The Study Of The Profit Pattern Of Dalian Motor Insurance

With the development of the vehicle market in the past 20 years, business scale expansion of motor insurance is rapid. In 2009, China vehicle production and sales both exceeded 13 million as the world's largest auto market, surpassing the U.S.. At the end of June 2009, the Chinese vehicle population has more than 170 million.From 1980 to 2008, the motor insurance proportion of property insurance accounted for 2% to 72.9%. Motor insurance are the main type of non-life insurance company, in a very important position. However, such a significant rapid growth industry is has been struggling with losses in recent years .According to Roland Berger's statistics, the average profit rate of motor insurance continuing keep on about -7% in recent years. In 2008, the whole industry of motor insurance underwritten the loss is up to 125 billion Yuan, the comprehensive cost rate up to 106.7%. In that situation, Dalian also could not escape the fate of loss. In 2008, comprehensive cost rate of motor insurance in Dalian is up to 109.7%. Homogeneous market and few of products coupled with the economic crisis make the insurance companies hardly obtain the profits by investing in the capital market. That directly affects the non-life insurance market.With the completion of Eleventh Five Year Plan, China will keep the rapid economic development in the next Five Year Plan. People's living standards continue to improve and ownership number of motor vehicles will keep growing. How to maneuver vehicle insurance business and adhere to the speed and efficiency? How to strengthen the capacity of management and reduce the ratio of loss and cost rates of motor insurance? How to keep the development of both rapid and good? Those are significant for the development of non-life insurance market. This paper starts from the profit pattern of motor insurance industry. Through the research and implementation of political research methods, analyze the existing business model of Dalian motor insurance market. From the core of auto insurance industry,profit growth,,profit target segmentation of profitability,profitability measures and brand barriers, those the five elements of profit pattern, analyze the situation and improved methods,。It is the arm for giving some reference to the healthy development of our motor vehicle insurance.This paper is divided into five parts:Part 1 is to introduce the purpose and significance of the topic. And also include the research methods and literature review.The second part of the paper focuses on the concepts and elements of profit model .It also give a brief overview of China's motor insurance.The third section describes the auto insurance market of Dalian, including the non-life insurance business market conditions and the auto insurance business status in Dalian. And from the strengths and weaknesses, analyze the opportunities and challenges of profit model of motor insurance in Dalian.Part 4 give the suggestions for improvement of auto insurance industry in the future. Adrian J.Slywotzky had proposed five elements in the profit mode .the five elements are the core profitability, earnings growth, segmentation of profitability objects, profitability measures and the brand barriers. From those five elements, the paper give recommendations for improvement of existing problems in motor insurance market, hoping to find the best way to auto insurance profits by consciously changing the profit mode of auto insurance industry.