On the other side of the kitchen, there were bursts of laughter like silver bells, which showed that Sun Jing and Sister Dan were chatting happily.

In the study, Wang Zimu added another cup of tea to Zhou Fangyuan.

"Chairman Chou, it is really an honor for us Huatai to be affirmed by you, believe me, Huatai will not let you down. ”

Ojiki raised his teacup like a wine glass.

Zhou Fangyuan nodded with a smile, and also raised his teacup, "I believe you, Wang Dong, otherwise I wouldn't agree to invest." However, although I can make investment decisions, to be honest, I still have some doubts, especially about the domestic insurance business. Because as far as I know, the domestic insurance business is not easy to do right now. ”

"It's not good to do. ”

Since it is necessary to cooperate in good faith, you can't hold the idea of pit the other party, say whatever you want, and then give the choice to the other party. Now that he has supplied and deceived others, he has turned his head around, and after people know the truth, what else will this friend do? So the best thing to do is to say one thing and give the final choice to the other party.

Nowadays, the development of domestic insurance is indeed not very good.

The first striking feature is that the market concentration is too high and the competition is still insufficient.

By the end of 2005, there were 93 insurance companies in China, including 6 insurance groups and holding companies, 35 property insurance companies, 42 life insurance companies, 5 reinsurance companies and 5 insurance asset management companies. The continuous increase of market entities is conducive to breaking monopoly and promoting market competition. However, judging from the current situation, the market concentration is still too high, and the situation in which a few large companies occupy the majority of the market share has not fundamentally changed, and the performance in the central and western regions is even more obvious. Taking the market share of Hui Province in the first half of 2005 as an example, in terms of property insurance, the market share of three companies was as high as 92.09%, of which 69.05% was an insurance, and in terms of life insurance, the market share of three companies was as high as 89.14%, of which 69.34% was an insurance, and the market concentration was significantly higher than the national average.

The high concentration of the market has brought many adverse effects to the long-term development of the market. First, the "Matthew effect" is prone to occur among the main subjects, that is, the competitiveness of companies in a dominant position is getting stronger and stronger, and the competitiveness of companies in a disadvantaged position is getting weaker and weaker, and the gap between the two is further widening. Second, the market competition is insufficient, which brings monopoly, the company lacks innovation power, the service level is difficult to improve, and the market demand is difficult to be effectively met. Third, the risk is too concentrated, and the adjustment of the operating policies of large companies directly has a huge impact on the market, and even causes market shocks. Fourth, new institutions entering the market are extremely squeezed and difficult to grow smoothly. Fifth, due to the large market share, large companies occupy a pivotal position in the market and have a greater direct impact on regulatory policies.

The second is the short-term nature of business practices, which affects sustainable development.

From the actual situation, at present, the development of some companies has a certain blindness, product development and promotion without long-term reasonable planning, such as "assault month, more than half of the time, more than half of the task" and other short-term behaviors. In the short term, such activities can be quickly scaled up and exceed the premium income task, but if similar activities are not carried out in the same period of the second year, the year-on-year decline will inevitably be significant, which will ultimately affect the sustainable development of the company. For example, if there is too much cash inflow in the current period, it means that there will be a large cash outflow at some point in the future, which will affect investment decisions, and at the same time, it will take a long time to absorb the cash flow problem, and the financial risk will also increase. In addition, the lack of coordination between the short-term and the long-term will inevitably increase the uncertainty of the long-term business strategy, change the expectations of shareholders and customers, increase social risks, and damage the company's image.

Third, there are misunderstandings in institutional adjustment, and the awareness of sound operation needs to be improved.

Judging from the operation of life insurance, the structural adjustment is mainly to reduce the single payment, the previous payment, the reduction of the bank generation, and the last insurance, while ignoring the structural adjustment of the types of insurance, regions, and other aspects, and as a result, there have been big ups and downs. In essence, single payment and regular payment are only a question of payment methods, and bank generation and individual insurance are only marketing methods, and changing payment methods and marketing methods are only a form of structural adjustment, but not the core content. For example, if the distribution of single payment business is reasonable over a long period of time, and the balance of "single in and out" is maintained, the cash flow can be balanced, and in a certain sense, single payment has become a regular payment. At the same time, the payment method and marketing method should fully consider the interests of customers, support customers to choose convenient methods, and respect the choice of the market. At present, some foreign-funded life insurance companies attach great importance to the business of banking and other aspects, and are also open to the single payment business, which is just the opposite of Chinese-funded companies.

From the perspective of property and casualty insurance operations, most of the structural adjustments have not achieved the expected results, and the balanced development of auto insurance and non-auto insurance has not been fully realized. The proportion of motor insurance is "getting higher and higher", and some companies have maintained the rapid development of motor insurance while the non-motor insurance business has not risen but fallen, and some companies have adopted a strong pressure on the motor insurance business, rather than promoting the rationalization of the business structure by developing the non-motor insurance business. This kind of development seems to have achieved a satisfactory business structure in the short term, but there are long-term hidden dangers, once there is a problem in the auto insurance market, the development and sales scale of other insurance types is small, the entire property insurance market will be shaken, and stable development will become empty talk.

Fourth, there is a lack of coherence in decision-making and an unstable workforce.

Taking a life insurance company as an example, since it is mainly a long-term insurance, the company's business decisions should also coincide with this, if there are major changes in structural adjustment every year, or even several major changes a year, it will not only cause confusion to the thinking of grassroots personnel, but also affect the long-term development of the company. Now some companies have very poor policy coherence, in the past few years, "emphasis on scale, light efficiency", now on the contrary, to assess the efficiency of the main, so that the scale has dropped sharply, personnel thinking confusion. Once there is a cash flow problem in the future, it may have to be scaled up again and re-assessed, which will inevitably lead to the interruption of business continuity. It can be seen that it is unscientific to only assess the efficiency without assessing the scale. In addition, the lack of coherence in decision-making also directly affects the stability of the team, especially the assessment and salary reform of some companies is too strong, the salary design is unreasonable, and the income gap is too large, which does not conform to the objective reality and seriously dampens the enthusiasm of grassroots personnel.

Finally, information asymmetry is more prominent, and the lack of integrity is widespread.

Information asymmetry is one of the important reasons for the lack of integrity. On the one hand, the current credit reporting system of the whole society has not been truly established, the legal system is not perfect, the insurance company has limited information on the insured, and cannot fundamentally control the moral hazard of the insured, and adverse selection, fraud and other phenomena occur from time to time. On the other hand, because the insured has less understanding of insurance knowledge, insurance contracts, insurance laws and regulations, etc., some insurance companies intentionally or unintentionally ignore the interests of customers, and a small number of people even induce and deceive customers. Information asymmetry can easily lead to "bad money driving out good money", that is, the quality of the company's customers declines, and companies with relatively standardized operation and management can compete with non-standard companies, or even withdraw from the local market.

These are objective problems, and they are not only the existence of one company, but also the problems of almost all companies and the entire insurance industry.

It's not that hard to solve.

To put it simply, it's a few points.

The first is the systematization of the insurance market; from the perspective of the market structure, the original insurance market is relatively large, and the reinsurance market is very small; the market is developing rapidly, the development of supervision and laws and regulations is relatively slow, the insurance intermediaries are chaotic, the illegal agents are serious, and the operation of power and official control have put the insurance entities in an unequal position in the market. Since the promulgation and implementation of the Insurance Law in 1995, especially since the establishment of the China Insurance Regulatory Commission in November 1998, the pace of building and improving China's insurance market system is accelerating, and a Chinese insurance market system with a complete system, complete categories and sound laws and regulations is being established.

The second is the specialization of the business. As far as the level of professional operation is concerned, especially compared with the international specialized insurance companies, the level of professional operation of insurance in China is still very low, and developed countries have special companies in the field of property insurance and life insurance, such as companies specializing in fire insurance, health insurance companies, motor vehicle insurance companies, agricultural insurance companies, and so on. With the deepening of the reform of China's insurance system, policy-based insurance businesses such as export credit insurance and agricultural insurance will be separated from commercial insurance companies, and the state will set up special policy-based insurance companies, and at the same time, in the next few years, franchised insurance companies will be established to specialize in business such as fire insurance or motor vehicle insurance.

Market competition is orderly. In recent years, China's insurance market is in a serious disorderly competition situation, the result of which not only harms the interests of insurers, but also harms the interests of consumers, and disrupts the order of the insurance market. After the establishment of the Insurance Regulatory Commission, it was further emphasized that it is necessary to gradually standardize the market order, increase the crackdown and punishment of illegal institutions and violations, and achieve remarkable results.

With the further deepening of China's economic reform, commercial insurance will be more deeply rooted in the hearts of the people, and the awareness of enterprises and residents to choose insurance is also increasing, and the demand for insurance is diversifying and specialized. They choose carefully based on their own interests and needs. In this gradually maturing market, products can only rely on brand + price + service to occupy the market, which is quality. As far as the quality of insurance products is concerned, it includes not only the function of interest protection or investment, savings or product combination, but also its price level and service level. The price of insurance products will also be market-oriented within the specified floating range. It is foreseeable that brand-name products + reasonable prices + special services will be the key to the competition in the future insurance market.

Innovation of the insurance system. Judging from the current situation, although China's insurance innovation has developed, it is still very backward, and actively carrying out insurance innovation is not only the trend of historical development, but also an important force to promote the reform and development of China's insurance industry. According to the specific situation of China, China's insurance innovation mainly includes product development, marketing methods, business management, organizational structure, electronic technology, service content, employment system, distribution system, incentive mechanism and other aspects of innovation. Through the innovation of the above-mentioned contents, we will promote the development of China's national insurance industry, so that domestic insurance companies will be invincible in the competition with foreign insurance companies.

Intensive operation and management. In the context of increasingly fierce market competition, domestic insurance companies have realized the disadvantages of only focusing on expanding scale and seizing the market, and have sought to take the road of efficiency, develop to connotative intensification, and pursue the maximization of economic benefits. On the one hand, intensive operation and management will be achieved by strengthening capital management, cost management, human resource management, operational risk management, and technological innovation; on the other hand, on the basis of the gradual improvement of the domestic capital market and the gradual relaxation of the policy on the use of insurance funds, the huge amount of funds formed by a large amount of reserves will be invested in real estate, stocks, and various bonds through direct or indirect channels, so as to achieve diversified investment and achieve the goal of improving economic efficiency. That is what Huatai is doing now, entering the Internet and allowing itself to get profitability from other directions.

In addition, the insurance industry must also seriously consider the internationalization of the development of the industry.

With China's accession to the WTO, while accelerating the pace of opening up the insurance market to the outside world and accepting capital investment from foreign-funded insurance companies, Chinese-funded insurance companies will also set up branches abroad, conduct business or buy shares of foreign insurance companies, and even acquire some foreign insurance companies. In terms of the development of insurance types, we will actively develop high-tech insurance types such as nuclear energy, satellite launches, and oil development, and in terms of business operations, we will strengthen technical cooperation and business cooperation with the international insurance market in the form of reinsurance ceding in and out or mutual agency between domestic and foreign companies, and actively carry out international insurance business.

There are other requirements, such as the specialization of practitioners, but that's for another time.

The development of the insurance industry is simple and simple, easy and easy, in the final analysis, it still depends on the people's insurance concept.

Nowadays, the insurance industry is not developing well, mainly because most of the people have not turned this corner in their hearts, and everyone has not completely come out of the public security model supported by the state, and there are a large number of people who are still waiting and watching. But as a reborn, Zhou Fangyuan knows a little bit about it, in the near future. It is about 10 years, and the total annual insurance fee in China can reach 1 trillion, and after a year or 5, the development will be faster, and the total annual fee will rise directly to about 3 trillion yuan.

In other words, the real reversal of the people's concept has to start from about 10 years, that is, there are still four or five years to go. It seems to be a long time, but it is just a matter of flicking a finger, so now it is a good choice for Yuanfang Group to invest in Huatai, with little risk and large returns. But...... In fact, if you think about it this way, other insurance companies seem to be a good choice.

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