Characteristics of insurance marketing

Abstract: With the development of market economy, China's insurance market has ushered in a good opportunity for development, but the threats and challenges also come as expected. This paper analyzes and discusses the current marketing status quo of the insurance market, aiming to find out effective strategies to comprehensively improve the marketing management level of China's insurance market, and fundamentally improve the overall competitiveness of China's insurance industry.

Keywords: insurance market; status quo; development prospect

1 Basic meaning and importance of insurance marketing

Insurance marketing as a marketing strategy and means, it starts and ends with the insurance market, which takes the prospective customers of the target market as its object. Insurance marketing as an overarching activity, it meets the various risk insurance needs and desires of the insurance market, it is not only to promote insurance commodities to obtain economic benefits, but also to enhance the market competitiveness of the insurance industry, and to establish a good reputation and image for the insurance industry. Insurance marketing can be divided into the following categories: analysis of the insurance marketing environment, the development of insurance marketing strategy, the management of insurance marketing and the selection of insurance marketing objectives. The basic strategy of insurance marketing is also reflected in the following aspects: (a) insurance marketing always adheres to the fundamental interests of customers as the starting point and value chain; (b) insurance company's commodities, service means and values are all its marketing carriers; (c) insurance marketing in order to achieve long-term performance results, usually based on relationships and networks; (d) insurance marketing is responsible for the analysis of the target market, which controls the marketing process and the implementation of marketing objectives. It is in control of the marketing process and implementation of the marketing plan, will continue to meet the needs of the insurance company to obtain economic benefits.

Marketing is a more critical link in the market economy, which can effectively connect insurance enterprises and social needs, and plays a vital role in the long-term stable development of China's insurance industry. Its role is mainly manifested in the following aspects: First, the development of China's insurance market needs to be based on marketing. In the era of planned economy, China's insurance industry is in a monopoly position, institutions and organizations, enterprises and public institutions as the main insurance object, for the family or individual insurance is less, the way of insurance is either rely on administrative intervention, or compulsory insurance. In recent years, China's socialist system has been improving and developing, and the demand for insurance has shown a diversified trend, and the formulation of marketing strategies is mainly based on the needs of insured customers. It can be seen that the traditional marketing means and methods can no longer meet the needs of market development, and it is extremely important and urgent to vigorously develop marketing; secondly, the development of marketing can invariably promote the formation of people's insurance awareness. China's large population and wide geographical distribution, rapid economic development, the insurance market contains huge potential, but people's insurance awareness is generally weak, expanding the scale of the insurance market is a long way to go. At present, China's insurance market continues to introduce the concept of marketing, which has a strong service, and marketing methods are becoming more and more diversified, which can promote the enhancement of people's purchasing power. Nowadays, the market competition is becoming increasingly fierce, the main insurance companies in order to expand their business, occupy a broader market, win a good reputation and image, we must focus on the innovation of marketing methods and content, and constantly improve the consumer's awareness of insurance and insurance concepts, and fully understand the significance of the insurance for their own development, expanding the demand for the insurance market; thirdly, the introduction of the concept of marketing can optimize the management of insurance companies, and constantly improve the efficiency of the service. Thirdly, the introduction of marketing concepts can optimize the management of insurance companies and continuously improve service efficiency. In the increasingly fierce market competition, insurance companies to grasp the strategic advantage, to obtain better economic benefits, we must optimize the management mode, with a forward-looking vision of the market demand, in the choice of insurance and promotion to maintain a rigorous attitude, while constantly improve the efficiency and quality of service, fully meet customer needs, enhance consumer satisfaction, and promote the long-term stable development of insurance enterprises. [1]

2 The current situation of China's insurance market

The insurance industry in China has a relatively short period of time, but the speed and scale of its development is far beyond people's imagination. Since the reform and opening up, China's insurance market has made remarkable achievements.

2.1Healthy and stable development of the insurance industry to meet the development needs of the market economy

Since the reform and opening up, China's insurance industry has made remarkable achievements, playing a vital role in economic construction. 2006, China's insurance companies paid 5.5 billion yuan of claims for life insurance, while paying out a total of 25.9 billion yuan of claims for property insurance, which can to a certain extent stabilize the social order

2.2 The insurance market mechanism is constantly improving

The insurance market continues to broaden and improve the access mechanism, giving rise to the birth of new market players. The traditional insurance market access threshold is relatively high, to a certain extent, resulting in the formation of monopoly in the insurance market, hindering the long-term and stable development of the insurance industry. 2004, China continues to adjust the development strategy of the insurance industry, gradually relaxing the industry access mechanism, giving birth to the emergence of new insurance companies, and the construction of specialized insurance companies were approved more historical breakthroughs, which fundamentally breaks the monopoly of insurance companies. Organizational form and specialization of the economy.

2.3 The increasing number of market players, the initial formation of a number of insurance companies *** with the competition of the new pattern

At present, the insurance market initially changed the traditional financing methods, some insurance companies to broaden the marketing channels, and continue to absorb the private capital and foreign capital, so that the shareholding structure has been increasingly optimized to a certain degree to improve the level of management of insurance companies. In some areas, foreign insurance companies have also been gradually introduced and penetrated into the insurance industry, which has formed a benign competitive environment with domestic insurance companies, and the insurance industry has seen a good development trend of going hand in hand.

2.4 Problems in the insurance industry

In recent years, China's insurance market has achieved long-term development, and plays a pivotal role in promoting the development of the market economy, but its development process has also given rise to a series of contradictions and shortcomings, which have an extremely negative impact on the long-term development of the insurance market, which is mainly manifested in the following aspects:

2.4.1 Consumers' lack of sufficient knowledge of the insurance industry and low awareness of insurance participation. The public's overall understanding of the insurance industry is not strong, people do not fully realize the important role of insurance for the stability of the social and economic order as well as to protect the interests of the individual, the initiative to buy insurance is few and far between, and people also hold a negative concept of insurance sales. Therefore, the insurance industry is characterized by a buyer's market, and even if the insurer makes great efforts to promote it, the effect is still very little. The insurance industry plays a key role in stabilizing the social order, and it is necessary to let the general public fully realize the important role of the insurance industry, guide people to take the initiative to participate in the insurance, and continuously improve and perfect the social security system.

2.4.2 High cost of the insurance industry, the quality of service needs to be further improved. Compared with foreign insurance companies, the domestic insurance industry is generally characterized by high fees and poor service quality. First of all, the development of China's financial market is not mature enough, strict regulation, which limits the development of the insurance industry; secondly, the development cycle of China's insurance industry is relatively short, insurance sales are still in the exploratory stage, for how to improve the quality of service is still a long way to go, so when dealing with the insurance claims business, the contradiction between the participants and the insurance company intensified, it is difficult to provide quality service.

2.4.3 The insurance market should further expand the breadth and depth of opening up to the outside world. Since China's accession to the World Trade Organization, various industries have joined the ranks of the international market, the insurance industry also conforms to the development of the times, and gradually with international standards. To take the initiative in the fierce market competition, the insurance market should continue to broaden the market. On the one hand, domestic insurance companies should be encouraged to go out actively. At the same time, foreign insurance companies should be actively introduced. Only by going out to the international market and actively introducing competitive mechanisms can domestic insurance companies always maintain development vitality and constantly adapt to the development needs of the market economy. However, we should also recognize the situation that the main body of China's insurance market still needs to be further improved.2.4.4 The form of insurance organization and business mechanism all show a single structure. At present, China's insurance companies are shown as commercial nature, and the relative lack of insurance industry matching the national industrial policy, mainly in the basic industries. As far as agriculture is concerned, as a pillar industry of the national economy, the ability to resist risks is relatively weak, but insurance companies are reluctant to guarantee agricultural risks from the point of view of their own interests.

2.4.5 Professional talents are relatively lacking, the talent structure is not reasonable. At present, the main factor restricting the development of China's insurance industry is the lack of professional insurance talents. Constrained by subjective and objective factors, China has long neglected the training of insurance professionals. Since the reform and opening up, China's colleges and universities have opened a market insurance specialty, but the talent training mode is backward, difficult to meet the actual needs of the market. Insurance salespersons can go on duty after simple business training and participate in the insurance business, which disrupts the normal development of the insurance market. Some salespeople take unfair competition in order to improve performance, hindering the improvement of underwriting quality. [2]

3 Measures and Suggestions to Promote the Development of China's Insurance Market

After more than two decades of development, the insurance industry has gradually ushered in a critical period of transformation and development, so we need to comprehensively improve the ability of the insurance industry to respond to the development opportunities, and at the same time deepen the reform, to promote the new development of the insurance industry.

3.1 Insurance market to order and health

In order to meet the increasing market demand, insurance companies are also gradually emerging as a spring, at the same time, insurance agents as a new development situation is also constantly tending to improve and rationalize. In the future, the main body of competition in China's insurance market will undergo a radical change, and the invisible potential subjects will be transformed into real supply subjects in the near future. In addition, the market competition is becoming more and more intense, and the insurance market is gradually showing a diversified competition situation. At present, company reputation, professional talents and service quality have gradually become the main aspects of competition in the insurance market, and the insurance market is also showing the characteristics of order and health. [3]

3.2 The influx of professional insurance talents has injected new vitality into the development of the insurance industry

To achieve long-term development of the insurance industry, it is necessary to pay attention to the cultivation of professional talents. Restricted by historical and practical conditions, China's insurance industry has been lacking professional talents. At present, China's insurance industry has made rapid progress, the state and the insurance industry began to pay attention to the training of professional insurance personnel. First of all, domestic universities have opened insurance disciplines, which have imported a lot of fresh blood for the insurance industry and laid a solid talent foundation for the long-term development of the insurance industry. Secondly, insurance companies have begun to pay attention to effective training, constantly introducing and absorbing advanced foreign experience, strengthening international exchanges and cooperation, and fundamentally improving the overall quality of insurance personnel.

3.3 Insurance business development towards specialization

At present, the process of China's insurance system reform continues to deepen and develop, the development of insurance business towards specialization, agricultural insurance, as well as export credit insurance is gradually withdrawn from the traditional commercial insurance, which objectively promotes the development of specialization in the insurance industry.

3.4 Insurance system innovation

China's insurance industry to maintain sustainable, stable and healthy development, it is necessary to start from China's national conditions, and constantly adapt to market demand, and constantly innovate the content and mode of insurance system reform, from the marketing methods, product development and distribution system, and so on, and constantly innovate the form. In this way, China's insurance industry can better integrate with the international market, wholeheartedly serve the insured, and constantly improve the credibility and image of China's insurance industry, so that it can take the initiative in the fierce market competition. [4]

References

[1] Xiang Bolin; The Current Situation and Strategy Selection of China's Insurance Marketing [J]Times Finance; 2013(02)

[2] Jia Liying; Wang Chao; He Jing; The Problems and Countermeasures of China's Insurance Marketing [J]Science and Technology Association Forum (the second half of the month); 2012(09)

[3] Li Jun; on the current situation of marketing and marketing channel selection of China's insurance companies [J] Southwestern University of Finance and Economics; 2013 (04)

[4] An Xianglin; China's insurance marketing problems and countermeasures [J] Business Research; 2011 (12)

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