Reform Of The Personal Marketing System In China's Life Insurance Industry

The personal marketing system in life insurance industry, which ischaracterized by the personal agents who carry out the selling of life insuranceproducts, has contributed a lot to the development of domestic life insuranceindustry since its first emergence in China and is still the dominant marketingsystem nowadays. In recent years, however, moreand more doubts andcriticisms on the system have come out as a result that more and more sharpproblems arise from market operation. Meanwhile, theoretical discussions andpractice innovations focusing on the reform of personal marketing system of lifeinsurance are in progress as well. By comprehensively adopting the relatedtheories of service marketing and institutional economics, and on the basis of aconscientious review of the successful experience and lessons in this fieldhome and abroad, the author suggests that the domestic life insurance industry isin the primary stage of development and in a market environment far fromperfect. Considering the actual conditions of China, we should keep the personalmarketing system improving instead of abandoning it lightly. Therefore, thepersonal marketing system of life insurance needs to be reformed progressivelyfrom the aspects of the formal constraints, informal constraints and enforcementmechanism. The key points of the reform lie in a better system balance between personal agents and life insurance companies, and in a strengthenedmanagement of and support for personal agents, so as to make full use of thepersonal marketing system.