The Promotion And Application Of Consultative Selling In China Life Insurance Companies

Since the personal agent system of American International Assurance Life was introduced into China in 1992, China's life insurance companies began to focus on both internal management and product marketing. Based on the insurance marketing theory which is "as customers do not take the initiative to purchase the non-desire of insurance products, insurance companies must take the initiative to promote and actively promote the use of a series of effective marketing and promotional tools to stimulate people to buy", the domestic life insurance companies have used the convince-to-buy model to purchase insurance products sales. This model showed great vitality in China and promote the scale of China's insurance premiums rapidly. However, with continuous innovation and complexity of our insurance products, as well as customers' increasingly knowledge of insurance products and diversified needs, it turned to be more and more difficult for life insurance agents to sell through using this model. And the strong way of sales under "marketing concept" revealed the risk of sales gradually, and there were events like misleading, fraud which were detrimental to the insurance company or even vicious the entire insurance industry. Therefore, it's strongly needed right now to promote the change of concept of product sales of life insurance companies and to develop China's life insurance sales approach. The customer-oriented consultative selling model, as a new marketing ideas and methods, has showed it's significant advantage in a complex product sales and development on high-end customers comparing with the traditional mode of product marketing. Consultative selling model has aroused the concern of life insurance companies, but with the exception of the few foreign life insurance companies trying to apply, the majority of life insurance companies are still in a state of watching. In this context, the promotion and application of consultative selling in China Life Insurance Companies, will be the event with more profound practical significance both for the sustainable development of China's insurance industry or the evolution of marketing theory of the insurance. This paper analyzes and discusses the necessity of consultative marketing mode and reform measures to establish operation system of consultative marketing mode in Chinese life insurance companies. The idea in this paper directs not only the development of selling mode, but also the establishment and completion of modern product marketing system in Chinese life insurance companies. The main purpose of this paper is:Encourage Chinese insurance companies especially the decision maker to change life insurance marketing concept. Enhance Chinese insurance companies to understand the advantage and running mode of consultative marketing mode. Promote Chinese insurance companies to reform traditional marketing mode. Realize the extending and implementation of consultative marketing mode in Chinese insurance companies. Establish the operation system of consultative marketing mode finally. Market research, literature research methods and lessons learned approach are used as major research methods in this paper. The breakthrough innovation of this paper is to discuss the reform measures to be taken to establish the operation system of consultative marketing which can lead Chinese insurance companies from the applicability discussion of consultative marketing mode to the discussion of more realistic reform measures.This paper is divided into five parts. In the first part, the analyses of backgrounds and significance of the consultative selling promotion and application in China's life insurance companies are discussed. In the second part, the basic theory, characteristics of the consultative selling model and differences with the traditional sales model are discussed. In the third part, based on disadvantages of persuasive selling model and advantages of consultative selling model, the necessity of consultative selling model is discussed in China's life insurance companies. In fourth part, reformation measures to apply consultative selling situation is elaborated in China's life insurance companies. In the fifth, based on application of consultative selling model in A, promotion and application prospect of consultative model is forecasted in China's life insurance Companies. The paper concludes that a consultative selling model is needed to sell life insurance products in China's life insurance companies. China's life insurance companies should actively carry out relevant institutional reforms, promoting consultative selling model in China Life Insurance Company.