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Six Trillion Deposit Unfolding Boundless Commercial Opportunities
The latest statistical data of People's Bank of China shows that at the beginning of this year, the saving deposits of Chinese residents has already exceeded six trillion, reaching 6.0242 trillion yuan.
Although this six trillion deposit has to some extent limited the further expansion of consumption production, yet it contains huge potential for consumption and unlimited commercial opportunities. How to tap for these chances and turn potential into real consumption has drawn extensive attention from people of all walks of life. For insurance, only one percent of this latent consumption energy means a premium of 60 billion which can pull up the growth rate of premium to 45% as compared to last year!. Even if 0.5% means a growth rate of over 20%.
The key for insurance companies to turn the potential into reality is how to stimulate such latent demand into action, the following three points merit attention:
First, the improvement on service quality is the premise for expanding insurance consumption. The service quality is an important determinant for residents' insurance consumption and the fundamental standard for competitiveness of insurance companies. The long-established old conception of laying stress on business development and income while neglecting management and service have incurred Chinese insurance companies more and more insurance claim disputes, seriously affecting their creditworthiness, thus making insurance consumption contained. This situation needs a fundamental change as quick as possible. Insurance corporations should set up the brand-name image of service with credit, good quality, and high efficiency, and attract consumers by improving business management on all links before, during and after sales.
Secondly, improving coverage structure and developing coverage to keep pace with the needs of times is the key factor for consumption expansion. Premium derives from the sales of insurance coverage. While there exist over ten thousand coverage in the world, yet that seen in the Chinese insurance market are not up to five hundred, and many of them were developed during the restoration period of Chinese insurance industry in 1980s. With the improvement of people's living standard and deepening of insurance awareness as well as social and economic reforms, some of them have fallen short of the people's needs in present days. According to the statistic, 80% of the six trillion yuan of deposit come from 20% of the depositors. Developing coverage with high guarantee and multi-functions to meet the needs of this group of consumers will significantly expand insurance consumption.
Thirdly, adopting advanced marketing mode is significant to augmenting insurance consumption. The traditional marketing method in China, namely personal sales and promotion has deepened consumers' misunderstanding of insurance, and hindered the expansion of insurance consumption. However, in some countries with advanced insurance industry, some modern marketing tactics such as bank acting as a commission agent, network sales, broker sales and promotion have been widely used. This can help lower costs and facilitate standard management thus becoming the necessary trend for the development of insurance industry. In China, some insurance companies have owned the conditions for adopting such marketing styles, if they draw on the experience of the developed countries and venture to popularize it on a big scale, insurance consumption will undoubtedly be expanded.
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