories proposed cannot be optimized into bancassurance practices.From a personal finance perspective the paper examined the bancassurance channel. And by viewing insurance products as the core, it focused on a comprehensive analysis of multiple participants. It summarized examples for problems in bancassurance products, studied sales the characteristics of channels. It proposed a direction of development for China’s bancassurance channels. And on this basis, it started from the cooperation model, product mix, agent quality and integrity of employees in four-pronged approaches, set goal to achieve personal finance market development. It made recommendations to insurance companies, banks and regulators, respectively. And it summed up the over-macro problem suggested by past scholars, and tried to suggest improvement from the micro-level, and enhanced the feasibility of strategy proposed in this paper.I hope that this study can have a master plan for bancassurance’s channel, and that future bancassurance industry with the personal finance market flourish and gain new spring growth by leaps and bounds. This paper can also play a role of inspiration and reference to help China’s banking and insurance to be more health, sustainable and stable. However, due to my limited knowledge, some content of this paper will inevitably have shortcomings. I would urge and valuable criticism and advice.