Research On Product Innovation Problems Of Life Insurance Market

Recovered from1982， China’s life insurance industry is facing a morefavorable policy environment，and the insurance consciousness of the whole society isfurther enhanced. The development of the life insurance industry obtains a strategicopportunity. However，accumulated problems of the industry are constantly emergingand the product problem is a very outstanding one. In general, products arehomogeneous seriously，the product structure is not reasonable，the innovation andcompetitiveness are insufficient， product supply and market demandare decoupled etc…This situation leads to that the products not only unable to meetmarket demand of life insurance products，but also not conducive to the growth ofChina’s life insurance industry in open economy condition and the fierce competition.In order to solve above product innovation problems，this paper analyzesthe history of Chinese and foreign life insurance product innovation and dividesthe development into different stages by using the methods of summary. Consideringthe present situation of life insurance products，we will come up with ideas of newproduct and service to attract more insured participating in life insurance plan. Theexperiences of product innovation activities in foreign insurance industry which we canuse are: focusing on life insurance product innovation theory research，closely followingthe market trends and be considerate of customers etc.Only when the income is greater than the cost，does the innovation work. We usethe cost-income analysis method to set up the product innovation cost-income model，toevaluate the efficiency and economy of life insurance product innovation. The modelmainly includes the cost and income accounting method. Hope that our country lifeinsurance companies could strengthen the cost and income accounting and achievemaximum profits.Combined with the previous statement，this paper puts forward the general ideaof China’s life insurance market product innovation mechanism， including targetorientation，path selection and the internal and external environment improvement. Firstof all, we should be clear of China’s life insurance industry product innovation goals: to design differentiated products that follow the rules of market development and meet thediverse needs of the market. Next，this paper puts forward the specific measures ofthe product innovation， including: first， to establish the cooperative organizationstructure which the product development department as the center and with thecombination of inside and outside. Second, improve life insurance product designprocess. Third，pay attention to the role of service channel strategy in promoting lifeinsurance product innovation. Fourth, promote the market sensitivity of lifeinsurance enterprises. Fifth， establish a perfect information technology systemof product development. In addition, the life insurance product innovation is inevitablyaffected by the internal and external environment. The external environment mainlyrefers to the legal，regulatory and other macro environment and industry environment,which is difficult to control or change and need to pay more attention by stateand government. The internal environment is controlled and adjusted by life insurancecompanies and it includes inputting more human and money resources,strengthening culture of innovation and strengthening the construction of corporatesocial responsibility.In a word, the ultimate purpose of this paper is to provide thoughts of productinnovation to life insurance companies and make the innovative life insurance productsbring new business growth to life insurance companies.