Study of Evolution of Channel Strategy and Product Strategy On Performance in the Life Insurance Industry

• Main Authors: Su,Fang-Ying, 蘇方盈
• Other Authors: Lai,Hung-Chih
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/10983521854834208769

碩士 === 實踐大學 === 財務金融與保險研究所 === 100 === Life insurance industry before 2000 is mostly based on the traditional sales channels, or general insurance. However, in response to the internationalization and liberalization, traditional sales’ high turnover rate, cost threat, behalf of loyalty of customers, loosened restrictions, and mergers and acquisitions among financial institutions, the insurance companies have been struggling to develop the expansion of other favorable marketing channels to seek a more beneficial sales performance to increase the received profitability and revenue streams. In particular, in November 2001, through the implementation of the Financial Holding Company Act, integration of banking, insurance and securities merger provides consumers a comprehensive financial services as well as vigorous growth of bancassurance. According to the Life Insurance Association of the Republic of China, statistics show that in 2011 Bancassurance accounted for 59% of the life insurance market, 38% followed by the traditional sales channel, the general insurance on behalf of the channel. However, despite the diversity of marketing channels in the life insurance industry, the main business achievements are found mostly in the traditional sales and bancassurance. In addition, combination of insurance products will also affect the operation and development of life insurance companies. Since the product types of individual insurance are categorized into the traditional life insurance (annuity insurance), interest sensitive life insurance (annuity insurance), universal life insurance, investment-oriented life insurance (annuity insurance), accident insurance, health insurance, life insurance products have become more diverse. This causes the strategy of providing diversified portfolio to maintain the cost or selling a single product. Therefore, the purpose of this study is to analyze the dynamic development of the life insurance companies in marketing channels and product portfolio and to distinguish strategic groups from which the connection between the strategic groups and their performance can be examined. This study applies One-way ANOVA to measure the impact of the pathway and product portfolio strategy group on business performance. The study uses the data collected through 28 life insurance companies in Taiwan form 2007-2011. The research findings show: There is a significantly different performance of strategy groups, especially in the size of the company such as Return on Investment, Debt Asset Ratio, the First Year Premium Income, the market share of the First Year Premium Income market share, the market share of the Total Premium Income, non-claims litigation rate. However, the market share of the Total Premium Income takes a significant part in the dynamic development trajectory. This study contributes two innovations. First, although the strategic group research has been used in general, it is mostly distinguished based on Banking instead of life insurance companies. Therefore, the study combines insurance channels and analysis of business performance of insurance products and finds that the insurance marketing channels and fitness of insurance products all affect the operating performance of the life insurance company. Second, because of the international and the relevant changes to the Act in recent years, the life insurance industry has undergone dramatic changes; thus, all life insurance companies select the best strategy to improve their performance and to create the best benefit. Here, the study analyzes the changes of dynamic policy in the life insurance companies in the past five years and further reviews the performance results of all life insurance companies on the basis of their changes of strategy.