Research On The Development Of Bancassurance In China

Since the 1980s, the bancassurance as a financial product and the integration of a new institutional arrangement has become an important trend of international insurance industry. Speaking of the insurance industry, with the banking business growing, bancassurance has gradually become one of the three pillars of business development. Especially for the new principal who enters the life insurance market, it is the most important way to expand the scale by vigorously developing bancassurance business. For the banks, the bancassurance business provides financial channel for improving bank's profitability traditional structure and increasing business income. Therefore, it is a great practical significance to study the development of the bancassurance for Chinese finance.First, this paper makes a comprehensive description of the theory of bancassurance by researching the theory of the finance innovating and the system changing. That bancassurance as a product of system innovation is largely viewed as a new sales channel and business product and as a transformational process of and innovated organization model towards financial integration. Then, the paper reviewed the definition of bancassurance from the sale-channel theory,product-service theory,business-strategy theory and practice, and then try to give the definition of bancassurance.Second, the paper studied on the course of development of the West Bank and the Chinese national's bancassurance and extracted enlightenment from the development of West Bank on the bancassurance: bancassurance in western nations is an asymptotic process, the good legal environment, the regulatory environment and tax environment is the decisive external conditions for the development of the bancassurance systems. They are not only the foundation to the born of bancassurance but also affect the development of the bancassurance and the cooperation model between bank and insurance. Subsequently, the paper sorted the development stage of domestic and foreign bancassurance, and then concluded that the bancassurance from the initial phase to the advanced stage is the result of the game continued and choice.Third, this paper pointed two major factors which restricting the development of Chinese bancassurance from a macro view: Chinese more stringent system of the external environment and the bancassurance model are on low level. These two factors greatly hindered Chinese bancassurance in-depth development. Well, with the existing separated operating system environment, financial-holding company model has become the realistic choice for Chinese bancassurance to the further development, banks and insurance companies jointly controlled by the financial holding company ,but there is no control between them, which is in line with the operating independent of international bancassurance companies, more importantly, the adoption of the financial holding company can have a close cooperation between the bank and insurance company, the banks can fully be launched from the Group of Insurance truly strategic, this model can be in the monitoring system which is not a major change of circumstances, and promote Chinese banks and insurance to a smooth transition, and more adaptation with Chinese current level of regulation , minimizing the influence and impact to the current legal environment and regulatory system . At the end, this paper pointed that we should create an environment which is good for the healthy development of bancassurance system:The first, that gradually pushing forward comprehensive management of the financial industry is an inevitable choice to enhance our international competitiveness. Integrated operation is the inevitable result of financial innovation, globalization and the financial regulators to relax, that can enable financial institutions to make full use of its limited resources to achieve financial industry of scale and lower costs, increase profits, its competition of one-stop financial services will be benefit to the survival of the fittest, be benefit to improve the effectiveness and promote overall social utility in the country. After joining WTO, Chinese financial institutions will be directly facing the competition of foreign financial group; forcing financial companies seek to expand the scale and services, forcing financial services enterprises to improve their efficiency, making financial enterprises to go to integrated operations with inherent demands. To promote the comprehensive management of the bancassurance can break hampered of system constraints which are from the low level stage to the advanced stage, in order to promote the development of the bancassurance.The second, Speed up the establishment of mechanisms for monitoring. 1. Make "Financial Holding Company Law" as soon as possible, and clearly define the legal nature of the establishment, the business scope of internal management, and rules of conduct, regulation, and legal responsibilities of the financial holding company, at the same time strengthen the financial holding company, urge them to strengthen internal controls. 2. Improve the supervisory functions of the coordination mechanism will be conducive to the realization of the information sharing between the China Banking Regulatory Commission and China Insurance Regulatory Commission, be conducive to the promotion of financial innovation, strengthening financial supervision and preventing financial risks, in order to promote the healthy development of the financial holding company.The last, improving the tax environment. Tax concession is one of the major driving forces to the main operating taking part in the bancassurance industry. First, it can give concessions in income tax for bancassurance-related, at least not more than the tax rates of foreign insurance companies; Secondly, it should be given certain concessions in the sales tax; Third, the interest tax should remain on the tax concessions of bancassurance products capital gains.