Orientation And Mode Of Operation Of Insurance Companies In The Enterprise Annuity Market Research

Since the middle age of 1980's, China has begun to establish the social fundamental pension system. In this system, the government, enterprises and individuals pay the costs of the pension system together. As a whole, development in the last decade is slow. Moreover, it faced lots of problems. With further impelling state-owned enterprises reform and the increase of average age for China, the deficit of social security fund has enlarged. To build up a healthy social pension system is very urgent.This article introduces the development course of enterprise annuity in our country and the definition of enterprise annuity, also confirming the qualities and characters of enterprise annuity. Essentially enterprise annuity is a kind of social welfare security system, the enterprise sets up and manage that by itself with the support from the government. It is a kind of pension insurance system between national fundamental pension insurance and individual commercial pension insurance. It is the second pillar of the society security system. Enterprise annuity has many functions such as revenue sharing, staff bestirring and pension security etc.. Through more than ten years development, the State Council and the MOLSS had enacted a series of laws and regulations,which provide laws foundation for the development of enterprise annuity. With the encouragement, support and induction of related policies, local enterprise annuity and industry enterprise annuity are developed. However, it's not much enough to establish a multi-level and multi-participator enterprise annuity system. In the next few years, the scale of the enterprise annuity asset will be much increased quickly. The enterprise annuity fund will play a more and more important role in the market with further policies support and encouragement. Not only insurance companies, but banks, trust companies, fund management companies, security companies, asset management companies and many other financial companies play a different role in the enterprise annuity market. Every financial player has its respective advantages, among which banks give an incomparably outstanding performance in running enterprise annuity, particularly as a trustee. Plus, trust policies enable the policies of enterprise annuity to have superiority in a general sense by the guarantee and flexibility of their featured property security. Likewise, fund management companies and security companies have become the best investment manager by their professional investment management capability.There might be two types of pattern in terms of enterprise annuity operation. One is in the form of intrusting; the other is in the form of insurance. However, from a legal point of view, the trust pattern might have better possibility due to its definitude of legal support. Although insurance companies might be a direct player in annuity market, they would come out with respective marketing tactics because of their different development strategies and organization form. In a word, both comprehensive insurance group and specialized life insurance companies should make good use of their respective business advantages on the basis of its own development strategies and organization form to define their role in the enterprise annuity marketplace in order to take advantage of this precious market opportunity to develop rapidly and to have a bigger market share in the enterprise annuity market.