What is the impact of China s accession to the WTO on China s life insurance industry 15

1. WTO: China's life insurance is facing severe challenges.

According to the final document of the General Agreement on Services**, once China joins the WTO, it will undertake the necessary obligations in four areas: "market access", "national treatment", "most-favored-nation treatment" and "transparency". That is to say, as in the past, the restrictions and measures on foreign-funded insurance entering the Chinese market will be abolished or gradually relaxed, and China's life insurance will face a real test of competition in the international market. This test will generally put the following pressure on China's life insurance industry:

Clause. First, the main body of competition in the life insurance market, which is dominated by foreign capital, has increased dramatically, and the market share of the national life insurance industry will be diluted.

Clause. Second, the abundant capital and multi-channel operation experience of foreign-funded insurance will pose a huge threat to the national life insurance industry.

Clause. Third, the advanced product design and good after-sales service of foreign-funded insurance companies will form a strong competitive pressure on Chinese-funded life insurance companies.

Clause. Fourth, the advanced mechanism and preferential treatment of foreign-funded insurance companies will cause a large loss of talents in Chinese-funded life insurance companies.

Clause. Fifth, the advanced computer technology and advanced information processing system of foreign-funded insurance companies will form a competitive gap with the relatively backward production tools of Chinese-funded life insurance companies.

2. WTO: China's life insurance is also facing huge business opportunities.

Any challenge also brings opportunities, and after China's accession to the WTO, the business opportunities faced by the national life insurance industry are also huge.

First, the Chinese nation is the smartest nation, and it is best at learning from others' strengths, making up for its own shortcomings, and catching up with the world trend.

Second, Chinese-funded life insurance companies have taken the lead and initially gained a firm foothold on Chinese soil, forming a network and forming a scale, which is difficult for foreign-funded insurance companies to shake.

Third, the Chinese-funded life insurance industry will maintain a clear short-term advantage over foreign insurance in terms of cost, and the goal of striving for a long-term cost advantage can also be achieved by effectively using insurance funds and expanding investment channels.

Fourth, China's life insurance industry has a deep local cultural foundation and an extensive network of social relationships, which is the most difficult and valuable resource for foreign insurance companies to obtain.

3. In the face of WT0, the national life insurance industry should take measures.

First, it is necessary to formulate new restrictions on foreign-funded insurance companies, and at the same time support qualified Chinese-funded life insurance companies to set up new institutions and expand their scale to cope with competition.

Second, open up financing channels for raising capital to cope with capital competition.

Third, the channels for the use of insurance funds should be relaxed to cope with investment competition.

Fourth, we should earnestly grasp the pre-sales and after-sales services and comprehensive financial services for customers to cope with customer competition.

Fifth, we should actively develop guarantee-type and investment-oriented products to cope with product competition.

Sixth, it is necessary to speed up the realization of computer networking in order to cope with technological competition.

Seventh, promote the shareholding system and implement cross-shareholding to cope with institutional competition.

Eighth, strengthen and improve the construction of corporate culture to cope with cultural competition.

I think it should have more or less impact, there are many life insurance companies abroad, and the retirement salary is high, the system is relatively perfect, and China is relatively short and imperfect, and the retirement salary is not very high, so China's life insurance should actively carry out reforms to adapt to the competition!!