Analysis On Sales Misguidance And Enhancing The Quality Of Sales Team In The Life Insurance

According to overseas research, sales misguidance is rooted in asymmetric information. Foreign scholars believe that the information asymmetry is mainly due to the insured. However, Chinese scholars are more inclined to think that the information asymmetry is due to the insurer. The author has studied the definition, performance and hazards of the sales misguidance. And the author propose governance measures to the misguidance.The background of this study is as follows:1. Improve the overall image of the insurance industry is imminent. At the beginning of2012, the CIRC chairman Xiang Junbo cleared that it was important to improve the image of the insurance industry.2. The development of the life insurance industry.3. Insurance consumer protection. Sales misguidance damages the economic interests of consumers. It makes insurance lose the protection function. This phenomenon has jeopardized the sustainability of the development of the insurance industry.The thesis is organized as follows:Chapter1is about the Introduction of the Thesis. To discuss the research purpose and significance of this paper and to summarize briefly those related literatures on domestic and overseas views.Chapter2is about the definition, performance and the hazards of the sales misguidance. First, the author gives the complete definition of the sales misguidance. According to the Identified guidelines of Sales misguidance behavior developed by the CIRC, we will see the misleading behaviors can be divided into four categories:Ⅰ. Cheating, Ⅱ. Concealing, Ⅲ. Hindering&inducing, Ⅳ. Mis-selling. Finally, the author discusses in detail about the harm of sales misguidance.Chapter3is about the reasons of the sales misguidance. First of all, the author analyzed the information asymmetry in the insurance market. There are two reasons of asymmetric information. The one is Social division of labor and specialization. And the other one is the cost of searching information. Then, the author analyzes the information asymmetry between the insured, the insurer, sales staff and regulators.In chapter3, author believes that the analysis should be carried out from four perspectives. Perspective1is from the insurer. The reasons include:the extensive business philosophy, the lack of internal control mechanism, the product does not meet the market demand, poor management personnel. From the perspective of sales personnel, the reason for sales misguidance includes subjective reasons and objective reasons. The sales men have a lot of pressure and they tend to make mistakes. After that, the author also analyses the regulators, the life insurance industry, life insurance consumers and social media which deprave the sales misguidance in life insurance.Chapter4is about the governance measures of sales misguidance. This section focuses on the treasures made by the main players in the market.Chapter5is about the improvement of the salesmen. This section is a supplement and expansion of the Chapter4. It talked about successful examples happened in Japanese life insurance market, personnel from the life insurance marketing angle analysis, propose how to guard against life insurance sales misleading measures, the most important is how to improve the overall quality of China’s life insurance marketingChapter6is the last chapter of this thesis. The author believes that there are multiparty governance measures on sales misguidance. Although there are series of relevant laws had been promulgated and implemented in our country. And the sales misguidance had been clearly defined. But Rome was not built in a day. The comprehensive remediation for sales misguidance is a long process.