Study On Talents Strategy Of Life Insurance In China

As the insurance industry in China sees a fast growth and a fierce competition, the issue of human resource draws attention not only from the industry itself but also from the public. Starting from a case study of a parent company and its subsidiary, the research on the life insurance industry reveals that the practice of people management neither takes all the influencing factors into consideration, nor draws from the experience of top-tier financial groups despite the fact that China Life Insurance (Group) and China Life Insurance Company Limited has worked out strategies reflecting their own propositions. Actually a well-conceived strategy should be developed with concerted efforts as the insurance industry is mainly consisted of regulator, parent company and its subsidiaries. The dissertation makes endeavor to lay out a talent strategy for the insurance industry from a holistic approach.Expounding issues on a talent strategy’s objective, principle, focus and practice, the dissertation finds a solution to boost a fast and healthy growth in line with a current situation and a future trend of the insurance industry. At the same time, the dissertation maps out a strategy corresponding to the industry’s development stage by addressing the issues on the supply, structure and management of the human resources.The author chooses China Life Group and China Life Limited in a case study as China Life’s parent company and its subsidiary are representatives of Chinese insurance industry. Reviewing the development strategy and the status quo of the human resources in scrutiny, the author believes that there is much room for improvement in terms of a talent strategy of China Life Group if it intends to build into an international insurance-based financial service provider, compared with top financial companies in the world and Ping’an Group in China. The benchmark analysis of employees’demography and management makes clear of China Life Group’s objective and principles for a talent strategy which will meet the demands of China Life in striving for a global top financial group. In the same vein, China Life Limited’s talent strategy is substantial in content but unclear in vision. The company doesn’t have a market-oriented system and performance-driven distribution to recruit, select and motivate people, leading to inefficiency, non-cooperative game and incentive incompatibility. Drawing from Ping’an Group and Swiss Life Group, China Life should prioritize efficiency over authority in building an incentive compatible system of people’s management, development, appraisal and motivation, which can reflect its talent strategy serving for the aim of a world-class life insurance company.The implementation of a strategy should engage the concerted contributions from government, educational institutes and insurance companies as human resource development is a systematic project with a variety of participants. The program’s design and practice has different working methods and therefore takes on a variety of performances. As such, the efforts of the educational and insurance service providers as well as the government’s support are indispensable to the road of success.It is undeniable that the parent company and its subsidiaries in China have accumulated experience for developing high-quality and above-average employees. Much of knowledge and experience have translated into a standard of operation in a written and formal regulation, laying a good foundation for an all-round advancement of human resources. At the same time, we have to take an innovative approach to develop talents from within. An internal growing model can improve the employee’s core competitiveness.The research endeavors to offer a practical solution to issues in reality rather than outline a theoretical framework. The author believes that "Three distrusts"(The distrust of life insurance from the client, the employee and sales people, and the society in general) will be addressed through improving people management, building a benevolent environment and winning the client’s support. Meanwhile, the dissertation has a far-reaching historic implication as the author calls for a development of a life insurance industry in a direction of marketization, professionalism and international standardization and places high expectation on the potentials of this sunrise industry against the backdrop of deepening globalization and reform and open-up in a new age.The study explores four areas with an innovative approach. First of all, the author draws up a talent strategy and proposes a practice to manage people and develop their potentials. The strategy and practice is justified by an industry analysis and the case study of a parent company and its subsidiary.Secondly, the author uses Nash’s equilibrium economic theory to give an insight into the main issues of the life insurance companies and accordingly offers valuable suggestions to break the growth bottleneck.Thirdly, the author emphasizes the interdependence of the industry, the parent company and its subsidiary and maps out an all-compassing program to implement their talent strategies.Last, the dissertation proposes a model of developing the talents and professionals internally by researching on a practice of the industry, the parent company and its subsidiary in terms of human resource management.