How is the insurance industry? Future development trend

28 years ago, from scratch.

Since the reform and opening up, China's insurance industry has experienced rapid growth for nearly 30 years, which has played an important role in compensating disaster losses, maintaining social stability and supporting China's economic construction.

First of all, the whole industry has developed by leaps and bounds. Mainly manifested in three aspects: First, the rapid growth of insurance institutions. 1980, there were only 1 insurance companies in China, while 1998 had 28; By the end of 2007, there were 1 10 insurance institutions in China, four times as many as ten years ago. In addition, the number of professional insurance intermediaries (agents, brokers and loss adjusters) has increased by nearly 500 times in a few years, from several in 2000 to 233 1 at the end of 2007. Second, the premium income grew rapidly. 1980, the national premium income was 460 million yuan, and in 2007, the national premium income was 703.58 billion yuan, with an average annual growth of 3 1.2% in 28 years. Third, the rapid growth of insurance assets. From 1980 to 2007, it took the insurance industry 24 years to accumulate the first 1 trillion assets, 3 years to accumulate the second 1 trillion assets, and the third 1 trillion assets only took 1 year. By 2007, the total assets of China insurance industry reached 2.9 trillion yuan, five times that of five years ago. 1978 to 2007, China's economy grew at an average annual rate of 9.88%, while the total assets of insurance institutions increased by more than 7,000 times in the same period, with an average annual growth rate of 37.5%, far exceeding the economic growth rate. The rapid development of China's insurance industry has shocked the global industry.

Analysis on the Present Situation and Development Prospect of China Insurance Industry

Analysis on the present situation and development prospect of insurance industry in China Looking at the development of insurance industry in China for more than 20 years, although the insurance market in China has made great achievements, there is still a big gap compared with developed countries. After China's entry into WTO, China's insurance industry is facing rare opportunities and unprecedented challenges. This paper analyzes the present situation, development trend and prospect of China's insurance industry, and puts forward the countermeasures that should be taken after China's entry into WTO. Key words: current situation, development trend, challenge potential and countermeasures of insurance industry 1. Since the reform and opening up, China's insurance industry has made a series of achievements. A new pattern of insurance market with state-owned insurance companies as the main body, Chinese and foreign insurance companies coexisting, foreign insurance companies competing to enter and many insurance companies competing to develop has been formed. However, compared with developed countries, there is a huge gap in China's insurance industry. (1) In the process of opening up, China's insurance industry has continuously developed and gained a series of achievements, and its business has developed rapidly. Since 1980 resumed domestic insurance business, China's insurance industry has maintained a good momentum of sustained, rapid and healthy development. In 2003, the total premium income reached 388.04 billion yuan, an increase of 27. 1% over the previous year, equivalent to 2.8 times of 1999; The total assets of the insurance industry reached 912.28 billion yuan, an increase of 41.5% over the previous year; The balance of insurance funds reached 873.9 billion yuan, an increase of 5 1.4% over the previous year. In 2003, the insurance density was 287.44 yuan (that is, the average premium of each citizen), and the insurance depth was 3.33%. The insurance industry in China presents a good trend of vigorous development. 2. The market system has been gradually improved. By the end of 2003, there were 665,438+0 insurance companies in China, including 24 Chinese insurance companies and 37 foreign insurance companies. According to the nature of business, there are 25 property insurance companies, 30 life insurance companies, 5 reinsurance companies and/kloc-0 policy insurance companies. In addition, there are 6 insurance group (holding) companies and 2 insurance asset management companies. There are 705 professional insurance intermediaries, including 507 insurance agents, 5 insurance brokers1/kloc-0, 83 insurance assessors and 0.5 million insurance employees. 3. The system reform is progressing smoothly. Significant progress has been made in the shareholding system reform of state-owned insurance companies such as China People's Insurance Company, China Life Insurance Company and China Reinsurance Company. By absorbing foreign capital and private capital, some joint-stock insurance companies have optimized their ownership structure, gradually improved their governance structure and further improved their management level. A breakthrough was made in the reform of the management system for the use of insurance funds. With the approval of the State Council, China People's Insurance Holding Company and China Life Insurance Group Company respectively set up insurance asset management companies to carry out professional management and centralized and unified use of insurance funds. Exploring the reform of insurance fund management has taken important steps. 4. The laws and regulations were initially improved. 1995 "People's Republic of China (PRC) insurance law" was promulgated and implemented, which marked that China's insurance industry entered the stage of legal compliance and legal operation. In order to meet the needs of China's entry into the WTO, the State Council promulgated the Regulations on the Administration of Foreign-funded Insurance Companies in 20001,and the CIRC actively cleaned up the laws, regulations and rules inconsistent with the WTO rules. In 2002, the new Insurance Law was promulgated and implemented. At the same time, according to the relevant provisions of the new Insurance Law, the China Insurance Regulatory Commission has formulated and revised a series of supporting rules and regulations such as the Insurance Company Ordinance. A system of laws and regulations suitable for the development of China's insurance market has gradually taken shape. 5. Insurance supervision is gradually in line with international standards. Substantial steps have been taken in solvency supervision, with the promulgation of the Provisions on the Management of Solvency Limits and Supervision Indicators of Insurance Companies, the establishment of a solvency early warning index system, and the initial establishment of a solvency supervision system framework in line with China's national conditions. At the same time, a series of regulatory rules and regulations have been implemented, such as regulatory indicators of branches of property insurance companies, regulatory reports of different types of property insurance companies and actuarial provisions of new life insurance products. Strengthened the system construction of insurance supervision. (2) Compared with developed countries, the insurance industry in China has a huge gap of 1 in the following aspects. Judging from the scale of insurance development, 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. 2. From the perspective of insurance depth and insurance density, China is at a very low level in these two aspects, which is far behind the developed countries. 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 10%. In China, the insurance depth in 2000 was 1.8%. 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, or about 15 US dollars, while in the United States it is 1600 US dollars, which is 107 times that of China and 307 times that of Japan and China. Insurance depth and insurance density are important indicators to measure the development level of insurance industry. 3. Judging from people's understanding of the insurance industry in China, the concept of insurance is still relatively poor. People don't 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. As the product of market economy and the stabilizer of society, insurance must let people know its function from the perspective of vital interests. (3) According to the general law of market economy development and the actual situation of China's insurance industry in recent 20 years, it is predicted that the following development trends will appear in China's insurance industry in a long period of time: 1. Institutionalization of insurance market. Judging from the promulgation and implementation of 1995 Insurance Law, especially since the establishment of 1998+0 1 China Insurance Regulatory Commission, the pace of the construction and improvement of China's insurance market system is accelerating, and a China insurance market system with complete system, complete categories and sound regulations is being established. 2. Specialization of business operation. With the deepening of China's insurance system reform, export credit insurance, agricultural insurance and other policy insurance businesses will be separated from commercial insurance companies, and special policy insurance companies will be established by the state. At the same time, a franchise insurance company will be established in the next few years, specializing in fire insurance or motor vehicle insurance. 3. Orderly market competition. Starting from 1997, the People's Bank of China adjusted the refund and handling fees of aviation accident insurance and motor vehicle insurance by reorganizing its agencies, and vigorously reorganized the insurance market. Many violations were stopped. After the establishment of the CIRC, it further emphasized the need to gradually standardize the market order and intensify the crackdown and punishment on illegal institutions and violations, and achieved remarkable results. 4. Characteristics of insurance products. In a mature market, products can only occupy the market by brand+price+service, which is character. 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. 5. Insurance system innovation. According to China's specific situation, China's insurance innovation mainly includes product development, marketing methods, management, organization, electronic technology, service content, employment system, distribution system and incentive mechanism. Through the innovation of the above contents, the development of China's national insurance industry will be promoted, and domestic insurance companies will be invincible in the competition with foreign insurance companies. 6. Intensive management. Under the background of increasingly fierce market competition, domestic insurance companies have realized the disadvantages of only focusing on expanding scale and seizing the market, and have sought to take the road of benefit-oriented, intensive development and pursue the maximization of economic benefits. 7. Internationalization of industrial development. Under the general trend of global economic integration, it is the only way for China's insurance industry to be in line with international standards. China insurance companies will also set up branches abroad, strengthen technical cooperation and business cooperation with the international insurance (reinsurance) market, and actively carry out international insurance business. 8. Professionalization of employees. Under the background of peer competition at home and abroad, higher requirements are objectively put forward for insurance practitioners. Commercial insurance companies will pay more attention to the training of talents, not only to train insurers, underwriters, actuaries and professionals who meet the needs of domestic insurance business development, but also to train export-oriented talents who are proficient in international insurance practice and participate in international insurance market competition. Second, the development of China's insurance industry is facing unprecedented challenges and has great potential. After China's entry into WTO, China's insurance industry is facing unprecedented challenges, and China's insurance industry has great potential. (1) The development of insurance industry in China is facing unprecedented challenges: 1. The entry of foreign insurance companies has strengthened the competition in the insurance market, leading to a rapid decline in the premium profit rate of insurance companies. 2, resulting in the outflow of some premiums. Although Article 102 of the Insurance Law, which was implemented in 1995, stipulates that "if an insurance company needs to handle reinsurance ceding business, it should give priority to the insurance company in China", it is difficult in practice. At present, the insurance regulatory authorities require foreign-funded insurance companies to maintain a premium of not less than 30%. Under the statutory reinsurance of 20%, 50% of the premium can still be reinsurance by foreign-funded insurance companies. 3. Competing with domestic insurance companies for a certain market share. Objectively speaking, foreign insurance companies have the advantages of strong financial strength, advanced management and high technical service level. At present, although their business scope is still limited, their development momentum is still relatively good. From the perspective of the national market structure, the proportion of foreign insurance companies is less than 1% in, but the market share of foreign insurance companies in open areas is close to 10%, and there is a tendency to continue to expand. 4. Foreign insurance companies have more favorable conditions than domestic insurance companies in terms of treatment, which will lead to the brain drain of some outstanding talents of domestic insurance companies. (2) Judging from various factors that affect the development of the insurance industry, the development of China's insurance industry has great potential of 1. With the increase of income of urban and rural residents and the continuous decrease of Engel's coefficient, insurance products, as a special financial consumer goods, will inevitably increase with the increase of income. 2. With the constant adjustment of China's economic structure, the insurance industry will surely grow with the increase of the proportion of the financial industry in the national economy. In the contemporary world economic activities, the insurance industry plays an increasingly important role, and its proportion in the economic structure will also increase day by day. Insurance institutions should fully realize the huge market potential and living space of China's insurance industry and realize the transformation of insurance industry from buyer's market to seller's market. 3. In the period of social and economic transformation in China, the scope of the insured and the insured is expanding day by day. All kinds of accidents occur frequently, and natural and man-made disasters come unexpectedly, which provides a sufficient foundation for expanding the development of the insurance industry, creates favorable objective conditions for insurers to promote insurance and carry out business activities, and provides a broader space for the further development of the insurance industry. Three. Countermeasures for the insurance industry after China's entry into WTO Faced with the huge gap between China's insurance industry and developed countries and the challenges faced after China's entry into WTO, we should consider the following countermeasures: (1) Accelerate the pace of opening up the insurance market to the outside world and improve the competitiveness of the national insurance industry. At present, China's insurance market has two characteristics, one is closed and the other is monopoly. In view of the development of China's insurance market, we should speed up the pace of opening up to the domestic insurance market, establish a set of insurance mechanism to adapt to the market economy as soon as possible, break the closed monopoly market pattern, liberalize the domestic insurance market, and boldly let all existing insurance companies join the competition to achieve full orderly competition and full development of the insurance market. (2) The state should implement a low tax policy for the insurance industry to further strengthen the strength of the national insurance industry. At present, China's insurance companies pay 8% business tax, 33% income tax and 15% adjustment tax according to premium income every year. China's financial taxation on insurance companies has affected the accumulation of insurance companies' liability reserves to some extent, thus affecting the improvement of insurance solvency. In addition, some policies that give foreign insurance companies more than national treatment will also put Chinese and foreign insurance companies in an unequal competitive position. All of the above need to be discussed and studied by the state from a policy perspective. (3) Reform the insurance management system and management system of domestic insurance companies in China, and realize the integration with international practice as soon as possible. The insurance industry in China was born in the era of planned economy, and now the domestic insurance companies are basically the old management system in personnel and financial management. Due to the rigid system, low salary and the use of talents, the wages and benefits of employees cannot be compared with those of foreign-funded companies. Therefore, it is necessary to overcome all kinds of disadvantages in the domestic insurance system through reform and introduce advanced management system and operation system, so that domestic companies can improve their enterprise vitality and enhance their market competitiveness as soon as possible. At the same time, it is necessary to improve and develop the capital market and securities market that are conducive to the use of funds by domestic insurance companies as soon as possible, broaden the operating channels of domestic insurance companies, enhance the capital strength of domestic insurance companies, actively and steadily promote the reform of domestic insurance companies, and at the same time make them conform to international standards as soon as possible in corporate structure and insurance business operation and actively participate in competition. (D) In the increasingly internationalized insurance market, if China insurance industry wants to be invincible, it must establish a brand-new insurance management concept. If domestic insurance companies want to truly cultivate national insurance companies with strong strength and national reputation, they must change their business philosophy, establish the management idea of benefit and cost, establish an internal control mechanism to adapt to the future insurance market, and strictly manage underwriting quality, management efficiency, risk prevention ability and standardized operating procedures. Change extensive management into intensive management, practice internal strength hard, and improve risk management and technical level. It is necessary to change the single business model into various forms of marketing model, and creatively explore various forms of marketing means in the spirit of pioneering and innovation. We should learn from the practices of foreign insurance companies, focus on cultivating intermediaries, and use intermediaries to develop the industry. To improve the quality of insurance services as a means to make themselves invincible. In addition, the state should support the national insurance companies in policy, and implement a preferential policy in resource allocation to enhance their comprehensive strength. (five) actively carry out insurance science and technology innovation activities, comprehensively and rapidly improve the management level. Insurance technology innovation is a variety of pioneering and creative changes in the operation of insurance business. It mainly includes insurance innovation, marketing innovation and service project innovation. Insurance technology innovation is conducive to narrowing the gap between the national insurance industry and the international insurance market, promoting the rapid development of the insurance industry, and meeting the growing multi-level and diversified insurance needs of the society to the greatest extent, so that we are in a relatively favorable position in the future insurance market. At present, as far as insurance innovation is concerned, we should vigorously develop liability insurance, medical insurance and other types of insurance and make every effort to open up new types of insurance. Such as dividend insurance, variable amount insurance, single disease insurance and specific disease insurance. Secondly, in terms of marketing methods, we can learn from the operating experience of foreign insurance companies and combine our own situation to vigorously develop new marketing means and methods to pave the way for the development of online insurance as soon as possible. Take the development of online insurance as a strategic move in the 2 1 century, and make positive preparations for occupying the online market. (6) Accelerating the future competition of cultivating high-quality talents is, in the final analysis, the competition of talents. The national insurance industry should not only pay attention to building nests to attract phoenix, attract talents through respect and preferential policies, but also accelerate the education and training of existing talents in all directions. At the same time, we should pay attention to cultivating corporate culture atmosphere, creating a harmonious, relaxed and United environment, enhancing corporate cohesion and preventing brain drain. (7) Improve insurance laws and regulations, strengthen market supervision, ensure the healthy and sustainable development of the insurance market, and make supervision complete, dynamic and continuous. At the same time, it is necessary to speed up the formulation of relevant laws and regulations before and after China's entry into WTO, including the revision and improvement of the Insurance Law, implement unified supervision of domestic and foreign insurance companies, avoid double standards in supervision objectives, indicators and means, and give full play to the role of national insurance supervision.

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