New insurance employees are confused

2003 was a year in which life insurance companies made significant progress in institutional reform. China Life Insurance (Group) Company and China Life Insurance Co., Ltd., which were reorganized by China Life Insurance Company, were officially listed on August 28. . As a branch of China Life, the Qinghai Branch is guided by the spirit of the 16th National Congress of the Communist Party of China and the important thinking of "Three Represents", adheres to the corporate purpose of integrity-based and stable operation, and firmly seizes the historical opportunity of the development of the western region. , determined to reform and innovate, and strive to open up the market. While maintaining the sustained and healthy development of the business, the company's restructuring and restructuring have achieved major results. China Life Insurance Co., Ltd. Qinghai Branch was officially unveiled on October 19 (hereinafter referred to as the Provincial Life Insurance Company Company), the new company will fully grasp the rare historical opportunity, firmly seize market opportunities, accelerate the pace of development, and make more contributions to Qinghai's comprehensive construction of a moderately prosperous society.

1. Development situation of the life insurance industry in 2003

(1) Steady development of various businesses

In 2003, the life insurance business in the province continued to develop rapidly, and peer companies Competition for accelerated expansion has become more intense, participating insurance continues to sell well, bancassurance business has developed rapidly, and group insurance business has declined significantly. As of the end of October, the province's life insurance premium income was 406.3772 million yuan, of which the premium income of China Life Provincial Branch was 286.3772 million yuan, a year-on-year increase of 12.13%, accounting for 70% of the province's life insurance market share, and continued to maintain its market dominance. Ping An Life's premium income was 120 million yuan, with a market share of 30%, an increase of 8 percentage points from the end of 2002, mainly due to the increase in market share through the expansion of bancassurance. At the beginning of 2000, the provincial life insurance company set a target of 370 million yuan in annual premium income. Focusing on this goal, combined with the reality of Qinghai, the provincial life insurance company is based on occupying the market, taking responding to competition and enhancing strength as the starting point of its work, focusing on development, laying a foundation, expanding the total volume, and increasing stamina; companies at all levels decompose tasks layer by layer, and truly We will work hard and take the initiative to overcome the negative impact of SARS on business development, organize all employees to implement countermeasures, expand business development channels, and minimize losses; launch phased planning and "Jiangheyuan Pioneer" in a timely manner. Business competitions such as "Spring Trip", "Accident Insurance 100-Day Competition", "Group Insurance Large Order 100-Day Competition" and other business competitions promote the coordinated development of various businesses; according to market demand, China Life Hongci Liangqian (dividend-sharing type) has been launched successively ) insurance, Yongtai Annuity, and Hongtai Endowment, etc., are welcomed by customers; change the traditional sales method, promote and innovate life insurance product briefing sessions, and achieve the rapid development of personal agency business; increase the focus on large industries and large-scale The company has strengthened its public relations and publicity efforts, strengthened communication and coordination with banks and postal services, and achieved new breakthroughs in part-time agency business. As of the end of October, the part-time agency business had premium income of 55 million, a year-on-year increase of 580%; it will continue to vigorously promote Xining and Haidong The "three-point, one-line" business development strategy focusing on the areas around Golmud, Golmud and the Qinghai-Tibet Railway has effectively promoted the sustained and steady development of the business by focusing on the large and supporting the strong and giving full play to the backbone radiation role of large companies in business development.

(2) Operation and management have been strengthened

With the focus on improving operating efficiency, the company's operation and management and the promotion and application of information technology have been strengthened to ensure the authenticity of business and financial data and improve Work efficiency and management effectiveness. Further expand the scope of centralized management of business and finance to achieve centralized and unified management at the provincial level; establish and improve an underwriting and claims system suitable for Qinghai's actual conditions, implement classified management, hierarchical underwriting and claims, and enhance the ability to prevent business risks. As of the end of October, the company had paid a total of 37.731 million yuan in compensation, making due contributions to the economic and social development of Qinghai and the stability of people's lives. Through strict review, 54 cases of refusal to pay compensation were investigated and dealt with, reducing compensation and benefits by 645,500 yuan. Implement comprehensive budget management and classified and graded performance appraisal methods, as well as expense budget management methods, and increase centralized management of funds. Shenren carried out learning and publicity activities on the new "Insurance Law" to strengthen employees' legal awareness and consciousness of operating in compliance with the law.

(3) Customer service is becoming increasingly standardized

In order to improve service quality and enhance the company's market competitiveness, the provincial life insurance company has established customer service centers in its affiliated branches on the basis of establishing a customer service center. The Service Department improves the customer service system, improves various rules and regulations, comprehensively implements customer service management methods, and strengthens the service awareness and integrity awareness of all employees.

On the premise of ensuring that management is in place, simplify business processes, improve service efficiency, ensure on-time claims settlement and payment, and realize full life insurance services; conscientiously implement the customer return visit system and close relationships with customers; make full use of the "95519" customer service hotline , standardize and strengthen complaints. The consultation function protects the vital interests of the insured at all times. l-October, there were 9,717 incoming customer calls and 7,212 outgoing calls. The incoming and outgoing calls increased by 96.43% and 74.M% respectively compared with 2002, meeting the various service needs of customers to the greatest extent.

(4) Major breakthroughs in structural reform

According to the unified arrangement and deployment of the joint-stock reform work of the head office, in the first half of 2003, the provincial branch achieved substantial separation of various businesses . During the restructuring process, we strengthened ideological and political work for employees and guided everyone to fully understand the significance of the joint-stock reform. Therefore, the majority of employees actively supported the reform, ensuring the stability of the team, creating a favorable environment for the smooth advancement of the reform, and laying a solid foundation for the smooth advancement of the reform. A solid foundation. While the business maintains sustained and steady development, there are still obvious gaps and problems that cannot be ignored. First, the overall business growth is slow. Although there has been a certain growth in business development in the first 10 months of 2000, and the total premium volume for the whole year is expected to be close to the planned target, there is still a large gap compared with the national system and peer companies. The fundamental reason is that Qinghai's economic aggregate is low, regional economic development is relatively lagging behind, and residents' income is low, which restricts the rapid development of the life insurance industry. At the same time, the public's awareness of insurance is not strong, people's understanding of commercial life insurance is not high, and publicity and services are not in place, which has affected the rapid development of the business to a certain extent. Second, the business structure is not reasonable. The proportion of county insurance business is high, and the proportion of short-term insurance business is low. The development of traditional business is slow, and premiums are mainly concentrated on a few dividend-sharing insurance types such as "Hongrui". Although the total volume has increased to a certain extent, the development potential is insufficient. Third, development among regions is extremely unbalanced. The premium income of three branches in Xining, Haidong and Haixi in the new industrial development zone in densely populated areas accounted for 94.24% of the total premium. The premium income of companies in other prefectures and counties only accounted for 5.76% of the total premium. The economic and natural environment is relatively poor. The development of poor agricultural and pastoral areas is relatively lagging behind, and the growth rate of premium income is obviously low.

2. Forecast of the life insurance market in 2003

In 2003, all life insurance companies insisted on development as their top priority and accelerated business development. The overall development trend of the life insurance market is good. It is predicted that the life insurance market in the province in 2003 will be Total premiums will reach 500 million yuan, a year-on-year growth rate of about 20%. China Life is expected to achieve premiums of approximately 370 million yuan, a year-on-year increase of 15% from the end of last year. The overall market share will account for 70%, a decrease of 8 percentage points from the previous year. ; Ping An Life Insurance is expected to achieve premiums of 150 million yuan, a year-on-year increase of 45%, and its market share is 30%, an increase of 8 percentage points from the end of last year.

(1) Favorable conditions

1. The economic support environment for the development of the life insurance industry is good. Since the beginning of the new century, with the rapid advancement of the Western Development Strategy, new vitality has been injected into the development of the Western Region. Qinghai's economy has shown a trend of steady growth. Especially since 2002, the development momentum has become stronger. In the first three quarters of 2002, the province's GDP grew by 11%, and the income and savings deposit balance of urban and rural residents increased significantly. It is foreseeable that Qinghai's economy will maintain rapid growth during the 10th Five-Year Plan and even longer, laying a good economic foundation for the rapid development of the life insurance industry.

2. Life insurance has a large space for development. It is predicted that the insurance penetration in moderately developed countries and domestic developed regions is generally about 4%, and the insurance density accounts for 5-6% of per capita income. Using this as a reference, Qinghai's insurance depth in 200 was 1.96, and its insurance density was only 128.76 yuan. It shows that the gap between Qinghai's insurance industry and advanced and developed regions is obvious, and there is still a lot of room for accelerating market development.

3. The competitive environment for life insurance is relatively loose. Currently, there are only two life insurance entities in Qinghai, China Life and Ping An Life. Although other life insurance companies will gradually enter the Qinghai market, the market entities will still be fewer than those in mainland provinces. Although my country has joined the WTO and the insurance market has been opened to the outside world, it will take time for foreign companies to enter Qinghai due to the country's gradual opening and step-by-step access strategy. At the same time, due to geographical restrictions and the impact of the humanistic environment, it will be difficult for foreign companies to enter Qinghai and develop the life insurance market for a certain period of time. Although fewer life insurance entities are not conducive to market competition, the insurance space is relatively large.

Taking advantage of the time gap when other life insurance companies have not yet entered the market or have a stable foothold to accelerate the development of existing life insurance companies, we can seize the opportunity in market competition, win the initiative, and accumulate strength. This is undoubtedly a great opportunity for Qinghai Branch of China Life Insurance Co., Ltd., which has a 54-year history of development and still dominates the Qinghai life insurance market, to accelerate its own development.

(2) Main factors restricting the development of the life insurance industry

l. The impact of the economic and humanistic environment. Qinghai is a province with large land and resources. It is also a province with a small population and a poor economy. Although the economy has shown rapid growth in recent years, the total economic volume is still very small, and the per capita production capacity and income are much lower than those in the eastern region. Backward productivity determines the low level of income, and low income determines the low level of the consumption structure, which in turn affects the formation of new consciousness and new concepts among residents. These are unlikely to change significantly in the short term. Low productivity levels will remain a prominent contradiction restricting the development of the life insurance industry for a certain period of time.

2. The impact of differences in tax rates and interest rates. First, in collecting commissions from insurance agents, although the state has increased the pre-tax deduction for individual agents’ personal income tax from the previous 15% to 25%, it still imposes double collection of personal income tax and business tax on individual agents, which directly affects the agents. Without enthusiasm, it is inevitable that agents will delay delivery of orders, which will affect the interests of customers and the company and cause certain operating risks. Second, because the original interest rates of insurance are basically synchronized with bank interest rates, the company has certain limitations in the products available to customers, especially various dividend products with strong investment properties, which are mostly sold to people with relatively affluent economies and The stable customer base will be difficult to extend to the vast number of farmers and herdsmen in a short period of time. Third, banks have lowered deposit interest rates eight times, causing significant interest and loss differentials in the insurance industry, which has a certain impact on the company's operating efficiency.

3. The impact of the social security system. Since the State Council's "Decision on Establishing a Basic Medical Insurance System for Employees" was issued at the end of 1998, the Qinghai Provincial Government has subsequently issued a series of supporting policies, clarifying the time and implementation standards for enterprises and institutions to participate in social basic medical care coordination. Although the demand for supplementary medical insurance and supplementary pension annuity insurance has gradually emerged from social security departments and enterprises and institutions participating in social basic medical care coordination, there are still problems that need to be solved urgently. First, the development of supplementary medical insurance is still in its initial stage in Qinghai. Although many contacts have been made, the number of insured persons is extremely small. Therefore, the excessively high health insurance loss rate has become a major confusion that plagues the company's operation and development. Second, the channels for reporting insurance premiums are not smooth, and many enterprises and institutions have given up on applying for supplementary medical or supplementary pension insurance for their employees. Third, Qinghai has not yet established a complete set of normative documents on supplementary medical care and supplementary pension security, which is detrimental to the expansion of commercial life insurance business.

4. The impact of horizontal competition. From January to October 2003, Qinghai China Life's premium income was 286.3772 million yuan, accounting for 70% of the life insurance market share. Ping An Life’s premium income is 120 million yuan, accounting for 30% of the life insurance market share. According to the revised Insurance Law, property and casualty insurance companies can operate accident insurance and short-term health insurance businesses, making market competition more intense. Compared with the end of 2002, Qinghai China Life's market share dropped by 8 percentage points. At the same time, other domestic life insurance companies are in the process of entering the Qinghai life insurance market due to market expansion needs. In the future, the number of life insurance entities in Qinghai will continue to increase, and market competition will no longer be as slow as in the past, but will become increasingly fierce. China Life's original advantages will be severely challenged, and business growth will slow down.

3. Countermeasures and Suggestions

According to Qinghai’s economic development environment and life insurance market development trends, especially the increasingly prominent role of building a well-off society in an all-round way and the development of the western region on Qinghai’s economic development , Qinghai China Life is expected to maintain a good development trend and a high growth rate. It is expected that the total premium volume in 2004 will exceed 600 million yuan, of which China Life will reach 420 million yuan and Ping An Life will reach 180 million yuan. The competitive focus of various life insurance companies will be risk-based life insurance products. Continuously optimizing the company's business structure, enhancing overall competitiveness, focusing on new long-term insurance policies, especially the growth of new individual insurance policies and installment business, as well as the growth of short-term insurance and other benefit insurance types, are still the common goals of each company in 2004. . To achieve the set goals, the following measures will be implemented.

(1) Enhance awareness of opportunities and accelerate business development

Currently, Qinghai’s insurance industry is in an important period of strategic opportunities for reform and development. The company’s joint-stock reform has injected new ideas into development. Vitality, the province's sustained and rapid economic development provides a broader space for the development of the life insurance industry. To this end, we must assess the situation, seize opportunities, constantly update concepts, further strengthen market concepts and competition awareness, and enhance the sense of responsibility and urgency for development. Effectively increase innovation efforts, give full play to the three business development channels of personal agency, employee direct sales and part-time agency, and strive to expand the life insurance market. First, strengthen brand awareness and vigorously develop direct sales business. Clarify the market positioning of the direct selling business, effectively treat the direct selling business as a business that builds brands, creates benefits, and increases strength, formulates development strategies, innovates business development methods, focuses on group annuities and group supplementary medical insurance, and concentrates efforts to increase support for large companies The public relations and publicity efforts of industries and large enterprises have been strengthened, and efforts have been made to expand large customers with market influence, so as to achieve great breakthroughs in the development of group business. The second is to speed up the process of professional operation and enhance the development potential of personal agency business. Promote the "Need-Based Sales (NBSS)" course introduced by China Life from the Life Insurance Marketing Association of America (LIM-RA) to all sales staff and the "Sales Performance Improvement Project" jointly researched by the head office and McKinsey, focusing on the regular payment business One of the results is the "Customer Demand Analysis and Product Portfolio Sales" course, which improves and enhances the professional skills of sales staff and the sales performance of regular payment business. According to the sales focus, we will formulate and improve the main product promotion plan, implement sales training support, fully implement the "product briefing" sales model, enhance market development capabilities, and ensure the leading position in the personal agency business. We will intensify employee training, strive to improve the passing rate of personal agent qualification examinations, establish a sizable and relatively stable agent team, and reserve talent and human resources for the sustainable development of the business. The third is to vigorously develop bank and postal agency businesses and cultivate new economic growth points. While consolidating the strong momentum of development of part-time agency business in Xining and other places, it is necessary to help branch companies with lagging development of this business to explore main business channels, identify business breakthroughs, try their best to narrow regional gaps, achieve total breakthroughs, and make part-time agency business become a The company's new business growth point.

(2) Optimize the business structure and improve economic benefits

Continue to strategically adjust the business structure, correctly handle the relationship between scale and speed, quality and efficiency, and maintain a certain development scale. At the same time, we will put the vigorous development of traditional life insurance business with good operating benefits in a more prominent position, promote the coordinated development of various businesses, complement each other with scale benefits, and maximize operating value. First, vigorously develop individual insurance regular payment business. Actively guide employees to focus on developing the regular payment business, improve and perfect the sales model, vigorously promote the sales mix of individual insurance products, strengthen agent activity management, increase the number of visits, and focus on cultivating and cultivating high-quality target customer groups. Choose, increase the average premium per piece and individual production capacity, and increase the proportion of regular payment business. The second is to vigorously develop short-term insurance. It is necessary to increase the sales of accident insurance and expand the sales channels of insurance products such as health insurance, academic insurance, aviation insurance, travel insurance, and driving insurance. The third is to vigorously promote the card folding business, explore new sources of security, and open up new business growth points.

(3) Implement scientific management to ensure stable operation

Operation and management must adapt to system changes as soon as possible and achieve scientific company operation. Institutionalization and standardization. First, adhere to institutional innovation, improve the management structure and personnel quality, optimize the organizational structure and personnel composition, and establish a capable and efficient operating organization and workforce. The second is to strengthen the development awareness, market awareness, quality awareness, cost awareness, efficiency awareness, regulatory awareness and management awareness of all employees, fully implement the budget management and business target performance appraisal system, and implement management responsibilities to companies at all levels. Every department and every employee makes employees truly the masters of enterprise management. The third is to strengthen the highly centralized and unified management of business and finance, further improve management efficiency, reduce operating costs, effectively prevent operating risks, and ensure stable operations. The fourth is to strictly implement the Insurance Law and other insurance regulations, improve the management system, conduct timely rectification of the life insurance market and major inspections of law enforcement and discipline, seriously investigate and punish violations of laws and regulations, and create a good business environment. The fifth is to strengthen the incentive and restraint mechanism. Improve and implement various management systems, competition planning and business development compliance management first person system and accountability system, reward the good and punish the bad, reward the diligent and punish the lazy, and improve the company's comprehensive management level.

(4) Focus on service innovation and enhance company credibility

Actively advocate new concepts of humanized and information-based services, and strive to form a new pattern of socialized and rational services. First of all, we should continue to improve the construction of the customer service system, fully implement the code of professional ethics for employees, truly build the service platform into a "civilized window", and expand the social influence of life insurance companies. Secondly, actively implement the "talent highland" strategy, continuously attract outstanding talents into the life insurance industry, establish a professional management team, improve service quality, actively explore potential customer needs, propose new consumption concepts, grasp the pulse of the market, and guide market trends. Satisfy customer needs to the greatest extent. Third, increase investment in capital and manpower, strive to improve information technology content and application capabilities, simplify business processes, improve work efficiency, and provide customers with standardized, fast and high-quality services. Fourth, comprehensively strengthen integrity construction, conscientiously do a good job in customer return visits and after-sales service, be people-oriented, be honest and trustworthy, fully reflect the forward-looking, long-term, full-process, policy and regulatory nature of insurance services, and use a good service brand and trustworthiness The brand image wins market returns.

(5) Strengthen coordination with government departments to create a good social environment for the development of the life insurance industry

As a supplement to social insurance, the role of commercial life insurance has become increasingly prominent, causing various level of government and business attention. However, affected by economic conditions, ideological concepts, etc., the public's awareness of insurance is not strong, insurance coverage is not high, and publicity is insufficient, and commercial life insurance is even classified as arbitrary charges. Therefore, it is necessary to strengthen communication and coordination with relevant government departments, seek support from local governments, create a good social environment for accelerating the development of the life insurance industry, and make more contributions to Qinghai's economic construction and the comprehensive realization of a well-off society.

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