Research On Marketing Strategy Of Personal-Income-Tax-Deferable Pension Business For Life Insurance Company A

Along with growth of China economy and the awareness of importance of insurance coverage, people’s demand on quality and dignity of life at senior stage shows an obviously increasing trend. In the future, commercial pension business will play a very important role in China pension market. Its potentiality should never be underestimated. The project on setup of Personal-Income-Tax-Deferrable Pension (PITDP in short) was raised and started by Shanghai municipal government in2007. Lots of research on its importance, necessity, operation system design, product design and regulation rules etc. has been discussed since then. But, topics about marketing strategy of PITDP are seldom touched. PITDP has some unique features:It includes some non-commercial policy purpose. Product design is highly regulated and becomes almost the same for all the players. The processing procedure is something like "personal insurance with group insurance processing". So it’s a big issue for the whole life insurance industry to do some research on marketing strategies in all aspects such as pricing, better utilization of distribution channel, more efficient customer acquisition and product advertising, sales process emphasizing both institutional and personal customers, reasonable match between this sales process and business promotion model. This is what we mainly discus here in this paper.Life Insurance Company A was established in2011, mainly owned by a local bank called AA Bank in China. Before it is controlled by AA Bank, A is a regional, small-sized life insurance joint-venture. Now A is in a transition to a nation-wide, middle to large-sized, state-owned enterprise. This paper uses Life Insurance Company A as a sample, starts from analysis on macro environment of ageing process of population and current retirement system in China, gives suggestions on proper target market and marketing position according to Company A’s reality and business vision together with leveraging on strong resource from its main shareholder-AA Bank. We expect those marketing strategies including product, pricing, distribution and promotion strategies can be applied to sales practices in Life Company A regarding on PITDP business, and make it be the top among the market competitors in this field.