Optimization Study Of Broker Channel Management In Y Property Insurance Company Suzhou Branch

With the fast development of China's economy,citizen's living condition and education level have had great improvement.The environment for insurance industry is getting better and better.The risen of people's risk consciousness contributes to the strong development of insurance industry,especially the property insurance.In the Chinese market,insurance industry has great potential to dig the extent and depth of the industry.On account of the various products,complicated figures and lots of expertise requirement,most clients especially those of big scale,prefer to ask insurance brokers for helping them to pick suitable insurance company for quotation.Therefore,as to non-car insurance department in property insurance company,insurance broker companies have been one of the most important channels to them.As to Y Company Suzhou branch,the study objective in this essay,broker channel is the main income of its non-car insurance turnover.Although the company has outstanding performance in property insurance filed,its heavy dependence on the broker channel has become a huge problem which cannot be overlooked anymore.As the business scale is becoming larger and larger as well as the market competition is becoming fiercer and fiercer,the problems caused by the poor channel management are rising to the surface.Y Company,as the top three companies at home,with the long history in cooperation with broker companies,the problems they encounter are very typical.The optimization study of broker channel management not only has profound meaning to solve the contradiction and problems the company has with the broker channels,but also provides suggestions to other insurance company in collaborating with their channels.In this paper,the optimization study aims to solve two channel management problems.One is to optimize the allocation of inner resource so as to reduce the resource waste of the company;the other one is to balance the relationships between Y Property Company and its broker channels to get rid of the negative results caused by the heavy dependence on channels.To solve these problems,this paper adopted one new concept “ Channel Client” which is suitable for companies like Y who seldom attaches the final consumers but regard their channels as important as consumers instead.I will take advantage of Activity Based Classification,one of the theories in CRM,to clarify and differ various channels and meanwhile make use of IDIC model to do the further allocation between the sales teams and broker channels so as to solve the waste of inner resource problem.Besides,this thesis is based on the Power Dependence Theory,to analyze the current relations between the insurer and brokers,making adjustment strategy to solve the problem.Since neither of the theories taken in this thesis is applied originally in the insurance industry,this thesis also helps to check whether CRM theories and channel management theory can be practically used in the insurance channel management.