The Performance Evaluation Of Domestic Insurance Corporation

Since the 1970s, all the grand financial corporations (including insurance companies) in the world had being introduced strategy management. However, the domestic insurance companies have not established the strategy management idea and mechanism, which made the management of these companies lacking of protractedness, integrity, compatibility and validity. Facing the competition from the global insurance market, the domestic insurance companies should follow the international tendency, establish and implement the strategy management. The effective way of implement the strategy management is to establish EVA Balance Scorecard System.EVA Balance Scorecard System is the tool of performance evaluation, which aim at increasing the value of the corporation and consider all the related interest groups. EVA Balance Scorecard System has close connect with the process and result in the companies'creation of value, the establishment and implement of companies'strategies. In EVA Balance Scorecard System, EVA is the core, the final judgment. The Balance Scorecard is the frame, the tool to make it being balance.This paper is based on insurance, economics, accounting, and the management theories, combining research approach of comparative analysis and analyzing theory together synthetically. According to the domestic actual conditions, this paper develops the idea of implement EVA Balance Scorecard in our insurance companies. The thesis divides into three chapters; the concrete structure is as follows:Chapter1 definite the performance evaluation, introduce the performance evaluation methods at home and abroad. After that the thesis discusses the history and the current situation of the performance evaluation in our insurance companies. Then we get a conclusion that to establish a scientific performance evaluation system is necessary and urgent for our insurance companies.Chapter2 including 4 sections. section 1 introduce EVA theory ,the calculating method of EVA, the definition of accounting adjustment and capital cost .Section 2 introduce the Balance Scorecard theory system and the indicators of four aspects. Section 3 definite the EVA Balance Scorecard System based on the discussion among the section 1 and section 2. In section 4 we get a conclusion that the EVA Balance Scorecard System is necessary and applicative for our insurance companies.Chapter3 mainly discussed how to establish EVA Balance Scorecard System in our insurance companies. Firstly, introduce the general steps of establishing EVA Balance Scorecard System and the indicators of the system. Then, according to the character of our insurance companies ,the thesis discuss the calculating method of EVA in our insurance companies and 4 problems we should pay attention to when establishing EVA Balance Scorecard System.Innovation and deficiency of the thesis:Innovation:1,The selection of the thesis is new and practical. EVA Balance Scorecard System for the insurance companies is a new subject. So it has realistic significance .Then the subject must use insurance, economics, accounting, and the management theories, it is fully show the study of insurance accountancy is comprehensive.2,The thesis graft EVA onto Balance Scorecard to make full use of their advantages. Meanwhile, the strategy can drive the value creation attention of companies. EVA Balance Scorecard System can guide and appraise the establishment and implement of companies'strategy correctly.3,the thesis emphasis both the theory and the practice. The thesis emphasizes on using EVA Balance Scorecard System to solve the problems in performance evaluation system in our insurance companies. The thesis tries to give the respective indicators and give each of them detailed explanations.4,the thesis discuss the calculation of EVA in insurance companies, including the calculation of capital cost and the accounting adjustment.The deficiency of the thesis is that the depth and width of study is not enough.