The Competitiveness Comparison Of China And Korea Insurance And The Strategies For Korean Companies Develop In China

With the development of China's economy, Insurance has become more andmore important in serving the economy developing. 2006 is the second year thatChina Insurance opens to foreign countries while foreign invested insurancecompanies are developing rapidly with a positive prospect. It is an inevitable trendthat Korean insurance establishments step to Chinese market due to both China andKorea are Asian countries, Korean companies have advantages in resourcescomplementary, communication and corporation in stuffs and technologies. All thesefacts rocket Korean companies entering. During the past 10 years since diplomacyrelationship established, both countries enjoy progresses in cooperation anddevelopment.As reported, foreign invested insurance companies is enlarging their marketshare year by year. Until December 2005, their insurance fee reached 34.12 billionRMB, taking a proportion of 6.92%. China insurance market is surging with 20%increase annually. Regarding insurance fee as the statistic standard, it is forecastedthat China will become the 7th largest market in 2007, leading ahead of Korea. Withthe footstep that China insurance entering the totally-opened era, Korean insuranceundoubtedly will engage in China market. Samsung Life Insurance Co. Ltd. andSamsung Fire & Maine insurance Co. Ltd. have already started a business in China,while the other big-5s are also under planning. All of them have great confidence withChina insurance market and trying to lay out their business as soon as possible.The thesis, composed by three parts, aims to figure out the competitivenesscomparison between China and Korea insurance then put forward strategies forKorean companies.In the first part, the author focuses on analyzing competitiveness betweenChina and Korea insurance by comparing their reality competitiveness, potentialcompetitiveness and outer environment competitiveness in order to point outadvantages and disadvantages separately.In the second part, two insurance companies subsidized to Samsung Groupwere taken as a case. By SWOT analysis, it is obviously that Korean insurancecompanies are facing not only opportunities but also challenges on their way to Chinain future.Therefore, this writer puts on his suggestions in the third part as following.First and foremost, break out the account barriers formed by pioneer companies, keepboth product and service on innovating and differentiating. Then, achieve localizationand regionalization as soon as possible to penetrate each regional market and enlargebusiness territory. Thirdly, increase the efficiency of the companies' core marketingchannels which means to expand the network. Last but not least, insist on cultivatingmarketing professionals.