Multinational Insurance Companies And Countermeasures Of China's Insurance Industry

Since 1990's,transnational corporations in the financial industry ,especially insurance industry ,directly invest in China. The phenomenon has relations with the reform and open-door policy in financial industry , especially , after China's entrance into the World Trade Organization.At present, the relationship between China and the other world economic becomes closer and closer .In reality, the world-wide marketing strategy for the transnational insurance company becomes stronger and stronger. While our national industry is an infant industry, that's why transnational insurance corporation can speed quickly in our national insurance market and bring challenge to our national insurance industry. . Now, the entrance of foreign insurance companies to china has promoted Chinese insurance industry development. Being a new comer in the world trade organization. China began to combine with the world .At the same time, the influences and impact from transnational insurance company are huge . Owing to this ,we explained the reason and the conditions of transnational insurance industries entering Chinese insurance field by applying the compromised theories in international production from the angle of Chinese insurance industry . .As part of transnational insurance direct investment. foreign capital's in Chinese insurance industry has its own characteristics , .the text thoroughlyanalyzes the present condition of transnational insurance company's entrance to the Chinese insurance industry. The reasons why transnational companies select direct investment in our insurance industry haste many answers ,Mr Duning' s hypothesis is the perfect one , I think .By locating in a foreign country, the transnational insurance company extends itself to the new location in ways which go well beyond the mere transfer of capital. Dunning(1973)has hypothesized that a proper evaluation of UK memsbership of the EEC could arrived at only by considering trade and foreign productions as alternative forms of international involvement in terms of ownership-specific and location-specific advantages, and internalization advantages . Dunning formulated these three groups of comparative advantages into his principle hypothesis: given the possession of net ownership advantage over the local firms , the most heneficial development is for the multinational corporation to internalize them by extending its own activities; it must then be more profitable for the transnational corporations to combine these internalized advantages with some factor inputs in some foreign countries, otherwise foreingn markets would be served .entirely by exports and home-markets by home production. At last, we also put forward several proposals : on the macroeconomic 1 angle, the tactic construction management arrangement and nationalization should be used in Chinese insurance companieso Entranceto other countries' insurance fields, on the microcosmic angle, Chinese national insurance companies should change their marketing ideas and service methods, developing a promotional strategy to ensure a satisfactory level of service.