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g risk. And the lack of professionals will also bring great risk to domestic insurance enterprises for their new product development. Additionally, the standardization of China’s insurance industry is even in badly needs of professional talents. Most domestic insurance companies follow the stereotyped methods in the planned economy period in their personnel management, human resources planning and reward management. Therefore their system of HRM becomes rigid with redundant employees and the egalitarian ideas still influence those domestic insurance companies. It not only does harm to increasing the human resources capital but also causes large number of high- qualified people’s to leave. Then domestic companies become the training centers for foreign companies because the present income and welfare for employees in domestic companies cannot compete with foreign companies, which have hundreds of years’ development and rich funds. 2.5 Domestic Companies Losing Traditional Advantages Besides the challenges mentioned about, domestic insurance companies are also losing their traditional advantages gradually. First, the development of domestic insurance industry depends on the government’s intervention to great extent. After entering WTO, the occupation of insurance business will turn to depend on the risk management of a company. In sharper and clearer competitions with lots of foreign companies, domestic companies have to make some changes in their management method. Second, some policies on the restriction to foreign companies will be canceled gradually. Then foreign companies will enjoy the same treatment as domestic ones. So the scale of the opening market in China for them will be broader. Third, because of the intervention of our government, some domestic companies and individuals have opposing attitudes to domestic insurers. Besides, for quite a long time, some ways of harming the insurers’ interests in the domestic competitions hurt the feelings of some customers on insurance consuming. Compared with foreign counterparts, domestic insurance companies are in inferior position on their credit. 2.6 The Remaining Advantages of Domestic Companies Although domestic insurers have to face such pressure brought by the opening of the market after entering WTO and the challenges seem to be formidable, there are still certain advantages for domestic insurance giants. First, “domestic insurance companies have possessed gigantic network organization and their business scale almost covers everywhere in China. Their salesmen go deep into the market and gain certain fame among their customers. PICC alone has more than 4,000 branches all over the country. For people in China have no strong sense of insurance consuming. To foreign companies, it takes quite long time and huge cost to set up such great network. Therefore, domestic companies can accelerate their management reform process, train more professionals and enhance their service quality so as to cultivate loyalty and trust of consumers and take initiative in the market.” [8] (P8-9) Second, “domestic insurance companies are very familiar with the consuming psychology and habits of domestic consumers. So they can use more proper methods to push the selling to gain the expected goals than foreign companies can do. Foreign companies have to get familiar with the market first, try their best to localize their business and blend harmoniously into domestic insurance market. It will be a ve