A Study On China's State-owned Insurance Company Reform

To set a modern enterprise system is the direction to reform state-owned enterprises. State-owned enterprises should accelerate the establishment of modern enterprise system, change the running mechanism, and make the enterprises evolve positively. To reach this goal, State-owned firms have to be legal entities and market participators who purse economic profits and value increment of firm assets. They also have to be producers and operators who respond quickly to market signs and regulation policies. In addition, they have to be active market competitors and risk undertakers. With the help of modern enterprise system, state-owned firms can not only establish and improve the system of enterprise leadership and organization management to adapt to the new requirements of socialization of production and meet the needs of market economy, but also form an operation mechanism that promote the productivity and economic interests. Besides, state-owned firms should reinforce their management group and enhance their management level.Our state-owned insurance companies were born at the days of planned economy. Until now, the insurance market is still in a state of half planned-half market. All insurance companies are strongly planned with no survival risk. They undertake low risk and make high profit with the protection of state policy. Many managers disregard "profit maximization"—the ultimate object of business, but pay more attention on political interests than on economic ones. They are unwilling to modify their management pattern, attach much importance to experimental management but think little of scientific administration. Undoubtedly, this kind of insurance companies will face huge difficulties in a completely competitive market while china enters the WTO. Therefore, it's very necessary to reform our management pattern. The state-owned insurance companies should realize their problems and deficiencies, speed up the transition from experimental management to scientific administration, move quickly from the planned economy to the market economy, get rid of too much of political intervention, run in the frame of market economy, pay attention toqualified human resources, profits, and management. Only in this way, our insurance industry can develop healthily and stand an indefectible position in the competition with foreign insurance companies.Based on the research achievements related to enterprise reform, the essay, applying theoretical and practical management methods, discusses the problems on reform of state-owned enterprises after they join the WTO with the aim of continual development. The essay introduces the current situation of state-owned insurance companies, points out the existing problems of these firms, and then analyzes the management surroundings after WTO. Finally, the assay discusses the problems on how to build modern insurance enterprise management system using contemporary management theories.