Analysis of insurance market.
Analysis on the present situation and development trend of China insurance market
Since the reform and opening up, as a sunrise industry in China, the insurance industry has made remarkable achievements, but compared with the overall situation of the insurance industry in the world, the development level of China's insurance industry is still low. Based on personal practical work experience, the author analyzes the present situation of China's insurance industry and puts forward the future development trend of the insurance market for reference.
Keywords: insurance market; Insurance industry; development trends
Looking at the development of China's insurance industry in the past 20 years, we can clearly see that China's insurance industry has developed rapidly and achieved remarkable results. Especially with the arrival of the population window, people's concept of investment and financial management has been continuously strengthened, and the insurance industry has attracted more and more attention. How to do a good job in the development of China's insurance industry and promote greater achievements in the insurance market has become the focus of the current national economic development. Based on personal practical work experience, the author analyzes the present situation and future development trend of China's insurance industry in order to provide useful reference for the development of China's insurance market.
First, the status quo of the insurance industry in China
Since 1980 China resumed its insurance business, the insurance industry in China has made remarkable achievements, and the insurance market has gradually shown a good new pattern of competition and development among many insurance companies. Especially 1995, since the implementation of People's Republic of China (PRC) Insurance Law, indicates that China's insurance industry has entered an important stage of legal compliance and legal operation. Under the management system of insurance law, many insurance companies in China have continuously improved their internal governance structure and improved their economic management level, and the insurance industry has shown a sustained, rapid and healthy development trend. Then, in order to meet the practical needs of China's economic development and its accession to the WTO, China has successively promulgated the Regulations on the Administration of Foreign-funded Insurance Companies, the Regulations on the Administration of Solvency Limits and Supervision Indicators of Insurance Companies, and other relevant laws and regulations, so that China's insurance market is in line with international standards, a solvency early warning index system has been established, and an insurance system framework that conforms to China's basic national conditions is being initially established. It can be said that so far, we have established thousands of insurance companies and added a number of insurance branches, which not only further innovated the specialized economy and organizational form of insurance companies in China to a great extent, but also promoted the intentional competition in the market and continuously improved the development level of China's insurance market.
Although China's insurance industry has made remarkable achievements, compared with developed countries, the overall development of China's insurance market is still relatively weak and there is a big gap. Further analysis of the gap and finding an effective breakthrough to solve the problem will be the foundation to promote the development of insurance industry in China.
First, the development scale of China's insurance industry is far from that of developed countries. The number of insurance companies, total premium income and total assets in China are relatively small. Scale is the basic symbol of the development level of industries and enterprises. From various statistics, we should see that the insurance industry in China is still in its infancy.
Second, compared with developed countries, China's insurance industry still has a large production bureau in terms of insurance depth and insurance density. The depth of insurance is the ratio of annual premium income to GDP in the same period in a country or region. At present, the insurance depth of the insurance market in developed countries has reached about 12%. The insurance depth in China is 2.8%. The insurance density index refers to the per capita premium. Developed countries reached 2000-3000 dollars, and Japan reached 4600 dollars. In China, the per capita premium is only 127.7 yuan, about 15 US dollars, while in the United States, it is 1.600 US dollars. The per capita premium is 107 times that of China and 307 times that of Japanese. Insurance depth and insurance density are important indicators to measure the development level of insurance industry. It can be seen that there is still a big gap between China and developed countries in terms of insurance depth and insurance density;
Third, China people's awareness of the insurance industry is generally lower than that of developed countries. Judging from people's understanding of China's insurance industry, the concept of insurance is still very poor, and people do not know enough about the role of insurance in stabilizing social economy and safeguarding personal interests. Few individuals take the initiative to buy insurance. The whole insurance industry, especially life insurance, is a buyer's market, forcing millions of insurance salesmen to run around and sell insurance products.
Second, the development trend of China insurance market
Looking at the development trend of China's insurance market in recent 20 years, we can clearly see that the insurance industry, as a sunrise enterprise in China, is being further promoted with the continuous development and reform of China's economic market, and China's insurance market is also facing a huge transformation. Therefore, according to China's basic national conditions and the development of the insurance market, the author predicts that China's insurance companies will develop in the direction of mixed ownership, specialization of economic business and maturity of insurance products for a long time to come, as follows:
First, in the future, China's insurance companies will gradually develop into mixed ownership characterized by modern shares, and insurance companies will become real market competitors.
Second, the business of China's insurance companies will continue to develop in the direction of specialization in the future, especially with the continuous reform of the business system of China's insurance companies, export credit insurance, agricultural insurance and other policy insurance businesses are bound to be separated from commercial insurance companies, and the state will set up corresponding policy insurance companies to carry out special business development, thus making China's insurance market develop better.
Third, the quality of insurance products in China will be more mature in the future. Character refers to the brand, price and service of a product. As far as the quality of insurance products is concerned, it not only includes the functions of interest protection or investment, savings or product portfolio, but also includes its price level and service level. Especially looking at the development and contribution of insurance industry in China's national economy in recent years, we can see that with the deepening of insurance function, insurance industry plays a very important role in the whole economic market. For the government, insurance can be used as a means of market economy to assist social management, reduce management costs and improve management efficiency. As an effective means of risk management, insurance can play an important role in improving the management level of enterprises. For individuals and families, people's protection in medical care, insurance and education needs insurance to solve more. Therefore, in order to actively carry out China's insurance business, we must further promote the mature development of China's insurance products, and then make China's domestic insurance companies invincible in the competition with foreign insurance companies.
Third, the conclusion
To sum up, the author of this paper has made a superficial discussion on the present situation and development trend of the insurance market, which also makes us more clearly realize that with the continuous improvement and rapid development of China's economic market, although the insurance industry has not developed for a long time in China, it has achieved very excellent results. Although there is still a certain gap compared with developed countries, it is also maturing. Therefore, in order to further promote the development of China's insurance industry and improve the insurance market, we must seize the opportunity, deepen the reform, and absorb the advanced experience of developed countries to make the insurance industry invincible.
References:
[1] Zhang Chen. Reflections on the current situation of China's insurance market [J]. China's collective economy.2011(22)
[2] Li Zhan. Supply and demand analysis of China insurance market [J]. China Securities and Futures .2009 (06)
[3] Jin Jingxian. Research on the Development Status and Trend of Insurance Industry in China [J]. China Market.2010 (22)
Insurance Market Analysis Part II
Discussion on market competition of insurance enterprises
Abstract: Competition is a contest between enterprises in terms of strength, talents, technology, commodity quality and price. This requires all insurance companies to face it correctly and be brave in competition. At present, the overall competition in China's insurance industry has been widespread, but there is also a certain degree of monopoly in a certain region or an enterprise. However, under the general effect of competition law, this monopoly can only be temporary. If the monopolist can't adapt to the reality, gradually develop and improve himself and enhance his market competitiveness, then in the end, not only the monopoly situation will be broken, but also it will be eliminated.
Keywords: insurance enterprises; market competition
First, establish a new mechanism to adapt to market development and challenges. These mechanisms include enterprise mechanism, employment mechanism, distribution mechanism, service mechanism, management mechanism and so on. As a grass-roots company, we should make full use of existing policies and make our mechanism adapt to the market to the maximum extent within our ability. It should be said that now that the policy is basically in place, it depends on how to understand and implement it. On this issue, the management of the company must first understand the spirit, have the ability to innovate, have the strength to reform, and have a sense of urgency. With the intensification of market competition, a large number of talents flow, and the change of market share is conceivable. The key to the company's future survival and development is whether it can have a set of mechanism to adapt to the market mechanism. Based on the principle of simplification, high efficiency and modernization, all grass-roots companies should boldly carry out reforms, reorganize their organizational structures, aim at the future development prospects, and formulate feasible company development plans to make them more suitable for the needs of market development.
Second, carry out scientific market segmentation. As a financial service industry that provides risk protection and wealth management services to specific groups of people, the differences in core competitiveness of enterprises are directly reflected in their core customer groups with different characteristics. At the beginning of its establishment, insurance companies usually adopt expansionary business strategies to quickly occupy market share and gain living space. After a period of time, a certain customer base has been formed, but there is often no significant similarity between them, and there is no obvious difference compared with competitors' customers, which means that insurance companies cannot easily find out where the potential bigger market is from existing customers. Nevertheless, in the process of formulating development strategy and business positioning, insurance companies should base themselves on the existing market, find their loyal customers, find potential target customers by analyzing their similarities and differences, and then develop corresponding products and formulate and implement targeted marketing strategies. The basic criteria of insurance market segmentation include different regions, different types of insurance products, different marketing channels and people with different characteristics, and the characteristics of people can be divided into demographic characteristics, behavioral psychological characteristics and lifestyle characteristics. Simple market segmentation can be carried out according to one of these standards, which has the advantage that market segmentation can be easily identified. However, the market segmentation results obtained through a single variable often cannot accurately reflect the demand differences between market segments, nor can they outline the comprehensive characteristics of different consumer groups. Especially for a specific insurance company, any simple standard can not represent the characteristics of its target customers, that is, the differences with competitors. In other words, the ideal market segmentation should be a comprehensive analysis of the behavior, psychology, demographics and other factors of consumers in the insurance market, so as to divide the whole market into several typical market segments. It is true that it is not an easy task to choose the appropriate variables for effective market segmentation. However, when the insurance market in China has developed to this day, and the transformation of the whole industry is imperative, the problem we are facing is no longer whether to subdivide the market, but how to scientifically divide the potential market into different types that have practical significance for business decisions and market activities. This is also an inevitable choice for insurance companies to achieve and improve their core competitiveness and remain invincible in the future market competition.
Third, improve the credibility of insurance companies. Accidents and disasters are independent of people's will, and some are inevitable, which is the basis for the existence and development of the insurance industry. The basic function of insurance is to make economic compensation. With the improvement of people's living standards, the commodity market has formed a buying and selling market, and consumers will not only consider the price, but also pay attention to the quality of goods. The quality of insurance products is reflected in the after-sales service provided by the insurance company to the insured, and the most important thing is whether the insurance company timely and accurately surveys, determines losses and pays compensation when disasters and accidents occur. ? Win the price and give up the service? The truth profoundly shows that price competition can only occupy the market temporarily, and quality service can occupy the market for a long time. This is the law of survival of the fittest in the insurance market competition.
Fourth, establish a talent mechanism suitable for market demand. Talent is the foundation of the company's survival and development, and it is also the main object of competition. The existing management talents, technical talents and business talents of grass-roots companies are the company's precious wealth, and they are also the main targets for some foreign companies and joint ventures to enter the China market. We should attach importance to this wealth and make rational use of it. Although some of our existing talents are not perfect and need to be improved, as long as we can make the best use of them, it is far better than talents becoming our competitors. It is necessary to establish a step-by-step mechanism for talent recruitment, training, reserve and use. From now on, we should not only pay attention to the cultivation and improvement of existing talents, but also recruit and employ a group of high-quality management talents in a planned and purposeful way and put them in suitable positions. It is necessary to gradually use a group of talents, reserve a group of talents, train a group of talents, and establish a stepped talent management model of the company. At present, grass-roots companies should try their best to improve the treatment of talents, improve the working and living conditions of on-the-job employees, create an entrepreneurial environment that is connected with the heart and connected with the market, and strive to not only retain talents, but also attract more talents to serve the company's development.
Fifth, strengthen risk management. The insurance industry itself has special operational risks, and controlling and preventing risks is particularly important for the sustained and healthy development of insurance companies. Advanced information technology will undoubtedly help insurance companies to strengthen risk management. In today's society, information technology has been integrated into all fields of enterprise production, operation and management, and the effective use of information technology, safety management and value promotion have become important issues that enterprises can not ignore. The Sarbanes-Oxley Act of the United States and the Internal Control Guidelines of the China Insurance Regulatory Commission respectively put forward clear requirements for the audit of insurance enterprise information systems. At present, the internal control of information technology is still a relatively weak link for domestic insurance companies. Therefore, the internal audit department of information technology plays a vital role in assisting enterprises to establish and improve the information technology control system. Audit outsourcing is an effective mechanism under the current situation. Through audit outsourcing, insurance companies can quickly solve the problem of insufficient professional audit ability, and also let enterprises learn the working methods of external audit, thus improving the level of internal auditors. A perfect internal control system helps the company to reduce the internal and external risks it faces in its operation, including reducing the probability and impact of risks. A sound internal control system includes establishing a corporate governance structure that conforms to laws and regulations, clarifying the internal control responsibilities of the board of directors, the board of supervisors and the management, formulating and resolutely implementing various internal control measures in view of risks and internal control objectives, conducting regular risk assessments, confirming whether the current internal control system controls risks within the risk range of the management, and making necessary adjustments and improvements to the internal control system.
Sixth, improve service quality and establish a new image of the company. Company service is not only for customers, but also for the whole society. Service work is not only done by front-line employees, but also by all employees. In the past, we often paid attention to the improvement of the service level of front-line employees, while ignoring the image and social influence of managers and other employees. To improve the service quality, it is necessary to improve and unify the overall service level of all employees, including the general manager and logistics sanitation cleaners, and improve the moral standards of employees. Improve the service level and comprehensive quality of employees, and establish the company image; The company's own image is tall and accepted by many customers, and the company has a foothold and development foundation in the market.
Main references:
Mu Zi. Competition without winners [J]. China Insurance, 2002+00.
[2] Bi Keguang. Competition also needs cooperation [J]. China Insurance, 2002+00.