Study On The Marketing Channel Reform Of Insurance Company Of China

After the foundation of the People’s Republic of China, the Chinese insurance industry has grown for over60years. It has experienced the starting stage, discovery stage, stagnant stage and rapid development stage. In1985the State Council of the People’s Republic of China issued its first "insurance law". In1988China insurance regulatory commission was founded directly under the supervision of the state council of the People’s Republic of China. This indicated that the mechanism of segregated supervision of financial institutions was established. Since then, the regulatory bodies for banking, securities, and insurance, shifted their controls from macro-prudential management to micro-prudential management, providing legal support for China’s insurance market compliance. The three largest insurance companies in China, People’s Insurance Company of China, Ping An Insurance Company of China and China Pacific Insurance Company were established shortly afterwards. In the90s, American International Assurance Company officially entered the Chinese market, signaling the globalization of insurance industry. At the end of the20th century, China’s economy began to expand substantially, attracting world attention. In the meantime, domestic insurance companies also experienced rapid expansion including insurance products and overall sales. Ten years after joining the WTO, Chinese market economic system is gradually improving. Foreign insurers are constantly monitoring changes of the insurance market in China, including strengthening of the legal system, improvement of the supervision on insurance activities, changes of the consumer spending trends. Insurance industry faces challenges due to those changes in economic and social environment. As the market becomes more competitive, the original channel marketing model for domestic insurance companies is no longer effective in the current market. In consequence, Pacific Property Insurance Company gradually transforms its marketing strategy from the traditional marketing channel and the main type of marketing channel to more innovative marketing channels. Together with the opening of the insurance market to the world, the entering of the foreign insurance institutions will certainly catalyze the domestic market competition. The update of management experience and the flow of talent will happen at a faster pace. In this new round of competition, it is important to maintain current market share, bring new ideas, strengthen the market operation capability, broaden the insurance marketing channel, and embrace competition with a positive attitude. Let customer demand guide the industry to provide valuable and satisfactory services. Around the customer demand, competition for insurance sources will intensify as well.This thesis reviews and analyzes the marketing channel characteristics, the current situation, outstanding issues and the growth trend of the Pacific Property Insurance Company. In addition, constructive suggestions about transforming and innovating the traditional channel are discussed to help improve the overall quality of the marketing channel, to revamp the social public image and to win the trust of more consumers to some degree. These suggestions will hopefully provide useful guidance on1. helping change the unevenness and low quality of the insurance industry practitioners2. completing the insurance industry honesty construction through the transformation of channel structure and innovation;3. discussing the future development direction of marketing channel based on my own opinions and experience from the work in Pacific Insurance Company, in an effort to contribute to the prosperity and development of the insurance industry.