The year 2003 was a year of significant progress in the institutional reform of life insurance companies, with the reorganization of China Life Insurance Company into China Life Insurance (Group) Company and China Life Insurance Company Limited formally listed on August 28th. As a branch of China Life, Qinghai Branch, guided by the spirit of the 16th National Congress of the People's Republic of China and the important thought of "Three Represents", adhering to the enterprise tenet of honesty and sound operation, grasping the historical opportunity of the development of western China, reforming and innovating, and striving to open up the market, the company has achieved significant results in the reorganization and restructuring at a stage while maintaining a sustained and healthy development of its business. The reorganization and restructuring of the company has achieved significant milestones, China Life Insurance Company Limited Qinghai Branch was officially inaugurated on October 19 (hereinafter referred to as the provincial life insurance company), the new company will fully grasp the rare historical opportunities, firmly grasp the market opportunities, accelerate the pace of development, and make more contributions to the comprehensive construction of a moderately prosperous society in Qinghai.
One, the life insurance industry in 2003 to develop the situation
(a) the steady development of the business
In 2003, the province's life insurance business continued to develop rapidly, the accelerated expansion of the same company more intense competition, with-profits insurance continues to be a hot seller, high-speed development of the bank insurance business, the group insurance business has a relatively large decline. As of the end of October, the province's life insurance premium income of 406,377,200 yuan, of which, China Life provincial branch premium income of 286,377,200 yuan, an increase of 12.13%, accounting for 70% of the province's life insurance market share, and continue to maintain the dominant position in the market. Ping An life insurance premium income of 120 million yuan, market share of 30%, compared with the end of 2002 rose 8 percentage points, mainly through the expansion of bank insurance to achieve the market share climb. 200 early, the provincial life insurance company set the annual premium income to achieve the goal of 370 million yuan. Focusing on this goal, combined with the actual situation of Qinghai, the provincial life insurance company based on the occupation of the market, to deal with competition, enhance the strength of the work as a starting point, focusing on development, laying the foundation, expanding the total amount, increasing the strength of all levels of the company to break down the task at all levels, and to strive for the initiative, to overcome the adverse impact of SARS on the development of business, to organize the entire staff to implement countermeasures, to broaden the development of the business, and to strengthen the development of the company. The company at all levels broke down tasks at each level, made real efforts, took the initiative, overcame the negative impact of SARS on business development, and organized all staff to implement countermeasures, broaden business channels and minimize losses; the company also launched a phased plan and the "Pioneer of the River Source" in due course. "Spring Walk", "100 Days of Competition for Accident Insurance", "100 Days of Competition for Group Insurance" and other business competitions to promote the coordinated development of various businesses; according to the market demand, successively launched the According to the market demand, we have launched five new types of insurance, such as State Life Hongts two full (participating) insurance, Yongtai annuity, Hongtai two full, etc., which have been welcomed by customers; we have changed the traditional sales method, implemented and innovated life insurance product explanation meeting, and realized the rapid development of individual agency business; we have increased the public relations and propaganda efforts for large industries and enterprises, and strengthened communication and coordination with banks and the postal service, so that we can achieve a new breakthrough in the business of part-time agency, and as of the end of October, the premium receipts of part-time agency business amounted to 5,500 thousand yuan. As of the end of October, the premium collection of part-time agency business amounted to 55 million yuan, an increase of 580% year-on-year; the company continued to vigorously promote the business development strategy of "three points and one line" mainly in Xining, Haidong, Golmud, and the surrounding areas of the Qinghai-Tibet Railway, and played the role of backbone of the large companies in business development by grasping the big and supporting the strong, which strongly promoted the sustained and steady development of the business.
(2) Strengthening of Operation and Management
With the improvement of operation and efficiency as the center, the Company enhanced its operation and management as well as the promotion and application of information technology, ensured the authenticity of business and financial data, and improved the work efficiency and management effectiveness. It has further expanded the scope of centralized management of business and finance to achieve centralized and unified management at the provincial level; established and perfected the underwriting and compensation system suitable for the actual situation in Qinghai, and implemented classified management and graded underwriting and compensation to enhance the ability to prevent business risks. By the end of October, the company had paid out a total of 37.73 million yuan in claims, contributing to the economic and social development of Qinghai and the stabilization of people's lives. Through strict auditing, 54 cases of refusal to pay claims were investigated and dealt with, reducing the amount of compensation and payment by 645,500 yuan. Implemented comprehensive budget management and classification and grading performance appraisal methods, as well as expense budget management methods, and increased centralized management of funds. The company also launched a new Insurance Law study and publicity campaign to strengthen employees' awareness of the legal system and their conscientiousness in operating in compliance with the law.
(3) Customer service is becoming more standardized
In order to enhance service quality and strengthen the company's market competitiveness, the provincial life insurance company has set up a customer service center, established a customer service department in the branches under its jurisdiction, perfected the customer service system, improved the rules and regulations and comprehensively implemented the customer service management methods, and strengthened the awareness of the entire staff of the service consciousness and the sense of integrity. Under the premise of ensuring that the management is in place, the company simplifies the business process, improves the service efficiency, ensures that the claims are settled and paid on schedule, and realizes the full service of life insurance; it earnestly implements the system of customer return visit, and closes the relationship with the customers; it makes full use of the "95519" customer service hotline, and standardizes and strengthens the complaint and consultation functions. Consultation function, everywhere to protect the insured's interests. l-October, access to customer calls 9,717 cases, outgoing 7,212 cases, access, outgoing volume than in 2002 increased 96.43% and 74.M%, to maximize to meet the customer's needs for a variety of services.
(4) Significant breakthrough in institutional reform
According to the unified arrangement and deployment of the shareholding reform work of the head office, in the first half of 2003, the provincial branch realized the substantial separation of various businesses. In the process of restructuring, due to the strengthening of the ideological and political work of the staff, guiding everyone to fully understand the significance of the shareholding reform, thus, the majority of employees actively support the reform, to ensure the stability of the team, for the smooth progress of the reform has created a favorable environment and laid a solid foundation. While the business maintains continuous and steady development, there are still obvious gaps and problems that cannot be ignored. First, the overall business growth is slow. Although there was a certain increase in business development in the first 10 months of 200, and it is expected that the total premium for the year will be close to the planned target, there is a big gap compared with the national system and peer companies. The fundamental reason for this is the low economic output of Qinghai, the relative lag in regional economic development and the low income of residents, which restricts the rapid development of the life insurance industry. At the same time, the public awareness of insurance is not strong, people do not have a high degree of understanding of commercial life insurance, and publicity and services are not in place, which to a certain extent affects the rapid development of the business. Second, the business structure is not reasonable. The proportion of the county business is on the high side, the proportion of the short-term insurance business is on the low side, the development of the traditional business is slow, and the premiums are mainly concentrated on a few types of participating insurance such as "Hongrui", and although the total amount of the business has increased to a certain extent, the development of the latter is not strong enough. Thirdly, the development among regions was extremely unbalanced. Densely populated areas of Xining, Haidong and new industrial development zones in Haixi three branches of the premium income accounted for 94.24% of the total premiums, the rest of the state and county companies only accounted for premium receipts of the total premiums of 5.76% of the economic and natural environment of the agricultural and animal husbandry areas of the development of the relative lagging behind, the increase in premiums is significantly lower.
Two, 2003 life insurance market forecast
In 2003, life insurance companies adhere to the development is the first priority, accelerate business development, life insurance market development trend is good, predicted that in 2003 the province's total life insurance premiums will reach 500 million yuan, the year-on-year growth rate of 20% or so, it is expected that the China Life roughly can be realized premiums of 37,000,000 yuan, an increase of 15% compared with last year. China Life is expected to realize premiums of 370 million yuan, a year-on-year growth of about 20%. China Life is expected to realize premiums of 370 million yuan, a year-on-year growth of about 15%, with an overall market share of 70%, a decline of 8 percentage points from the previous year.
(I) favorable conditions
1, life insurance industry development of economic support environment is good. Since entering the new century, with the rapid advancement of the western development strategy, injecting new vitality into the development of the west, the economy of Qinghai has shown steady growth, especially since 2002, the momentum of development has been more powerful. in the first three quarters of 2002, the province's GDP growth of 11%, urban and rural residents' incomes and the balance of savings deposits increased significantly. It can be foreseen that in the tenth five-year plan and even longer period, Qinghai economy will maintain the momentum of rapid growth, for the rapid development of life insurance industry has laid a good economic foundation.
2. There is a large space for the development of life insurance. It is predicted that the depth of insurance in medium developed countries and domestic developed areas is generally about 4%, and the density of insurance accounted for 5-6% of per capita income. Taking this as a reference, the depth of insurance in Qinghai in 200 years was 1.96, and the density of insurance was only 128.76 yuan. This shows that the gap between Qinghai's insurance industry and advanced developed regions is obvious, and there is still much room for accelerating market development.
3, life insurance competition environment is relatively loose. At present, there are only two main life insurance companies in Qinghai, namely, China Life and Ping An Life. Although other life insurance companies will enter the Qinghai market one after another, the main market will still be less than the mainland provinces and regions. Although China's accession to the WTO, the insurance market has been opened to the outside world, but due to the gradual opening up of the country, step by step access strategy, foreign companies to enter Qinghai is still waiting for time. At the same time, foreign companies are still difficult to enter Qinghai to open up the life insurance market within a certain period of time due to the restrictions of geographical conditions and the influence of the human environment. Although fewer life insurance companies are not conducive to market competition, there is relatively more space for insurance. Borrowing other life insurance companies have not yet entered or based on the unstable time gap to speed up the development of existing life insurance enterprises, can seize the first opportunity in the market competition, win the initiative, build up strength. This has a 54-year history of development, life insurance market in Qinghai is still dominant in China Life Insurance Company Limited Qinghai Branch, is undoubtedly a good time to accelerate their own development.
(2) the main factors restricting the development of the life insurance industry
l, the impact of the economic and human environment. Qinghai is a large province of land and resources. It is also a small province with small population and poor economy. Although the economy has shown rapid growth momentum in recent years, the total economic volume is still very small, and the per capita production capacity and income are much lower than that of the eastern region. Backward productivity determines the low level of income, low income determines the low level of consumption structure, which in turn affects the formation of new consciousness and new ideas of the residents. These in the short term is difficult to have a major change. The low level of productivity in a certain period of time is still a more prominent contradiction that restricts the development of life insurance industry.
2, the impact of tax rates, interest rate differences. First, the state of the insurance agent's commission, although the individual agent's personal income tax deduction before tax from the previous 15% to 25%, but the implementation of the individual agent to double the collection of personal income tax and business tax, a direct impact on the agent's motivation, the inevitable agent postponed the delivery of a single and other phenomena, affecting the interests of the customer and the company, resulting in a certain degree of business risk. Secondly, due to the insurance original interest rate with the basic synchronization of bank interest rates, the company has certain limitations on the products available to customers, especially the strong investment in a variety of dividend products, the object of sales are mostly concentrated in the more affluent and stable economic customer base, within a short period of time is difficult to extend to the majority of farmers and herdsmen in the masses. Third, the bank 8 times to reduce the deposit rate, so that the insurance industry, there is a significant profit and loss differential, the company's operating efficiency has a certain impact.
3, the impact of the social security system. Since the end of 1998, the State Council's "decision on the establishment of a basic medical insurance system for employees" issued, the Qinghai Provincial Government subsequently introduced a series of supporting policies, clear enterprises and institutions to participate in the basic social medical co-ordination of the time and the implementation of standards. Although the social security sector and enterprises and institutions participating in social basic medical co-ordination have gradually developed a demand for supplementary medical insurance and supplementary pension annuity insurance, there are still problems that need to be resolved. Firstly, the development of supplementary medical insurance is still in its initial stage in Qinghai, and although it has been approached many times, the participation surface is extremely small. As a result, the high rate of health insurance claims has been a major confusion plaguing the company's operation and development. Secondly, the channels for insurance premiums to be charged are not smooth, and many enterprises and public institutions have given up applying for supplemental medical or supplemental pension insurance for their employees. Thirdly, Qinghai has not yet established a complete set of standardized documents on supplementary medical and pension insurance, which is not conducive to the expansion of commercial life insurance.
4, the impact of competition in the same industry. January to October 2003, Qinghai State Life premium income of 286,377,200 yuan, accounting for 70% of the life insurance market share. Ping An Life's premium income was 120 million yuan, accounting for 30% of the life insurance market share. According to the amended Insurance Law, property insurance companies can operate accident insurance and short-term health insurance business, which makes the market competition more intense. Compared with the end of 2002, Qinghai National Life's market share dropped by 8 percentage points. Meanwhile, other domestic life insurance companies are in the need of market expansion and are proceeding to enter the Qinghai life insurance market. In the future, the main body of life insurance in Qinghai will increase one after another, the market competition is no longer as slow as in the past, but increasingly fierce, the original advantage of the State Life Company has been severely challenged, and the business growth will be slowed down.
Third, countermeasures and suggestions
Based on the economic development environment of Qinghai and the development trend of life insurance market, especially the comprehensive construction of a moderately prosperous society and the development of the western region of Qinghai's economic development of the pulling effect of the increasing role of the project, it is expected that Qinghai National Life Company will maintain a good development trend and a high growth rate, it is expected that the total amount of premiums in 2004 will break through 600 million yuan, of which, China Life China Life will reach 420 million yuan and Ping An Life will reach 180 million yuan. The focus of competition among life insurance companies will be on risk-based life insurance products. Continuously optimizing the company's business structure, enhancing overall competitiveness, and focusing on the growth of new long term insurance policies, especially the growth of new term payment business of individual insurance policies, as well as the growth of short term insurance and other efficiency insurance products, will remain the *** same objectives of each company in 2004. The following measures will be implemented to achieve the set objectives.
(I) Enhance the sense of opportunity and accelerate business development
Currently, Qinghai insurance industry is in a period of important strategic opportunities for reform and development, the company's shareholding reform has injected new vitality into the development of the province's sustained and rapid economic development for the development of the life insurance industry provides a broader space. For this reason, it is necessary to take stock of the situation, seize the opportunity, constantly update the concept, further strengthen the market concept and competition awareness, and enhance the sense of responsibility and urgency for development. We will effectively increase innovation, give full play to the role of individual agents, employee direct sales and part-time agents, and try our best to expand the life insurance market. First, strengthen brand awareness and vigorously develop direct sales business. We will clearly define the market positioning of the direct sales business, treat the direct sales business as a brand, create benefits and increase strength, formulate development strategies, innovate business development methods, focus on group annuities and group supplemental medical insurance, concentrate on increasing public relations and publicity for large industries and enterprises, and strive to expand large customers with market influence, so as to make a major breakthrough in the development of the group business. Secondly, we accelerated the process of specialization and strengthened the development momentum of individual agency business. Promote the "Demand-Based Sales (NBSS)" course introduced by China Life from the Life Insurance Marketing Association of America (LIM-RA) and the "Sales Performance Improvement Project", which is one of the results of the "Sales Performance Improvement Project", which is based on the pre-payment business, and which was researched by the head office in cooperation with McKinsey & Company. "We have also developed the "Customer Needs Analysis and Product Mix Selling" course, which is one of the results of the cooperation between our head office and McKinsey, to improve the professional skills of our sales staff and the sales performance of our contributory business. In addition, we developed and improved our main product promotion program based on our sales priorities, implemented sales training support, and fully implemented the "product briefing" sales model to enhance our market development capabilities and ensure our dominant position in the individual agency business. We have also increased training efforts to increase the number of agents, strived to improve the qualification rate of individual agents, and established a relatively stable team of agents of a considerable size, so as to reserve talents and human resources for the sustainable development of the business. Third, vigorously develop the banking and postal agency business to cultivate new economic growth points. To consolidate the strong momentum of Xining and other places in the development of the agency business at the same time, to help the lagging development of the business of the branch company to explore the main channels of business, to find business breakthroughs, and try to narrow the gap between the regions, to achieve a breakthrough in the total amount of the agency business, so that the agency business has become the company's new business growth point.
(2) Optimizing business structure and improving economic efficiency
Continuing with the strategic adjustment of business structure, correctly dealing with the relationship between scale and speed, quality and efficiency, while maintaining a certain scale of development, the Company will vigorously develop its traditional life insurance business with better operating efficiency and place it in a more prominent position, so as to promote the coordinated development of various businesses, complement each other in terms of scale and efficiency, and maximize the value of its operations. Maximization of operating value. Firstly, we are vigorously developing the term payment business of individual insurance. We actively guided our employees to focus on the development of term insurance business, improved and perfected the sales model, vigorously promoted the sales mix of individual insurance products, strengthened the management of agents' activities, increased the number of visits, emphasized the cultivation and selection of high-quality target customer groups, increased the average piece premium and individual capacity, and increased the proportion of term insurance business. Second, vigorously develop short-term insurance. We should increase the sales of accident insurance and broaden the sales channels of health insurance, school level insurance, aviation insurance, travel insurance, driving insurance and other insurance products. Thirdly, we will vigorously promote the card-folding business to explore new sources of insurance and open up new business growth points.
(C) the implementation of scientific management to ensure sound operation
Operation and management should be adapted as soon as possible to the transformation of the system to achieve the scientific operation of the company. Institutionalization and standardization. First, adhere to institutional innovation, improve the management structure and quality of personnel, to achieve the optimal organization of the institutional setup and personnel composition, the establishment of lean, efficient business institutions and workforce. The second is to strengthen the development consciousness, market consciousness, quality consciousness, cost consciousness, efficiency consciousness, regulatory consciousness and management consciousness of the whole staff, fully implement the budget management and business target performance appraisal system, and implement the management responsibility to all levels of the company. Each department and each employee, so that the workers really become the master of enterprise management. Thirdly, we will strengthen the highly centralized and unified management of business and finance to further improve management effectiveness, reduce operating costs, effectively prevent business risks and ensure sound operation. Fourthly, we will strictly implement the Insurance Law and other insurance regulations, improve the management system, carry out life insurance market cleanup and reorganization and law enforcement and discipline inspections in a timely manner, seriously investigate and deal with illegal and unethical behaviors, and create a good business environment. Fifth, strengthening the incentive and restraint mechanism. Improve and implement the management system, competition planning and business development compliance and operation of the first person responsible for the system and accountability system, reward excellence and penalize poor, reward diligence and penalize laziness, to improve the company's overall management level.
(D) focus on service innovation, enhance the company's credibility
Actively advocate the new concept of humane, information-based services, and strive to form a new pattern of socialized, rationalized services. Firstly, we will continue to improve the construction of customer service system, fully implement the code of ethics for employees, and make the service platform a real "civilized window" to expand the social influence of the life insurance company. Secondly, we will actively implement the strategy of "Talent Highland", continue to attract outstanding talents to enter the life insurance industry, establish a professional management team, improve service quality, actively explore the potential needs of customers, put forward new consumer concepts, grasp the pulse of the market, guide the market trend, and maximize the satisfaction of customer needs. Thirdly, we will increase investment in capital and manpower, strive to improve the content and application of information technology, simplify business processes, improve work efficiency, and provide customers with standardized and fast quality services. Fourthly, we will comprehensively strengthen the construction of integrity, seriously do a good job in customer visits and after-sales service, people-oriented, sincere and trustworthy, fully reflecting the forward-looking, long-term, full range of insurance services, policies and regulations, and win market returns with a good service brand and a trustworthy brand image.
(E) Strengthen coordination with government departments to create a favorable 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, attracting the attention of governments and enterprises at all levels. However, affected by economic conditions, ideological concepts, etc., the public's awareness of insurance is not strong, the coverage of insurance is not yet high, coupled with insufficient publicity, and even commercial life insurance is classified as indiscriminate charging. Therefore, it is necessary to strengthen the communication and coordination with the relevant government departments and seek the support of the local government to create a good social environment for accelerating the development of the life insurance industry, and to make more contributions to the economic construction of Qinghai and the comprehensive realization of a moderately prosperous society.
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