A Study On Regular Employee System For Life Insurance In Internet Marketing

Life insurance industry in China has a rapid development since 1992, growing with nearly 20% increase every year. By 2013, the national income of life insurance has reached 1,074 billion yuan, of which 56%(609 billion yuan) was created by individual agents. It is estimated that there are almost 2.9 million people working in insurance marketing, and 2.5 million of them are dedicated to life insurance. As a result, individual agency system became the main approach to employment system which led to many problems such as huge brain drain, low productivity, average qualities in salesmen, annual increased customer complaints and so on. All of these problems can be traced to an extended development in the early time, during which high price were either paid by customers or by individual agents. So this dissertation is dedicated to answering the questions about insurance agent system and promoting a regular employee system against the background of Internet marketing.The main purpose in this dissertation is to examine the theory foundation of regular employee system and to study the practical experience against the Internet background. By studying the features and current situation of doing insurance business on the Internet, I displayed the advantages and the disadvantages of online business. Also, I analyzed the traits of Internet insurance products and the causes behind them. As shown in the dissertation, the online business takes a great advantage in cost saving. But it also shows obvious drawbacks when comparing to the offline model. Such drawbacks can be overcome by performing regular employee system. So in order to improve the theory foundation of regular employee system against the Internet background, I clarified the theoretical analysis from Transaction Cost Theory and Outsourcing Economic Theory. With these theories analysis, it showed a justification in organizing the Internet insurance marketing and the regular employee system in a combined way. Besides, I provided a practical trial to demonstrate the possibility in practicing a regular employee system.