Research On Evaluation Of The Partner Selection Of Bancassurance Strategic Alliance In China

Globalization of the economy promotes the globalization of finance. The infiltration between banking and insurance has become a trend due to accelerating economic globalization and financial deregulation. In recent years, in particular, the cooperation between commercial banks and insurance companies enjoyed rapid development and progress, and bancassurance has become an inevitable choice of the versatile and integrated financial industry. Bancassurance has three modes according to their levels:distribution agreement, strategic alliance and financial service group. Bancassurance in China has mainly adopted the distribution agreement mode. After more than ten years of development, however, disadvantages of this mode kept emerging. To solve this problem, banks and insurance companies in China are attaching increasing importance to strategic cooperation between each other. It is possible that a strategic alliance can create win-win opportunities for both banks and insurance companies, but in the real world there is also a high ratio of failure in strategic alliance, of which choosing an inappropriate partner is a main cause. A key factor to successful strategic alliance is to choose the appropriate strategic partner. Currently in the cooperation process between banks and insurance companies in China, the management has not attached enough importance to partner selection for strategic alliance of bancassurance, especially banks which are on a leading role adopt very limited ways while selecting insurance companies as strategic partners, which will lead to potential risks when the strategic alliance comes into effect. Therefore, the research on the selection of strategic partners of banks will provide reference for commercial banks in making a comprehensive and scientific selection of bancassurance strategic partners, and will play a key role in the sound development of bancassurance strategic alliance in China.This thesis follows the research method that goes from general to the specific and from the phenomenon to the essence. Compared with the experience of partner selection in bancassurance in other countries, this thesis analyzes and summarizes the status quo of bancasurance strategic alliance in China, and points out the existing problems in strategic partner selection in this area, including the lack of understanding of partners, limited consideration, and the emphasis on relationship. As a solution to the above-mentioned problems, this thesis selects evaluation standards for bancasurance strategic alliance in China based on standards of strategic partner selection of enterprises home and abroad, and reveals that banks can evaluate and select insurance companies in terms of their credibility, compatibility and capability. Finally it presents an index system for evaluation and partner selection for bancassurance strategic alliance in China from the perspective of banks, advises commercial banks to guard against rash decision in selecting insurance companies, and to make a comprehensive evaluation without too much emphasis on relationship. As to problems that might occur in applying the evaluation index system, this thesis also provides relevant suggestions on matrix-sampling, dealing with numbers of indexes, and amendments to index weight.