BuildingProfessionalismTHENEXTSTEPFORLIFEINSURANCEINCHINATHEBOSTONCONSULTINGGROUPBCGASENIORMANAGEMENTPERSPECTIVEPREFACEBUILDINGPROFESSIONALISM:TheNextStepforLifeInsuranceinChinaPAGE6Withapopulationof1.3billionpeopleandasteadilydevelopingglobaleconomy,Chinahasthepotentialtobecomethelargestlifeinsurancemarketintheworld.Thispossibilityhasbeenclearlyrecognizedbothbylocalplayersandbypowerfulinternationalinsurers,manyofwhichhavesetupjointventureswithChineseinsurersoracquiredminorityequitystakes.Thepathtosuccesswillnotbeeasyforeitherdomesticorforeigninsurers.TheChinesegovernmenthasstrictcontrolsontheparticipationofforeignplayersandonthetypeofinvestmentsthatanyinsurerisabletomake.Chineseconsumers,longsubjectedtoagenerallypoorlevelofservicefrommanylocalinsurers,areincreasinglywary,demandingandselective.Theimprovementofthecustomerexperienceisshapingupasakeystrategicelementinthebattleformarketshare.Whilegovernmentregulationsarecurrentlyeasing,renderingtheChinesemarketmoreandmoreattractive,afargreaterdegreeofliberalizationmustevolvebeforeChinacanbegintocompareitselftothematurelifeinsurancemarketsofWesternEurope,theUnitedStates,andsomeotherpartsoftheworld.Fortunately,thegovernmentrecognizestheimportanceoftheindustry’sgrowthtoitsoverallprogramofeconomicdevelopment.Thisreport,theproductofanextensiveresearcheffortbyTheBostonConsultingGroupinvolvinginterviewswithmyriadlocalandmultinationalplayers,takesanin-depthlookatthelifeinsuranceindustryinChina.Itfocusesonthepatternsofitsevolutionandonthehurdlesthatbothdomesticandforeignplayerscurrentlyface.ParticularemphasisisplacedonthestepsthatChineselifeinsurersmusttakeinordertoenhancetheiroveralllevelofprofessionalism,andthus,theirabilitytocompete.Wetrustthepaperwillproveengagingandthoughtprovokingintheseextremelychallengingtimesfortheindustry.Wewelcomeyourcommentsandfeedback.SUMMARYOFKEYFINDINGSBUILDINGPROFESSIONALISM:TheNextStepforLifeInsuranceinChinaPAGE7Chineselifeinsurersmusttakedecisivestepstoimprovethewaytheyruntheirbusinessesift...
