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Three Wins in Bank-Insurance Company Cooperation: Zhao Shigang
In the past eight months, different Chinese life insurance companies have signed letters of intent on cooperation with four big State-owned commercial banks and some famous city banks. The field of cooperation between the two sides was extended from the bank's agent selling of insurance policy to its collecting and paying insurance premium, conducting financing business and online capital settlement, thus forming a new pattern featuring business penetration of both sides, mutual complementarity and mutual benefit.
Relevant personages think that developing deep-seated cooperation between banking and insurance is in keeping with the development trend of the integration of international finance and has a far-reaching influence on the development and growth of China's finance, the improvement of the services of financial institutions and the raise of technical levels of services. It will result in the "three wins" of the banks, insurance companies and clients.
The competition between domestic and overseas financial markets is currently becoming fiercer. Providing the clients with diversified, all-directional and comprehensive financial services is becoming one of the important strategic objectives of the banks. The cooperation between banking and insurance businesses will enrich the contents of financial services and help the banks provide their clients with all-sided and comprehensive financial services which help the banks further improve their competitiveness. The bank can earn commission from insurance companies through developing insurance agency services. With the steady enlargement of the agent business, commission is likely to become an important source of the bank's profits and enables it to recover the network construction cost. Through cooperation with insurance companies, the banks will also be able to enlarge and stabilize their clients group, increase the clients' faithfulness, expand space and fields for competition and development, and support the development of core business. Cooperation in the fields such as consumption and credit will make insurance become an effective means for the banks to obviate some loan risks.
As regards China's current insurance situation, insurance companies, by using banking outlets as the selling channels for insurance products, can achieve the aim of fairly effectively cover the market and clients at relatively low sales and management costs. With the aid of the trust relationship formed between the bank and clients, the insurance company has effectively shortened the distance between the life insurance products and the clients. Meanwhile, it has deepened the development of the market by making use of the bank's brand and image advantages. Currently, China's banks possess huge amounts of information resources and high faithfulness of the clients. Through cooperation with the banks, insurance companies can successfully develop the bank's existing basic clients.
For the clients, the cooperation between the bank and the insurance company enables them to effect related insurance in the bank, so that the client, to some extent, can save money. At the same times, insurance conducted by the bank is cheap, and the product is simple and easy to understand and can provide more convenience for the clients.
Related personages indicated that the cooperation between China's bank and insurance is still in its primary stage. In particular, life insurance products suitable for sales in the bank are still lacking at the moment. Therefore, it is an urgent task at the moment to study and develop insurance products and have an in-depth study of the common benefit tendency of banking and insurance businesses.
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