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Cri-report Development Trend And Suggestions Of Chinese Insurance Industry

(cri-report) - During 2006 and 2010, Chinese insurance industry made a remarkable achievement. The number of insurance enterprises increased from 93 to 146; the number of executives of whole Chinese insurance industry developed from 14.5 thousand to 29.4 thousand; the marketing staff increased from 1.56 million to 3.3 million; the number of profession staff, actuary, underwriting, investment and so on increased day by day, providing forceful talents and technical support for better development of the industry, according to China Research and Intelligence. The scale increase of premium incomes of Chinese insurance industry sharply increased. In 2009, the premium incomes reached CNY 1,113.73 billion and CNY 1,450 billion in 2010. In the end of 2010, the total asset of insurance enterprises was CNY 5 trillion, which was 3.3 times than that of 2005.

At present, the demand space of Chinese supplementary life insurance rises. The rapid increase of Chinese economy drives the rise of life value of the Chinese people. The severe lack of social security expands the demand space of supplementary endowment insurance. For example, the compensation standards of Wenzhou rail cars promote the coverage increase of life insurance products.

In the period of "12th Five-Year-Plan", the government proposed the policy of enriching the people and the plan of doubling national incomes, creating the market space for the rapid development of the life insurance business. It also presented the nation's standpoint and policy guidance of increasing and promoting insurance coverage depth and width through relevant policies.

Development Mode of Insurance Industry to be transformed

Profoundly analyzing the prominent contradictions and problems of insurance industry and fully understanding the necessity of the transformation of development modes is the key to the healthy development of the insurance industry. Insurance enterprises should combine the development of insurance industry with the political and economic policies of the government and help the government to create policies; combine the development of the insurance industry with the establishment of harmonious and friendly industry; combine the development of the insurance industry with the happiness of employees' families and overall development of individual's undertakings, trying hard to reform the insurance marketing system.

Benefits of Clients to be the Development Foundation

Considering the increase of inflation and life quality coefficient, insurance salesmen should research the positioning of clients in line with demands of them and equip clients with corresponding sale service staff so as to prevent and avoid the phenomenon that primary salesmen serve high-end clients. It should be avoided that unqualified salesmen take up the business so as to cause misleading behaviors.

In the links of publicity and sale, the publicity of insurance's security function should be highlighted and the insurance consciousness of people should be cultivated. On the basis of doing well in the fore-end and tail-end of insurance business, it should try to design and create the additional value services with the characteristic of humanistic concern in the middle-end of insurance business and overall safeguard the benefit of clients.

Current Reality Problems to Be Noticed

Currently, Chinese insurance industry presents the market scale of the inter coordination of original insurance, reinsurance, insurance intermediaries and insurance asset management, as well as the joint development of Sino-foreign-funded insurance enterprises. By the end of 2010, in domestic China, there were 7 insurance enterprises with the asset of over CNY 100 billion, 5 insurance enterprises with the asset of over CNY 500 billion and one with over CNY 1 trillion. The professional insurance asset management enterprises, health insurance enterprises and endowment insurance enterprises gradually become the important force in the market.

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