An Evaluation of CRM Strategy at Ping An Life Insurance, China Dissertation

An Evaluation of CRM Strategy at knock An Life Insurance, mainland China - Dissertation ExamplePing An has been recognise and awarded for its customer relationship management approach but an evaluation of data suggests the adoption and implementation of CRM is not professionally and strategically adequate. Emphasis on salesmen appears to a hindrance to growth and accountability is lacking at Ping An. After evaluation of the available data, recommendations have been made on how CRM mint be in effect implemented at Ping An Life Insurance.China Insurance industryLife insurance business in China is huge and intensely competitive, accord to Binder, Bowers and Yung (2004) of The McKinsey Quarterly. China is now the worlds fastest growing major life insurance market. The drivers of growth in the sector include 40 share household savings rate, limited and deteriorating public-pension and health schemes that have heightened the demand for personal retirement savings and protection tools. Consumers sought investment options but the choice was limited. No attractive mutual funds offers are available and consumers cannot invest overseas. Bank yields are very low compared to typical savings policy. This helped to stimulate growth in the insurance sector in 1990 when foreign insurance companies were allowed to enter China either in joint venture with 5050 partnership or with a maximum of 25 percent ownership. However, within 15 years more than 90 percent of insurance sector is with three domestic insurers China Life Insurance, Ping An Insurance and China Pacific Life Insurance. The insurance industry is among the fastest growing industries in China and is the core business of the Ping An Group (Annual Report, 2012). However, the Chinese insurance business is in transition and hence has to adjust for sustainable and healthy growth (Market Review, 2012). This is critical since Chinas rescue is growing and personal wealth is expanding and hence sustainable growth becomes essential. Besides, competition is setting in as foreign insurers operational areas have expanded, which means they can operate in geographical regions they were earlier barred from. Besides, despite the three domestic insurers having large number of agents, the productivity on an average is less than one-fourth of Hong Kong agents. It has also been found by Binder, Bowers and Yung (2004) that these agents give misleading information and poor customer service. Such issues would allow the foreign insurers to increase their market share of the eater and mass-affluent segment. 1.2 Customer