Research On The Development Strategy Of Small And Medium-sized Life Insurance Company

For life insurance industry in China, 2014 was an important milestone. The new publication of "Several opinions of the State Council on accelerating the development of modern insurance services" came up with the general objects for developing modern life insurance industry, the stimulation of tax extension policy to life insurance market,construction of “two generation system" and the formal implementation of “On strengthening and improving the supervision of insurance funds proportion notice” by CIRC. Generally speaking, these policies will provide new opportunities for life insurance industry in China since violent competition and serious polarization are popular in life insurance market. Due to earlier establishment and abundant fund, big companies such as China life-insurance company and Ping An life-insurance company occupy much of the market. That’s to say, other small and medium-sized companies are at a disadvantaged situation due to short establishment time and small market share. There is no denying that small and medium-sized life insurance companies can stimulate market, and accelerate the advancement and development of life insurance industry as well as market economy.Setting Sinatay life-insurance company as an example, the paper tries to make a study on the development strategies of small and medium-sized life insurance companies.Established in 2007, Sinatay life-insurance company has owned 18 sub-branches in China.In terms of establishing time and business scale, this company is typically a small and medium-sized life insurance company. A good political situation and economical trend,social needs for pension and medical insurance provide a best opportunity for its development. However, weak consciousnesses for insurance and serious marketing competition hinder its development in a certain time. By analyzing internal environment,we can find institutional development, new sales channel and products innovation are its advantages, while low popularity of this brand weak strength on channel development and serious homogenization of products as well lag of construction of enterprise culture and information construction also block its development. Problems such as lack of ability of solvency and authenticity of customer information lead it to the top of discussion. Whetherdealt with carefully with service developed at the same time becomes an urged problem Sinatay life-insurance company.Faced with opportunities and challenge at the same time, small and medium-sized life insurance companies such as Sinatay life-insurance company must make proper strategical choice according to self situation. If Sinatay life-insurance company wants to develop rapidly, it must grasp historical opportunities, take customer-orientated road, change management ides, and take innovation as guiding ideology. What’s more, it must be guided by market demand and take into account the development strategies to enhance soft power.