| Insurance has become the most promising and quick developing industry among national economy since people's gradually increasing awareness and requirements on risks defense, which grows together with fast development of national economy and people's income level. Reinsurance, as contributor and safety valve of insurance companies, has performed its un-substitutable functions as both insurance companies' risks distributor and insurance markets' instructor. Synchronously, the quick and stable development of national economy creates more evolution space for reinsurance.China Reinsurance (Group) Co., Ltd. (hereinafter called "the Company") is an exclusive nation funded reinsurance company which has executed governmental reinsurance functions for many years. The Company has obtained monopoly positions before and during the first five years of China's accession to the WTO due to the provisions of Insurance Law of P. R. China (hereinafter called "Insurance Law"), which stipulated that all insurance companies should arrange certain proportion of all their businesses to the Company for statutory reinsurance.The proportion of statutory reinsurance is 20% before China's accession to the WTO in 2002, after that, the government promised to reduce the proportion at a percentage of 5% each year. It was not until 2006 that statutory reinsurance was completely cancelled. Furthermore, On February 28th, 2009, upon the 7th meeting of the Standing Committee of the 11th National People's Congress, the new revised Insurance Law was adopted and Domestic Reinsurance Priority was abandoned accordingly.How the Company will undergo great challenges and seize this historical opportunity to strengthen its external competitiveness, and navigate the well process of China's reinsurance and insurance markets, which have extraordinary meanings for the healthy development of the whole nation's economy under such a political environment.This essay, based on documents and statistics of worldwide insurance industry, uses fundamental methodology and approaches of strategic research and management, introduces industry modularization theory and narrates the concrete tactics on how the Company should utilize its inherent advantages and avoid its disadvantages, seize actual opportunities, overcome external and internal threats, makes out its development strategy of reinsurance businesses, persists in increasing its competitiveness and profitability, assumes the Company's responsibility as the main contributor of risk distribution and indemnification, and consequently become the safeguard for stable development of the whole nation's economy and society.This essay constitutes of six sections:Section I : Preface, which introduces the significance of topic selection, logical frame and methodology along with the new opinions and deficiency of this essay;Section II: Summary of the author's proposals on the Company's management strategies.Section III: Analyze macro economic environment which the Company is facing based on PEST Model and Michael Porter's Five Forces Model;Section IV: Analyze and expose the advantages and disadvantages, opportunities and threats which the Company is confronting based on SWOT Model;Section V: Introduces the implementation of Industry modularization theory;Section VI: Presents strategy scheme and execution of the Company's business development on the basis of industry modularization theory;Section VII: Proposals on government policies upon insurance industry of China and the author's further research orientation.The new ideas of this essay lies in its practical research and analysis on challenges and opportunities which the Company facing in this new macro economic environment, indicates series of measures how the Company should take to explore more reinsurance business and increase its international competitiveness. Meanwhile, it's the first time that the author applies modularization pattern on insurance industry, especially on the integrated utilization of industry modularization theory on the Company's business development strategy. All these proposals and indications will help to strengthen the Company's core-competitiveness and have positive effects on its business development.The author consider that the improvement of the Company's core-competitiveness is equal to that of China's reinsurance industry, that is, the international status of China's reinsurance industry is improved, which has great significance on healthy and stable development of China's national insurance industry. The insufficience of this essay is that the author can not obtain open and true statistics and conclude accurate quantificational analysis due to the slow development of China's reinsurance industry, distempered information system as well as systematic problems, therefore, all these will affect the author to advance more scientific and valuable management tactics. |
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