Insurance marketing problems and countermeasures

Abstract]The development of rural life insurance market is a further improvement and supplement to the rural social security system. At present, China's rural life insurance started late, poor foundation, facing urgent problems. To develop rural life insurance, it is necessary to actively develop insurance products that are really suitable for the needs of farmers, and strive to achieve simple terms, low premiums and moderate protection; to increase the innovation in the marketing network construction and business management system of rural life insurance; to address the special situation of the rural market, insurance companies should make clear the different social problems of the city and the countryside in the process of business development, and to avoid the emergence of social conflicts ; insurance companies should strengthen communication and coordination with local governments and relevant departments to strive for the best possible external environment for the development of rural life insurance.

[Keywords]Rural life insurance market; insurance products; marketing network; business management; innovation

The State Council promulgated the Several Opinions on the Reform and Development of the Insurance Industry (hereinafter referred to as the Several Opinions) on June 26, 2006, which put forward the need to "make efforts to develop commercial old-age insurance, health insurance, and accidental injury insurance suitable for farmers". insurance for farmers". Wu Dingfu, Chairman of the CIRC, emphasized that "the vast majority of China's population are farmers, and the main battlefield for future insurance competition is in the countryside, so the insurance industry should actively explore this potentially huge market with a strategic vision." From the perspective of China's reality: First, there is a demand for life insurance for special groups of farmers. This includes landless farmers in the process of urbanization and migrant workers who account for 10% of the national population. Second, the aging of China's rural population is more serious than that of the towns. This will gradually change people's consumption and savings structure and increase the awareness of the pension crisis. Due to the limited financial resources of the government, it is impossible for China's existing basic social pension and medical insurance system to fully cover the vast rural areas in a short period of time, and its characteristic of "wide coverage and low protection" also determines that it is unable to satisfy the multilevel protection needs faced by the farmers in terms of old age, medical care and so on. Therefore, the development of rural life insurance market, for commercial insurance companies, is a rare opportunity, but also for the rural social security system to further improve and supplement.

I. Problems faced in the development of rural life insurance

Currently, China's insurance industry is in the primary stage of development, the rural insurance market is still in the early stage of the primary stage, and rural life insurance is a late start, poor foundation, facing a variety of problems that need to be solved.

(I) Insufficient variety and quantity of life insurance products that are truly suitable for the rural market

The past development strategy of life insurance companies was city-centered, coupled with the relatively low level of competition in the rural market, insurance companies are not highly motivated to develop insurance products suitable for the rural market, and the development capacity is limited, which restricts the development and innovation of rural life insurance. As a result, the insurance products offered to the rural market do not meet the needs of the countryside. At the current stage, risk protection is the main purpose for farmers to purchase insurance, but the insurance products currently designed for farmers, for one thing, fail to fully take into account urban-rural differences in products, and the phenomenon of homogenization is serious. The sale of the same kind of insurance products in urban and rural areas, where the level of per capita income varies greatly, obviously cannot meet the insurance needs of the majority of low-income farmers. At the same time, the structure of insurance products is single and the number is relatively small, far from meeting the urgent needs of farmers for prevention of old age and illness. Secondly, the price of insurance products is relatively high, exceeding the purchasing power of most farmers. According to the survey, even in economically developed Jiangsu Province, more than one-fifth of the respondents answered the question of "the main reason for not purchasing insurance in the county" as "low income and family financial difficulties".

(2) Rural life insurance still needs to be strengthened in terms of the construction and innovation of marketing system and business management system

According to the current situation in China, the marketing channel of rural life insurance is mainly the system of rural marketing service department, which is mainly based on the channel of individual agents. Overall, the construction of rural marketing network has not yet taken shape, and the establishment of a complete and effective marketing channel system is still some time away. At the same time, we should also see that, along with the construction of the rural marketing service department, education and training have not been followed up in a timely manner, and the overall quality of marketing personnel has yet to be improved, with a few rural areas having more prominent problems in terms of customer return visits, renewal fees, etc., making it difficult to effectively safeguard the interests of customers. In addition, in terms of the business management system, the management of institutions, personnel, funds and documents needs to be strengthened urgently, and the business, financial and management information work needs to be improved urgently, in order to further adapt to the establishment of internal control mechanisms and standardized business processes in rural markets.

(3) The rural market is relatively fragile, if the development is not appropriate, it is very likely that the herd insurance, group withdrawal and other irrational behavior, seriously damage market resources

Since China's vast rural areas of the people's culture of simplicity, the farmers' self-protection awareness and self-protection ability is weak, the market is highly contagious, the sales of misguided and unjustified refusal to pay claims may be compared to the city the consequences of consequences are much more serious. The consequences of sales misinformation and unjustified denial of claims may be much more serious than those in urban areas. As the regulator said: the development of the rural insurance market is like the ecological need to protect, if the development is good, the potential is huge, the rural insurance market is like a pot of gold, digging endless; if the development is not good, due to the strong substitutability of life insurance products, farmers may not buy insurance products, insurance in the region can not be developed, or even extinction.

(4) The external policy environment has not been able to meet the business development requirements of rural life insurance

The natural conditions and economic situation of the vast rural areas determine the development of rural life insurance business operating costs are much higher than urban. At the same time, the almost blank social security system makes the rural life insurance market bear the social responsibility is also much higher than the city. Thus, the effective promotion of the government is one of the key factors in the development of rural insurance business, but the current supporting policies on finance, taxation and other aspects can not meet the development of the business, the awareness of some local governments to take the initiative to utilize the insurance and insurance companies needs to be strengthened, and the policy support for the development of rural life insurance also needs to be strengthened.

Two corresponding countermeasures for the development of rural life insurance

(1) Actively develop insurance products that really suit the needs of farmers, and strive to achieve simple terms, low premiums, and moderate protection

Life insurance companies should increase the innovation of rural life insurance products, focusing on the development of medical care, old age, accidents, and other protection insurance for the farmers' income status and actual needs.

Life insurance companies should increase the innovation of rural life insurance products, focusing on the development of medical, pension, accident and other protection insurance for farmers' income and actual needs. In areas where conditions are favorable, they can appropriately develop investment with-profits products, but they should try to keep them within a low percentage. In terms of product design and promotion, the proportion of single-payment, short-term and long-term business should be adjusted to maintain a reasonable structure, and life insurance small-term business should be prioritized for development in order to protect the sustainable development of rural life insurance business. It should be noted that the product development should be especially guided to the labor force as the main object of insurance, while the current rural market participants are mostly children.

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