Taiwan and Chinese Mainland have good political relations in recent years, so that the financial aspects of the interaction is more closely. In the insurance industry, since Chinese Mainland joined into WTO, Taiwan’s life insurance industry optimistic about that China has a vast territory and population. Therefore Taiwan’s life insurance industry pay attention to the development potential of the Chinese Mainland’s insurance market. Some Taiwan’s life insurance companies invest in China. Currently Cathay life insurance, Shin Kong Life Insurance, Taiwan life insurance are both set up joint ventures in China, namely, Cathay Life Insurance Company Limited, Shin Kong & HNA Life Insurance Company Limited, King Dragon Life Insurance Company Limited. China Life Insurance is based on the equity operated CCB Life Insurance Company Limited.
The study found that (1) because the various entry modes have advantages and disadvantages, Taiwan-funded life insurance companies must develop goals and carefully choose the entry mode; (2) The subject of Chinese mainland insurance market steadily increased, the business structure gradually emphasis on the protection of insurance, and the service of insurance deepen around every region. The insurance market gradually improve and stable development; (3) Compared to China-owned
insurance companies, Taiwan-funded life insurance companies are established among the short-time, there are more operating costs and expenses, and assets-owned is less than China-owned insurance companies, and there are limitations in the entry conditions, methods of establishment, types of business marketing, scopes of services, therefore, in the fierce competition market, Taiwan-funded life insurance companies have operating problems.(4) In particular, the trend of internationalization is a rough period for Taiwan-funded life insurance companies that are demanding high stability, because countries have reached a consensus to consistent with each country’s insurance accounting, insurance law and solvency system. Taiwan-funded life insurance companies need to inject more capital, but there are different operating ideas between partners of the joint venture. If partners of the joint venture not reach consensus to inject capital that leads to the possibility of insufficient liquidity, and the worst case is that end up the joint venture relationship, finally the Taiwan-funded life insurance company have to find the other joint venture partner. (5) Holding the opportunity of Negotiation between Taiwan and Chinese Mainland, fighting for benefits through the supervisory authorities, helping Taiwan-funded life insurance companies solve operating difficulties, and then go international to expand branches.