A Research On Immediate Difficulties And Countermeasures Of The Life Insurance Personal Marketing System In China

The introduction of the life insurance personal marketing system, makes revolutionary changes in China’s life insurance industry:it subverts the traditional management model of the life insurance marketing, renovates the inherent industry development model of insurance, and promotes the life insurance industry by leap-forward development. For 20 years, China’s life insurance personal marketing system goes through trials and hardships, mixed praise and censure. Its path of development is worth reviewing, its experience is worth summing up, and its future development should make reformations and adjustments. On 21 October 2010, CIRC issued Views on the Reformation and Improvement of The Management System of Insurance Salesmen (hereinafter referred to as the View), which demands all the insurance companies to promote the reformation of the management system of insurance salesmen step by step, while ensuring the basic stability of the existing marketing team, using types of capital investment in setting up a large insurance agency or marketing company, and exploring the establishment of new insurance marketing system to take over the current model, In this situation, the improvement of the existing management system of life insurance salesmen and future development trends, has become an important research topic. With the perspective, this paper analyses China’s life insurance personal marketing system, within its course of development, influence, problems and reasons; meanwhile, introduces and analyzes the life insurance marketing model in the United States, Britain and Japan; makes more comprehensive and in-depth comparative study of several management models mentioned in the View and discusses how to optimize the tax policy of life insurance salesmen. Hope this paper can provide a reference for the development and improvement of China’s life insurance personal marketing system and promote the sustainable and healthy development of China’s life insurance marketing enterprise.This paper includes a total of six parts, and the main contents of all parts are as follows:The first part makes an introduction of the research background, purpose and meaning of this paper, and brief introduction and comments on domestic and foreign literature on the life insurance personal marketing system.The second part is a general theoretical’ analysis of life insurance personal marketing system. First, related presentations of the basic concepts and features of life insurance marketing. Life insurance marketing has the branch of brpad sense and narrow sense, and this paper is based on the analysis of the narrow sense of the life insurance marketing. China has four typical life insurance marketing systems, due to special nature of insurance products, companies mainly use a face to face marketing services, that is life insurance personal marketing system. Second, a more detailed analysis of life insurance personal marketing system. Life insurance personal marketing system is a system of individual agents in the agent system, is a management system that life insurance companies use to management the individual agent recruited for selling insurance products. In the practice of selling insurance, life insurance salesmen is basically the same as the life insurance individual agent. Life insurance companies and life insurance salesmen are in an agency relationship, and they regulate and restrain the rights and obligations of both parties according to the agency contract they signed. However, the management of life insurance of personal marketing is more complex, and it’s difficult for efficient control of salesmen only by virtue of the agency contract. In practice, various of life insurance companies have developed Insurance Salesmen Management Approach (referred to as Basic Law), and manage salesmen in accordance with this approach.The third part, the research of China’s life insurance personal marketing system development status and immediate difficulties. Firstly, the paper review the course of development of China’s life insurance personal marketing system, focus on the characteristics of the development of China’s life insurance personal marketing system, and consider that the human scale of life insurance personal marketing channels and. premium volume has been showing steady growth, and personal marketing has and will continue to play a tremendous role in promoting the development of China’s life insurance industry. Secondly, it analyzes the problems and the root causes of China’s life insurance personal marketing system, consider that the most fundamental problems hindering development, is the indeterminacy of the legal status of life insurance salesmen, the confusion of the management system and the increasing economic burden of life insurance salesmen due to the unreasonable taxes.The fourth part, the research of international comparison of foreign life insurance marketing and their experience. The paper mainly analyzes the U.S, UK and Japan’s life insurance marketing models and their characteristics. Agent system in the United States presents a diversified development trend, that is, dedicated agents gradually change to an independent agent which can be a sales agent with a number of companies’ products. The characteristics of the British insurance marketing is making the insurance broker system as the core, emphasizing on service to the insured party; at the same time, the agent of the life insurance field occupies an important position. In Japan, there is a small number of insurance companies, and life insurance owners sell insurance products by field operations staff. Any selection and operation of the system depends on its level of economic development, social background, history, culture and other factors. The inspiration of getting through the analysis of the three countries’ life insurance marketing model characteristics is:life insurance personal agent system may be more suitable for the current situation in China, but need to be improved, in particular the need to reform the management system, improve the training system, the optimization of tax policy and so on.The fifth part, the research of the reform of China’s life insurance personal marketing management. First, the paper discusses the development direction of the reformation of management system of China’s life insurance salesmen, and makes a comparative study on several alternative systems, such as employee system, exclusive agent system and the system of shareholders. Second, the paper also studies the supporting policies to strengthen the management of life insurance salesmen, and considers that we should explore the establishment of life insurance salesmen management system that field staff system and personal agent system can coexist, break the barriers of the back office and field, and strengthen mechanism construction of the training and assessment of life insurance salesmen, etc.The sixth part is the study of the optimization of the tax policy of life insurance individual marketers. The paper makes a brief overview of the current situation of China’s tax policy of life insurance salesmen, considering that personal marketing staff is currently facing a double tax burden to pay the sales tax and personal income tax, further analyzing the current problems of the personal income tax and sales tax system, recommending that life insurance salesmen pay personal tax regarding personal income as wages and salaries, and abolishing sales tax as well.The main characteristics and innovations of this paper:First is on the study of the direction reformation and model selection of China’s life insurance personal marketing management system. This paper does a more comprehensive and in-depth comparative study on several future management mode of life insurance salesmen by using both typical cases and theoretical analysis, which does a good combination of theory and practice. The second, the paper specifically analyzes the tax issue of the special group of life individual marketers, considering that while the tax law is not perfect in China, it should be recommended that life insurance salesmen pay personal tax regarding personal income as wages and salaries, in order to avoid double taxation. This is of certain reference significance to the optimization of the tax policies of China’s life insurance salesmen.