Sustainable development of life insurance companies

Throughout the history of world economic development, the rapid development of China's insurance industry in the past 25 years is indeed a "miracle". The achievement of this "miracle" stems from the good macro-economic development environment in China for many years, and benefits from the dedicated cultivation of the professional, standardized and international insurance market by insurance professionals in China. An important and beneficial experience provided by the insurance industry in western countries is that only by considering the insurance industry based on the long-term development strategy can we achieve steady progress. Because of its own particularity, life insurance is different from general industry and commerce and even traditional financial industry to a great extent. It pays attention to long-term management and prudent development, which can be said to achieve sustainable development and is an important lifeline related to the overall development of life insurance industry. Then, in the face of various challenges, how should China's life insurance industry achieve sustainable development? Personally, we can start from the following aspects: establishing an insurance credit system to lay the foundation for the sustainable development of life insurance industry. Due to economic, social and ideological reasons, the phenomenon of dishonesty in China is serious at present, and there has also been a "credit crisis" in the field of life insurance. Credit poverty has become a major problem that restricts the sustainable development of China's life insurance industry and affects its international competitiveness. The establishment of insurance credit system is to standardize all aspects of insurance supervisor's credit, insurance subject's credit and non-professional credit in insurance business activities by means of legal adjustment, system construction, moral norms and social supervision, so as to build a complete insurance credit system and lay a solid foundation for the sustainable development of life insurance industry. The life insurance industry should establish an idea that customers, personal agents and life insurance companies are in an indestructible "ecological environment". Protecting the legitimate rights and interests of the insured according to law is to maintain the sustainable development of the life insurance industry and individual agents. As the main body of the insurance subject's credit system, life insurance companies should also strengthen the system construction of contract management, marketing early warning, financial management and claim management, and strive to restrain and standardize the credit behavior of insurance subjects from the system. Change the current situation of over-reliance on individual agents' exhibition industry, vigorously develop insurance intermediaries, and effectively resolve insurance disputes caused by individual agents' non-compliance behavior. Strict internal control mechanism, improve information disclosure standards, timely disclose the company's operating and financial status to the public, so as to make the business activities of life insurance market participants transparent. Guard against incremental risks and build a platform for the sustainable development of life insurance industry. Incremental risks are relative to stock risks and refer to new risks arising from unreasonable insurance structure and premium structure in life insurance operation. Non-performing assets and spread loss are the stock risks previously formed in China life insurance industry. Judging from the current fund management system and product structure of life insurance companies, it is unlikely to produce new and large-scale non-performing assets and spread losses. At the same time, China's life insurance industry is in a stage of rapid development, which is a favorable opportunity to resolve the stock risk. If we can develop our business on the basis of preventing incremental risks, the stock risks can be gradually diluted and resolved. Therefore, the current risk prevention work of life insurance companies should focus on preventing incremental risks, because if incremental risks cannot be effectively controlled, it will pose a serious threat to the stable operation and sustainable development of life insurance companies. Life insurance companies should formulate a steady development strategy and take measures from various aspects to prevent and resolve the incremental risks of the current life insurance industry. First of all, in terms of operating mechanism, life insurance companies should improve their operating mechanism and truly become market players who meet the requirements of modern enterprise system, pursue economic benefits and have self-restraint ability. Secondly, in terms of technology, life insurance companies should establish scientific methods, technologies and standards for evaluating and monitoring the incremental risks arising from their operations. To strengthen industry innovation and improve the strength of sustainable development of life insurance industry, life insurance industry should keep pace with the times on the basis of maintaining and carrying forward good management experience and traditions, reform and improve outdated concepts, practices and systems that hinder development, and promote the development and progress of life insurance industry with institutional vitality and policy orientation. We should speed up the transformation of operating mechanism along the direction of establishing a modern enterprise system; According to the principle of "making progress and retreating" and "doing something but not doing something", we should adjust and reorganize the organizational structure to make it more scientific and reasonable, lean and efficient, and better adapt to the requirements of the new situation and new tasks; It is necessary to speed up the innovation of insurance products, actively develop new types of insurance with characteristics and high technology content, and constantly meet the growing insurance needs of customers; It is necessary to innovate sales channels and explore online sales; It is necessary to firmly establish the strategic thinking of strengthening the company with talents, firmly grasp the three links of training, attracting and using, constantly adjust and optimize the talent structure, and strive to build four professional teams of management, sales, technology and service, so as to maximize the value allocation of talents in different positions and further exert the vitality and growth potential of development. Accelerate structural adjustment and enhance the stamina of sustainable development of life insurance industry. The competition of modern enterprises lies not in maximizing short-term profits, but in long-term development and forming a sustainable leading edge. Therefore, the life insurance industry must adjust its structure in development, improve its efficiency in structural adjustment, and strive to achieve the unity of speed and structure, quality and efficiency. The ultimate goal we pursue should be "strong", and the ideal state is "big side and strong side", so "big" and "strong" are in direct proportion. To achieve this ideal state, we must grasp several points: First, in the process of rapid growth, the company should pay attention to the synchronous improvement of management level, step by step, rather than relying on rapid expansion to achieve rapid development. Secondly, in the process of growth, we should establish a perfect supervision and restraint mechanism. Obtaining the obvious competitive advantage of sustainable development makes it difficult for competitors to imitate and take the lead in the industry. Thirdly, create a good working environment and build a learning organization to provide intellectual support for the company's sustainable and leading development. * * * Cultivate the market and create an environment for the sustainable development of life insurance industry. Although China's life insurance market is rich in resources, it is limited in a certain period and a certain stage of social development. Therefore, we must protect, utilize and develop life insurance resources. With the full opening of China's insurance market, market competition will become more and more fierce, but this kind of competition should not be "life-and-death", but should be a higher level of competition and cooperation. Consumption is hierarchical, and each life insurance company has its own market space. In order to seize the market, we must not operate illegally, regardless of cost, quality and risk. We must maintain the honor of * * * with our competitors and develop ourselves in a down-to-earth manner in the long-term competition. Furthermore, life insurance practitioners are not only pursuing "single win", but "multi-win" and "multi-win". Cultivating a benign market has become the mainstream of modern competition. For the life insurance industry, revitalizing the national life insurance industry is not something that any company can accomplish independently, but requires the overall cooperation of all life insurance companies. Only by cooperating in competition and competing in cooperation can we make common progress and promote the sustainable development of life insurance industry.

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