A Study Of The Business Model Of Bancassurance In Chinese Commercial Bank

With the development of financial industry competition and financial integration, thepermeable trend of Banking, security and insurance is much more obvious.Because of thefinancial liberalization, our country gives birth to the bancassurance and it grows rapidly.Now the bancssurance is one indispensable part of our native financial products. At present,several large commercial Banks in China have set up their own insurance subsidiaries;someone even set the comprehensive financial group.Firstly the article gives out the definition and the reviews of bancssurance and thecooperation mode of it. Secondly, the article gives out a preliminary inspection, whichincludes the business environment of some large commercial Banks and the process ofbancssurance. Thirdly, the article divide the Bank-insurance product’s life cycle into fourparts, they are Product Development, Propagandizing and Popularizing, Sales and Settlementof insurance claim. In the article we call these four parts as Level1dimension. After that, thearticle uses expert scoring method to rank the four parts’ contribution degree in theBank-insurance product’s life cycle. Also, the article select out some factors to represent eachpart, we call these factors as Level2dimension.From the analysis, we can see that the Sales is most important factor in the cooperationbetween bank and insurance. The importance of Product Development is on the second place.The Propagandizing and Popularizing is one the third place. The Settlement of insuranceclaim is the least important. The Level2dimension analysis shows that the Sales IncentiveMechanism is most in Sales. The importance ranking then is Sales Staff Professional Quality,the Actual Sales Channels, the Publicity Channels, and the Branding Strategy. The importanceof Level2dimension of Settlement of insurance claim is inconspicuous.Learning from foreign countries’ experience of bancssurance’s development, ourcountry’s commercial bank should choose an appropriate pattern according to oneself feature.For big commercial banks, the joint venture company model is much more suitable. In orderto the bancssurance’s Sustainable and healthy development, Large and medium-sizedcommercial Banks can try to adjust business process and organizational structure. They can also exploit the Actual Sales Channels, enhance the Staff Professional Quality and payattention to the product development, to reach their aim.