Marketing Strategy Of China’s Bank Insurance In New Environment

Since the appearance of bank insurance, China’s economic environment, policy environment is often changed. China Banking Regulatory Commission issued a notice on November 2010. That is a notice of further strengthening the bank insurance’s compliance and internal control on sales activities. Insurance Company’s staff sale insurance in a bank is prohibited by that notice and each bank can’t cooperation with more than three insurance companies. These regulations post a new challenge to the rapid developing bank insurance. From the next twelve months’ sales data, we can see the sales volume of individual insurance distribution and group insurance distribution and other distribution channel except bank insurance distribution have significant increase while bank insurance sales volume are significant slowdown of the decreasing trend. This article’s writing was based on management analysis tools and analyzed the macro environment and micro environmental faced by the bank insurance, identified the problems of the bank insurance may have to solve in the new environment, and made some short-term recommendation and long-term recommendation on these problems.First, the article studied the new macro-environment facing by the bank insurance. To draw valid conclusions, I started from the four aspects of the macro-environment:policy, economy, technology and population. From the policy aspect, The Bureau of the Commissioner of Banking and Insurance Regulatory Commission’s regulatory policies are more and more standardized, and certain restrictions are used in all aspects of bank insurance, and policy changes quickly. From economic aspect, in the experience of the financial crisis in 2008, the global economy then falls back into a new round of downturn. Although the global economy is in the stabilization of the recovery trend, but the recovery is very uncertain. From the population aspect, according to the communique of the sixth national census data released by National Bureau of Statistics, the data show that China’s population of 1.339 billion, and the population of 15 years old or above was significant increased and the population under the age of 15 was significantly reduced. These figures illustrate working-age population in China increased, especially in the 15 to 59 years old people. From technical aspect, science and technology are developing very fast and their effect on bank insurance can’t be ignored.Second, the article studied the new microenvironment facing by the bank insurance by using the Competitive Strategy which included the bargaining power of suppliers, bargaining power of buyers, the ability of potential competitors, the alternatives alternative capacity, the industry competitors. The insurance industry is highly competitive especially in the bank insurance channel. Under the new environment, major insurance company’s sales fell significantly. Bank insurance’s alternatives are including financial products issued by banks, financial products issued by insurance companies (insurance), financial products issued by the fund company (the Fund), the financial products issued by the securities companies, and other bank sales of investment products. Those financial products are all sold in bank. The scale of client assets won’t increase in short time, so competition, between those products are unavoidable.Through the analysis on macro and micro environment facing by the bank insurance of the above, the article clarified the bank insurance’s problems on organizational structure, marketing and sales.In organizational structure respect, too much staff for the bank insurance organization is not only a great waste of resources, but also increased the company’s unnecessary expenditure. To analyze the market and sales of bank insurance, the article use the 4R marketing theory to analyze the association, relationship, response, and return of bank insurance. And through the theory the study found the following problems of bank insurance: insurance company has a weak effect on their customer and the attractiveness of product revenue needs to be improved together with the relevance of target consumers, which has been declining in recent years. Under the new environment, the relationship between insurance companies and customers are loose.Considered to solve those problems faced by bank insurance identified in this article, I propose to solve them step by step. In the short-term, first of all is to control the cost of agency fees from insurance companies. An effective regulatory agency fees would avoid blindly push agency fees to obtain the cooperation with banks. Secondly, in the current environment, the priority task is to ensure that bank insurance’s customers are get the appropriate advice and, ultimately, be able to purchase insurance products for their needs match their economic situation. If the insurance company wants to be unique in the fierce market competition, insurance companies need to focus on the insurance needs of bank customers. Thirdly, opened up a variety of financial institutions channel, weaken the dominant position of the bank. Adjust the inappropriate structure of bank insurance organizations, with the corresponding changes to the staffing system. The insurance companies need to firmly grasp marketing, eliminate the phenomenon of bank insurance misleading, and establish consumer confidence; and do more bank sales staff training. Understanding of customer needs and strictly avoid the consumer misleading so as to seize the consumer demand. Attention to develop product to improve product value, and promote the bank insurance sales to obtain a reasonable return, and maintain a close relationship with the banks and their customers. Also do improve service quality, be prompt and have effective feedback. These short-term recommendations aimed at making insurance companies adjusting to the new environment, and to avoid adverse effects. In the long-term, we should build bank insurance’s norms sales, seek the pattern of specialization of the bank insurance. That pattern of specialization includes four aspects:First, specialized operators, which means professional specialized operators or the form of company system. Second, the reform of the bank insurance forms must have a form of specialization, such as specialized bank and insurance company form. Third, professional practitioners, which means that professional bank insurance practitioners, specialized in bank insurance products from design to sales and to after-sales service; Last, professional services, bank insurance sales through bank channel should be take care from the pre-and after-sales service. Professional services would provide consumers with greatest possible convenience. Another long term solution is the cooperation equity of insurance companies, banks and security companies so as to establish diversified bank insurance sales terminal. If banks take shares of insurance companies, insurance companies can use the channel resources of the bank, such as customer resources, financial backing and management ability, to promote the insurance company developments. If insurance companies take shares in banks, insurance companies may expand its financial platform to promote the business, and even promote their direction of development towards a diversified financial group. In addition, as one of the insurance intermediaries, insurance sales and service company, is a new force in life insurance market.