Studies On The Problem Of Hidden Barriers And Trend Of Chinese Insurance Brokerage Industry

The modern insurance industry development practice shows that the insuranceintermediary is an indispensable important part of the insurance market. Itsdevelopment is the certain result of deepening this industry. Insurance agent, who asone of the three intermediates, is not only the communication bridge and link betweenboth parts but also the key roles for marketing and can never be replaced.At present insurance brokerage industry operating characteristics in China are:Concentrate on high industry; Business income ranking for fine-tuning. Marketdifferentiation is obvious; Shareholder type company leading the way. Various featuresfully show that there are many serious hidden barriers for insurance brokerage industryin our country. What’s more, these barriers affect the development of this industryseriously. First, establish many kinds of authorities to attract large companies, resultingto the extensive operating way; Second, brokerage business appear polarizationcharacteristics, namely business polarization and business source homogeneity; Third,company can’t be specialized, lacking the support of professional technical andprofessional talents; Fourth, industry of marketization progress is slow so that socialcapital is difficult to enter the insurance brokerage industry without reasonable marketcompetition mechanism. Fifth, insurance brokers may have some moral hazard.In our country, the hidden barrier of insurance brokerage industry has its deeprealistic root. First of all, the industry operating system results that the brokeragecompanies rely too much on big shareholders from the beginning and establish somehidden barriers, which is the historic and realistic reason for hidden barriers. Second,from the research of economy, all insurance brokerage companies no matter existed ornew set both have big motivation to establish the hidden barriers, which is thetheoretical reason.Although some scholars and experts from different sides mentioned the hiddenbarriers in insurance brokerage industry in China, but the government and insuranceregulators didn’t focus enough or set any improving regulations. For the reasons, on onehand, the supervision authorities did not understand the serious effect of the hiddenbarriers. On the other hand, they can’t realize the change trend of hidden barriers ontime. So this article analysis the status of hidden barriers and its change trend in detail,analysis in3respects, including globally, regionally and business formation. First of all,shareholder background affects little on the income of the insurance companies but it’s importance rises obviously. That means the severity of hidden barriers is not very highglobally but the trend rises. Secondly, from regional analysis of hidden barriers, centraland west region is much higher that the east and the trend in all regions rise. Finally,from the insurance market for different industries, the hidden barriers of constructionindustries is high than others and the barriers are more stable than the insurance market.Judging from the up analysis, the writer thinks that the main reasons are asfollowed: the marketing level is so low in China; marketing players are too few; thecompetition system is not perfect. Meanwhile, insurance companies occupy too littlecapital; the development way is too outdated; the specialization level is not very highand the policies are not perfect. Insurance brokerage companies, governments, andinsurance supervision authorities should make effort on as followed: First, set thecompetition system for the industry; Second, establish the system for insurancecompanies to collect capitals and the companies should regulate their operation toachieve the critical for applying for the listed company as early as possible; Third,regulate the operation; Fourth, enhance to create new technology and products and traintalents to improve the specialization level and transfer the development system of theindustry; Fifth, the differentia of policies should be enhanced too. Different policiesshould be set for different regions and different changing trends.