Research On The Concurrent-business Insurance Of The Commercial Bank

The bank and the insurance company started to cooperate by the bank selling theinsurance as an agent since1990s’. After the Ping’an Life Insurance designed the firstinsurance specific for the bank, the cooperation of bank and insurance company havedeveloped very well and the bank has been the main channel for the sale of the lifeinsurance. However many problems arise as the bloom of such cooperation, such asthe disorder of the main part of the contract, the unbalance of the kinds the insurancesold by the bank, the misleading of the salesperson in bank and etc.Recent researches mainly focus on the legal and economic relationship of bankand insurance company and hope to regulate the concurrent-business insurance of thecommercial band by balancing the relationship between the bank and insurancecompany and making them a community of interests.This paper tries to start from the perspective of the policy holder andconcentrates on the misleading of the salesperson of the bank which is the most caringissue of the policy holder, in order to find the reasons and results of such act.Apart from the preface and conclusion, this paper consists of four chapters,whose contents are as follows:The first chapter is the legal analysis of the act of the bank selling the insuranceas an agent. This chapter defines the legal nature of the act of the bank sellinginsurance, and distinguishes it from the economic concept “bancassurance”. The legal relation involves both the outside three-part relationship among the insurancecompany, bank and the policy holder, and the inner relationship between the bank andits employees. So the concurrent-business insurance has the characters as follows: thedual nature of the market entry, the dual nature of the grant of the agency and theconvenience of the selling procedure.The second chapter compares the background of the bacassurance between Chinaand foreign countries, and then concludes that the foreign bacassurance came intobeing when the traditional life insurance market had been over-competed and thefinance started to be mixed operated. In current market, there is a great demand fortraditional life insurance. The participating insurance, the investment with insuranceand the universal insurance that are now on sale by the bank is so complex thatthey’re beyond the capacity of the employees of the bank. And the existing regulationof the qualification for the agent and its employees can’t meet the requirement of thecomplex kinds of insurance.The third chapter tries to prove that the lack of capacity of the bank’s qualifiedemployees cause the misleading of insurance selling. What’s more, the unqualifiedemployees who are participating in the insurance selling are the inner reason for themisleading, and what they have done disturbs the relationship and the order of theconcurrent-business insurance market.The last chapter makes recommendations for the development of theconcurrent-business insurance in two angles: the existing system and the futuredevelopment. Under the current system we can enrich the kinds of insurance sold bybank, improve the regulation of the qualification of the agent and its individual agent,and mend the inner management of the bank. In financial mixed conditions, we can gofurther to the mode of bancassurance.