After reforming and opening up for 20 years, the life insurance industry has gradually become the next new financial industry in China with huge upside potential, but in general China’s life insurance industry is still in its infant stage of development.
China has become a member of the World Trade Organization and this poses new severe challenges. At present, China’s social security, pension and medical security system is under-developed, under this background, China market is in need of more innovative insurance product.
1. Life insurance industry is a debt management industry which strive to establish long-term investment model to utilize its funds and investment objective. The need to improve the level of investment profitability is the crux of this whole business. The solvency of the life insurance company is a comprehensive reflection of the overall business level of the company, which is caused by the whole operation process, from the product and sales to the incremental increase in the value of the insurance product which also involve the insurer, insured, operator, broker and China insurance policy. Many of the above factors causes the shortage of funds in the China’s life insurance industry.
2. There are many reasons for the lack of public awareness in life insurance, one is the short history of life insurance in China, the second is the impact of traditional culture and planned economy, the third is the development of China’s life insurance industry is still at its infant stage and people do not see the importance of buying insurance. Although there is a lot of progress compared to the previous years, but in general the people in China do not feel the need to buy insurance, which give rise to the challenges of the insurance companies.
Rise of the saviour:
SH Group with the help of many years in insurance brokers’ operations and international experience in financing, have embarked to analyse and find reliable and financially sound insurance companies. On the use of appropriate contracts to strengthen the risk management to ensure insurance company pay the insured. The company also introduce foreign insurance companies which will bring in new business ideas, marketing methods and advanced management methods. SH Group will bring a new revolution to the China’s insurance market.