Research On The Development Strategy Of Jiangsu Guoshou Group Insurance Business

With the bouncing down of China’s economic growth rate and the constantly depressed capital market, China’s insurance industry growth has been slowed down sharply. The underwriting business and investment income of major insurance companies are facing unprecedented challenges. With the sudden emergence of bank-affiliated insurance companies, financial products threat the bancassurance channel while the whole industry is confronted with surrender and maturity benefits pressure. When facing the fierce bancassurance channel market competition and increasingly saturated personal marketing, major insurance companies start to pay close attention to channel cultivation and transformation as well as taking the group insurance channel building and strengthening as the key strategic objectives.As one of China’s most developed in the field of economics and cultural, the government, society, enterprises and people of Jiangsu Province have strong awareness of security. It is also said on the18th Congress of China’s Communist Party that the improvement of people’s livelihood should be considered as a crucial issue as well as the social security system construction and perfection, which will definitely promote the group insurance business development into a new stage in Jiangsu Province. At the key moment, it’s urgent for Jiangsu Life to work out a scientific development strategy for its group insurance market. This thesis uses the knowledge of Business Management to analyze, select and execute the development of Jiangsu Life’s group insurance market, which gives the reference to its competitive strategy in the group insurance market.Firstly, it analyzes the macroeconomic environment of the company by using the PEST analysis method, such as the domestic and foreign ecomonic,, the population and the trend of the industry. It applies Porter’s Five Forces Model to analyze the microenvironment of the company, such as potential entrants, substitutes, negotiate with suppliers, the bargaining power of customers, and competition in the industry. According to their comparative strength and affection to the company, it identifies the strategies. Secondly,it analyzes the advantages and disadvantages of the company itself from the factors as enterprise market, the government co-marketing, business efficiency,structure and so on, comparing their comparative strength and affection to the company with Internal Factor Evaluation Matrix. It analyzes the major development opportunities and threat of the enterprise, comparing their comparative strength and affection to the company with External Factor Evaluation Matrix. Overall, it decides the strategy by SWOT analysis coming to the conclution that the rural market should take the difference strategy,It also suggests the measures that Jiangsu Life should take to implement the proposed strategy, such as Platform construction, team building, technology and services.