Study On Collaboration Model Of China's Bancassurance

Bancassurance in its simplest explanation means the distribution of insurance products through a bank's distribution channels. In China, Bancassurance is still at an early stage; but it is playing a more and more important role. The popular practice model of bancassurance is Sales Agreement between the Insurance Companies and the banks. Compared to practical results of the mature model in western countries, our model contains a lot of problems which will bring adverse influences on the development of the bancassurance business. Under the circumstances of prohibition of operation across the industries between Banking and Insurance, how to find out the most reasonable and effective model for our bancassurance is a big issue.This article contains five parts:Part1: Explain the meaning of Bancassurance, its history of development and its function. Illustrate the background of the problem of collaboration model.Part2: Introduce the popular model-Sales Agreement and explorethe relative problems contained.Part3: Analyze four collaboration models applied in western countries and find out that the most suitable model for our Bancassurance collaboration is Strategic Alliance.Part4: The Operation and management of Strategic Alliance.Part5: Case study on Taiping-ICBC's collaboration model.The conclusion of this article is under the existing policy andfinancial circumstance, the effective model for Bancassurance business in China is Strategic Alliance.