A Study On Comprehensive Budget Management System Of Life Insurance Company

From resuming operating in 1980, life insurance industry in China has kept itsrapid development for about 25 years. However, with China entering into WTO, it isnot only an opportunity but also a challenge for Chinese life insurance companies tocompete in the domestic and international markets, because our life insuranceIndustry still has some institutional questions and many disadvantages in competitionability. Comprehensive budget management is one of the central content of modernmanagement methods, which is vital to a company's success. Comprehensive budgetmanagement is in favor of decreasing the operating risks and transaction costs, and infavor of improving the efficiency of recourse allocation and the correctness ofdecisions.Based on some first-hand materials about life insurance company's budgeting,using both normative and empirical research methods, this paper studies the procedureand methods of comprehensive budget management fitting to Chinese life insuranceindustry. Firstly, we demonstrate the background, research method, and the structureof the paper. Secondly, the paper introduces the principle of comprehensive budgetmanagement, including the characters, the role, and the circulation of comprehensivebudget management. Thirdly, in order to correctly introduce comprehensive budgetmanagement system into life insurance industry, it is important to know the feather ofits operating. So the paper discuses some operating and supervision unique charactersof life insurance Industry, including its particularity of operating target, products andcapital structure, its sensitivity to external environment, high system risks, and rigidsupervision, etc. Fourthly, aiming at the characters discussed above, we emphasize thecentral procedure of comprehensive budget management system in detail, includinghow to set the target system of budget, how to construct the organization, and how tocontrol the budget process, etc. Fifthly, we give a demo of comprehensive budgetmanagement system based on a case study. Sixthly and finally, the paper emphasizessome questions that should be especially concerned.