The Competitive Advantages and Business Strategies of Bancassurance by Foreign Insurance Firms in Taiwan- A Case Study
|關鍵字:||銀行保險;外商壽險公司;競爭優勢;經營策略;Bancasurrance;Foreign Insurance firm;Competitive Advantage;Strategy|
Bancasurrance was developed in Taiwan since 2001. Late until June 2014, revenue from bancasurrance sales channel has achieved 277.8 billion NTD, which is over 50% of total insurance sales. It therefore reveals that the bancasurrance sales channel has become the major insurance market in Taiwan. How a foreign insurance firm can obtain its advantages in this market environment where local financial holding companies can easily utilize bank channels is the main research objective of this essay. Studies in the bancasurrance field were mostly based on the viewpoints of the banks, since banks controlled most essential resources, such as channels and clients, compared to the insurance firms. However, I chose a new perspective from the insurance firms, and observed a novel cooperation model from the case in my study that shows the practice used by foreign insurance company which hasn’t been sufficiently discussed before. I utilize Delphi method to obtain the expert’s opinions, and apply “Michael Porter’s competitive strategy”, and “Blue Ocean Strategy” as my analytical structure. The result shows that, in the bancasurrance field, foreign insurance firms enjoy two competitive advantages in “Overall cost leadership” and “Differentiation”, which further create “blue ocean field” and “value innovation”. Moreover, foreign insurance firms can develop the “partnership of the strategic alliance” with banks. Through “cross shareholdings” and “profits sharing” strategies, banks are willing to accept the “exclusive sale” agreement on certain products of the insurance firms, and provide the limited “tailor-made” contracts for their clients with the help of specially assigned “insurance specialists” located in all the bank branches. This strategy simultaneously levels up the resources and the qualities for the insurance companies. The exploration of the case company provides a good practice that a foreign insurance company can leverage under the competitive environment in Taiwan’s insurance market.