Constraint System Psychological Contract Perspective Bancassurance Financial Adviser Incentives

Bank insurance is a new kind of insurance marketing methods which sales insurance products in banks. Mainly it has three development stages:in the first stage insurance companies provide products while banks provide sales channel; in the second stage insurance companies and banks are strategic partners and banks share profit form insurance business in addition to handling charges; in the third stage banks become share holders and involve in management of insurance company. In most developed countries bank insurance stepped to the third stage while China still stay in the first stage. Since unveil of "Notifications on Further Strengthening Commercial Bank Legally Sell and Insurance Business Risk Management" Chinese bank insurance is facing the difficulty of having to reform agent sale mode. Many insurance companies are trying to attract banks investment, standardize bank insurance products so as to develop the bank insurance business.X company was established under this economic environment. Set up by a global famous insurance group, X company got a famous business bank as a share holder. Thanks to the bank’s dense network, the bank insurance business developed rapidly. With the change of insurance sale model, responsibilities of financial advisors adjusted from site sale to training and after-sales service. X company developed fast and financial advisors’ performance bonus raise much higher than market average. Unfortunately, financial advisor’s separation rate keeps a high level. So, under new model how to motivate financial advisor’s working enthusiasm and loyalty are problems urgently need to solve.In this article, X company’s financial advisor’s psychological contract is revealed by questionnaire survey. Academic world accepted questionnaire is adopted, with SPSS classification and regression to collected date so as to find out significant influencing factors to working enthusiasm and loyalty. Analysis conclusion is verified through interview. Finally, using the research results, I analysis the shortages of X company incentive and control mechanism and forward the corresponding suggestions for improvement.Through psychological contract, I provide in this article provide a new study population for psychological world and a new method to solve principal-agent problem between financial advisors and insurance company.