Research On The Insurance Agents Incentive Mechanism Of CL Corporation In Chengdu Branch

In1992the personal insurance agent system was introduced to insurance industry in China, and stimulated the insurance market. In2011, the national insurance premium reached1.4trillion, an increase by10.4%compared to2010. The personal life insurance agent system made a great contribution to the development of China’s insurance industry, especially the life insurance industry.However, with the constant development of the society, a notable gap emerges between the development trends of the insurance industry which depending on the insurance agents and the demands of the development of national economy as well as the expectation of the public on the insurance. The malpractice of the system that appears apparently and gradually, especially the deep-rooted problems during the development of insurance industry must attract sufficient attention.On the one hand, the insurance market is facing more and more chaotic situation. The individual insurance agents begin to carry the vicious competition, defaming each other or even deceiving or misleading the consumers. Meanwhile, the insurance companies also attempt to attract the agents from each other, which directly lead to the too frequent job-hopping of the agents, too high loss rate of the insurance company and too low trust in agents of the public.On the other hand, as the bond of insurance companies and clients, the insurance agents represent the insurance companies only with a kind of principal-agent relationship. Thus the insurance company has little right to control the agents, while the clients also lack the ability to supervise the agents.Once the insurance agents choose to defraud the company or the clients, it could significantly bring negative influence to both the companies and the clients. These conditions mentioned above can make both the insurance agents and insurance companies trapped in low-quality circumstances, which may encumber the development of the insurance market. Therefore, in-depth studying the problems of the incentive mechanism of insurance agents, analyzing the incentives and finding out the countermeasures can bring lots of benefits, such as improving the circumstances of the insurance market, bettering the management of insurance companies, strengthening the trust in agents and promoting insurance industry to develop continually, healthily and steadily.Based on the overall research on the incentive mechanism of Chengdu Branch of CL Corporation, this essay firstly recognizes the present inventive mechanism and analyzes the problems of it. It then goes on to discuss how to regulate the behaviors of the agents, widen the sales channels of the agents and maintain the benefits of the clients through the market-oriented researches on the incentive mechanism of insurance agent.Combing the incentive mechanism theory with practice, this essay carries out several suggestions on re-construction of incentive system of Chengdu Branch of CL Corporation, which mainly includes setting up multilevel salary incentive to meet the needs of the insurance agents at different levels, introducing the insurance agent quality assessment mechanism to supervise insurance agents effectively, setting up the honor system within the enterprise culture as the center to strengthen the insurance agent’s sense of honor, establishing of occupation career planning with sustainable development as the core to enhance the sense of achievement of insurance agents. What’s more, the essay suggests introducing the insurance agent credit evaluation system based on the analysis of the traditional insurance incentive mechanism. In this way it will add an extra relative performance evaluation indicator to the traditional absolute performance evaluation indicator. Besides keeping the traditional quantitative and qualitative evaluation indicators to analyze and evaluate, introducing the performance evaluation indicator from the third party, which is made up with18indicators in aspects of individual basic aptitude indicator, behavioral norms indicator and honor indicator, can help significantly to establish a comprehensive insurance agent credit evaluation incentive system.In conclusion, after improving and consummating the incentive mechanism as above, effective management on insurance agents could be carried, the healthy sales ideas and stable career consciousness of agents could be cultivated, the benefits of the clients could be protected and the positive image of the insurance company could be established, which will finally promote prosperity of the insurance industry.