Research On Cooperation Between Insurance Companies And Car Dealers

Since China’s reform and open, the development of the insurance industry in China has a good development environment and conditions, especially since China’s accession to the WTO in2001, the insurance industry has continuously improved its domestic law, but also accelerated the pace of international cooperation in our country. October1,2001, the China Insurance Regulatory Commission chose Guangdong province for trial, started the car insurance rate marketization reform. With the car insurance market main body gradually increased, competition is growing in the field of car insurance. The insurance companies with their own marketing channels, taking different marketing tool to capture the insurance market, gain the market share.In the various channels of insurance company, car dealer channel business is an important source of car insurance premium. therefore the insurance company have set up car dealer department of the business, to make greater efforts to promote the growth of car insurance business. However, insurance company choose to use fees exchange for premium, this measures greatly increasing the cost of insurance company, and even the whole industry losses, these unfavorable factors have led to insurance companies’profits transfer to the car dealer’s hand. Insurance companies have to change this condition in marketing strategy, establish self-discipline, control fee payment proportion, change their business philosophy. Meanwhile the China Insurance Regulatory Commission take measures to improved the situation. however, as the car insurance market process continues, new insurance company take part in the auto insurance market, vicious competition between insurance companies and car dealers was began. From here we can see that the cooperation between insurance company and the dealer there are a lot of problems, so what lead to these problems, we should take what kind of measures to deal with this problem.This article consists of five parts. The first chapter is the introduction, the main content of the chapter is elaborating the background and significance, literature review of domestic and foreign insurance companies and car dealers partnership in this area, structural arrangements of this paper, research methods as well as innovative and inadequate. The second chapter describes the definition and the main features of the car dealers’business, a brief review of the cooperation process between China’s insurance companies and car dealers, and then pointed out the course of cooperation problems between insurance companies and car dealer. The third chapter is mainly about using the game theory to analyze the results of its game when working at different stages between insurance companies and car dealers. Before the game analysis, we first introduce some theoretical basis, such as the introduction of asymmetric information theory, principal-agent theory and game theory, these theories as theoretical analysis support the system for the analysis of game theory has laid a solid foundation. By analyzing the results of game theory and the actual situation of combining theory with practice, draw the appropriate conclusions. The fourth chapter describes the status quo of Sichuan branch of PICC partnerships with car dealers, analyze the problem and learn from their experiences to provide for our car dealer channel reform. The fifth chapter, based on the insurance company’s perspective, combined the results of the analysis of game theory with practical experience of Sichuan branch of PICC, propose recommendations to improve the cooperation between the insurance companies and car dealers.