Research On Development Strategy Of HB Insurance Agency

Since1998, China’s insurance agency industry has developed quickly to a new stage, where the number of agency has been swarming, business scale has been expanding, its prominent contribution to the industry has making it higher in the industry, a main force of insurance agency market. Along with the social economy development and the continuous improvement of the public risk awareness, insurance demand has increased, which is bound to make the role of insurance professional agency higher, and which requires the reform of the insurance agency system. Meanwhile, because it started late and has a weak foundation, the development of China’s insurance agency industry is not in accordance with the standard of the socio-economic development and the requirement of its own system reform.HB Insurance Agency Company was founded in2001. It is one of the earliest insurance agencies of Mainland China, and has been exploring and developing with a steady step, gradually expanding the scale and setting up many branches in Jiangsu Province. It has been enlisted in the top ten of professional insurance agencies with highest business income in2004. And in November of2007, China Insurance Regulatory Commission has unveiled the policy "Several opinions about the development of insurance intermediary market", by which it is to encourage professional insurance agencies’development to a greater level with a more flexible mechanism. In2009, it has authorized the requisition of national agencies. In this context, the HB Insurance Agency Company should be highly aware of how to seize this historical opportunity, implement the breakthrough, which is the most important strategic problem the company is facing.This paper is on the basis of practicability principals, discuss the business of insurance agent and the insurance business product characteristics, aiming to present theoretical guidance and realistic opinions with some typical case studies and documentary research, for the healthy development of HB Insurance Agency company and other agencies which are facing similar conditions. And after thorough description of the theoretical research of the strategic management, the research/writer use the method of PEST to analyze the external environment changes’ influence on HB Insurance Agency company from the political, economic, socio-cultural and technological perspective, so as to present a clear picture of the opportunities and risks the company is facing. Through the establishment of SWOT model within the company, the enterprise’s advantages and disadvantages as well as the opportunities and risks it is facing, a comprehensive summary and analysis is made, which leads to a conclusion that HB Insurance Agency Company should implement the growth-oriented strategy, combined with the practice of the three-step strategic idea of upgrading-merging--expanding.