By Tian Hui, Research Team of “The Future Development of China’s Life Insurance”, Research Institute of Finance, DRC

Research Report No.134, 2016 (Total 5017) 2016-9-28

Abstract: Since the turn of the new century, the growth of American life insurance has slowed down due to a series of macro backgrounds, such as the impact of the two financial crises. However, more evidence shows that under the changes of the external environment, the American life insurance is entering a new round of transformation and adjustment. The current American life insurance is facing three major challenges. The first one is how to cope with the fierce competition arising from other departments in retirement financial markets including the competition between endowment insurance and banks and securities as well as the competition between long-term care insurance and government plans. The second one is how to comprehensively respond to the impact of the Internet and big data. The third one is how to respond to the adjustment of supervision system with higher costs and stronger uncertainty after the federal government gets involved in supervision system. China could draw relevant enlightenments from American practice. For instance, constant and persevering efforts should be made toward the transformation and upgrading of life insurance and an active and positive approach is required relating to innovation and reform. In addition, policy support and supervision adjustment are indispensable.

Key words: life insurance, transformation, challenge, the United States