Three characteristics of life insurance.

(A) the problem of insurance suppliers

1, single insurance, serious homogenization of insurance products. At present, many types of insurance in the insurance market have poor pertinence and applicability, and the terms are not strictly designed, which can not meet the needs of policyholders in many aspects, and even become obsolete products with a backlog of unsalable sales. Therefore, many insurance companies focus on a limited number of types of insurance. For example, life insurance, major companies are desperately fighting for and seizing the children's insurance market; In terms of property insurance, the competition between companies mainly focuses on several major types of insurance, such as property, vehicles and cargo transportation. As for responsibility, credit, guarantee and medical insurance, they are all in urgent need of development. In addition, the homogenization of insurance products is also very serious. According to relevant statistics, the similarity rate of insurance structure among insurance companies in China is above 90%. This situation has led to "redundant construction" and excessive competition of insurance companies, resulting in a waste of social productivity and resources.

2. The phenomenon of intensified competition and illegal operation is quite serious. Its main manifestations are: first, increase or decrease the rate without authorization, expand the underwriting responsibility, and increase the return without compensation. In some major types of insurance, there are even some destructive and predatory competitive behaviors. For example, increase or decrease the basic premium of motor vehicle insurance or improve the grade of publicity materials, and increase or decrease the rate in disguise. The second is to pay insurance agency fees in excess of the prescribed proportion. Taking aviation personal accident insurance as an example, many life insurance companies compete for this business, and the competition for handling fees has climbed, even reaching more than 70%. Third, without the approval of the People's Bank of China, new types of insurance were opened without authorization. Fourth, false underwriting and reverse insurance. In order to complete the premium task, some grass-roots insurance institutions even increase the premium and business volume through false underwriting methods such as underwriting, surrender and reinsurance. To make matters worse, some insurance companies have actually gone through insurance formalities and signed insurance contracts for enterprises with insurance accidents. These acts of unfair competition and illegal operation seriously undermine fair competition in the market, aggravate the operational risks of insurance institutions themselves, and make some insurance products hide serious compensation crisis.

3. Internal management is chaotic, there are loopholes in accounting and account management, and internal control is weak. First, the management and use of important documents are chaotic. Second, the account management is not strict. In order to facilitate the operation, some grass-roots insurance companies did not set up liability reserve depositors in the bank as required, resulting in unreasonable occupation of insurance funds, reduced insurance wealth management income, reduced payment ability and potential risks. Third, accounting is untrue. Some grass-roots insurance companies make a fuss about accounting for outstanding claims in order to achieve high task targets. Some in order to increase profits, increase premiums receivable and reduce outstanding claims; Some take out insurance through loans, distribute benefits, fake insurance policies and fake claims. Fourth, there is a lack of necessary risk management system, and the risk prevention and control ability of some important business links such as underwriting, claims settlement and capital utilization is very weak. Fifth, internal audit supervision is not enough. Many insurance companies pay more attention to business than management, and the audit system is not perfect. They lack daily supervision and inspection of subsidiaries and agencies, and cannot find and resolve risks in time.

4. The single use of funds affects its ability to pay. China's "Insurance Law" stipulates that the use of insurance funds is limited to bank deposits, buying and selling government bonds, financial bonds and other forms of fund use stipulated by the State Council. The single use of insurance funds, narrow channels, weak ability to maintain and increase value, and the danger of depreciation, make insurance companies have to reduce the payout ratio to achieve profitability and improve operating efficiency.

5. Social security agencies and relevant departments enter the market in disorder, holding agency rights and compulsory insurance. For example, the government designated labor and personnel departments to launch "social endowment insurance", civil affairs departments to launch "farmers' endowment insurance", and trade unions and organizations to launch "industrial injury medical insurance". Due to the uncoordinated social insurance and commercial insurance institutions, the market is chaotic. Secondly, it is common for some departments to represent the insurance exhibition industry, such as "motor vehicle and third party liability insurance" of the traffic police brigade, "maternal and child health insurance" of the family planning office and "endowment insurance" of the government labor department. Because of the unequal relationship between the insurer and the insured, the public has resistance to it, which directly affects the service image of the insurance company.

(B) the insurance demand side of the problem

1, the public's risk awareness is weak and their willingness to insure is not high. In the past, under the planned economy system, the government implemented almost all-round protection for employees in state-owned departments from birth to death. At present, under the socialist market economy system, the subject of taking risks has gradually shifted from the government to enterprises and individuals. However, due to 1959- 1980, domestic commercial insurance has been closed for 20 years, and Chinese people's awareness of risk and insurance is bound to fall behind. According to relevant statistics, 1997' s survey of some urban residents shows that only 1.7% and 18.6% people know insurance very well, while 44.6% people are still in a state of "not knowing much" and 8.2% people know nothing about insurance. 2. The effective demand for insurance is insufficient. First, because insurance advertising is not thorough enough, residents are not "household names" about insurance. Second, the ability of insurance companies to develop and design new types of insurance is not strong, which limits the generation of effective demand. Thirdly, there is a general concept that insurance companies pay more premiums than claims, which leads to low claims efficiency and poor service quality, which makes many policyholders complain about claims service and limits the emergence of consumers' insurance behavior. Fourthly, in China, due to the influence of traditional culture and small-scale peasant economy, people believe in "raising children to prevent old age" and attach importance to family pension, which affects the enthusiasm of consumers, especially rural consumers. At the same time, this is also an important reason why rural life insurance is difficult to carry out.

3. The potential support crisis and inflationary pressure of insurance companies directly affect people's enthusiasm for participating in long-term life insurance.

4. Not knowing the difference between social insurance and commercial insurance, many citizens who have participated in social insurance think that they don't need to go to insurance companies, thus reducing the public's demand for commercial insurance.

(3) the problem of insurance agents

1, insurance agency problem:

First, there are still many insurance companies that set up agencies and fail to go through the registration and approval procedures with the People's Bank of China.

Second, the phenomenon of illegal issuance of insurance policies and ultra vires approval documents by agencies has occurred from time to time.

Third, insurance companies have no rules to follow in the business management and risk control of agencies, and there are great potential hidden dangers. Fourth, the organizational form, employment system, property rights relationship and legal relationship of the agency are very vague. These problems have brought obstacles to the development of the insurance industry.

2. The quality of insurance agents is not high, which affects the development of insurance business. Because the agents are mostly surplus labor and unemployed, they have insufficient insurance knowledge and a weak sense of responsibility. In addition, agents are not enterprising and lack of professional ethics, so that some people take advantage of the chaotic financial management to intercept, misappropriate or even embezzle insurance premiums and claims, which forms the moral hazard of insurance practitioners and adversely affects the business development of insurance companies.

Second, the countermeasures

1. Develop new types of insurance to enhance market competitiveness and stimulate effective demand. Insurance companies should vigorously cultivate and introduce professionals in the development and design of insurance products, improve old insurance products and develop new insurance products according to market demand, and build their own distinctive brands and fist products. Increase effective supply and stimulate the generation of effective demand.

2. Correct the guiding ideology of insurance companies. Insurance enterprises should establish correct business objectives, and have risk awareness, interest concept and legal concept. By increasing insurance publicity, improving service quality, increasing types of insurance, strengthening internal management, opening up markets, developing business and improving economic benefits; It is strictly forbidden to develop business at the expense of expanding risks and costs, and the assessment of exhibition personnel should pay attention to quality indicators to prevent potential risks; Strengthen the study and training of insurance practitioners, enhance legal awareness and legal concept, strictly enforce the law according to law, standardize business, abide by market planning, and put an end to disorderly competition in the insurance market.

3. Improve the internal control mechanism of insurance companies to prevent all kinds of risks. First, improve various rules and regulations, especially the underwriting and compensation system, financial system and accounting system. Second, it is necessary to establish and improve the risk management system, strengthen the risk prevention and control capabilities in underwriting, claims settlement and capital utilization, and ensure the company's solvency. The third is to establish and improve the internal audit system, pay close attention to training and equipping professional auditors, and carry out audit inspections in time, including daily audits of subordinate institutions and dispatched institutions, so as to find problems in time, plug loopholes and eliminate hidden dangers. Fourth, in the implementation of the system, strict rewards and punishments, serious treatment of violations of the provisions of the system, no mercy, in order to maintain the authority of the system.

4. Broaden the channels for the use of insurance funds, reduce the pressure of inflation, and improve the economic benefits of insurance companies. At present, the People's Bank of China has agreed that insurance companies should join the interbank lending market and engage in securities trading. This is far from enough for the situation that the insurance funds have been used only for a long time. In particular, life insurance funds are long-term and stable. In addition to the investment channels stipulated in the Insurance Law, on the premise of improving various financial systems, we should improve the return on capital through various channels and different investment institutions to alleviate the pressure of inflation, improve the solvency of insurance companies, give better play to the function of insurance funds to compensate economic losses, and achieve better social benefits.

5. Strengthen the supervision of the central bank to create a good market environment for insurance companies to operate according to law and compete fairly. First, strictly control the market access of insurance institutions, and report and approve insurance institutions according to regulations. Second, the People's Bank of China should formulate a specific and operable supervision system according to the existing Insurance Law and other laws and regulations; It is strictly forbidden for insurance institutions to jointly issue compulsory insurance with relevant departments, and it is not allowed to change the rate or increase the agency fee without authorization; Shall not engage in false claims, remote billing, forced sales and other illegal acts. Third, the supervision of the People's Bank of China should be forward-looking and attach importance to the supervision of the solvency of insurance companies. Set risk early warning indicators for payout ratio, reserve withdrawal, changes in net assets, asset allocation ratio, risk retention ratio and changes in solvency of insurance companies, and conduct regular audits and inspections. If the solvency fails to meet the prescribed standards, administrative intervention should be taken in addition to urging them to take appropriate measures. Fourth, strictly strengthen the supervision of insurance agents. In strict accordance with the "Regulations on the Administration of Insurance Agents (Trial)", we will promptly clean up and rectify the insurance agencies and cancel the agencies that do not have the Insurance Agency Business License. At the same time, people who have not obtained the qualification certificate of insurance agent shall not engage in agency business in any way. Fifth, strengthen the professional training of supervisors, change the state that "laymen are responsible for insurance supervision" and improve the supervision level.

6, gradually establish independent insurance regulatory agencies and insurance assessment agencies, strengthen the self-discipline of the insurance industry. First, establish an independent insurance regulatory agency to supervise and manage the insurance industry on behalf of the State Council to ensure the quality of insurance supervision. Second, establish an insurance company evaluation agency as soon as possible to evaluate insurance companies regularly, so that consumers can make rational choices when purchasing insurance products and protect consumers' rights and interests. Third, strengthen the self-discipline of the insurance industry, continue to strengthen the strength and responsibility of insurance industry associations to manage the insurance market, and promote the coordinated development of the insurance industry.

7. Establish and develop insurance agency companies to promote the healthy development of the insurance industry. At present, there are many problems in the quality of insurance agencies and agents, which bring many difficulties to the management of insurance industry. The establishment and development of professional insurance agencies is the need of the professionalization of employees and the modernization of insurance management, and it is also an important measure to standardize China's insurance market and maintain equal and orderly competition in the insurance market. Therefore, the establishment and development of insurance agency has become the inevitable trend and development direction of China insurance industry.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.