Overall Budget Management. Owned Life Insurance Companies

With the durative and stable development of national economy, theChinese life insurance industry has developed at a full speed in recentyears. But the management environment has been greatly changed sinceDecember 11, 2004. In the past, Chinese life insurance companiesobtained the extremely precious development space because of the limitof admittance. But after that, the trend of competition from globalinsurance companies has been formed. Chinese life insurance companieswill really face the competition from the foreign life insurance companieswho have hundreds of years' management experience. And the mostserious threat is the lag of managerial skill. So the extensive managementmode has been out of time and must promote managerial skill of Chineselife insurance companies as soon as possible. As a way of controlling most of the key problems in one system, thecomprehensive budgeting management is an edge tool for companies'strategic management and internal controlling. It has been widely used inwest life insurance companies. Although some Chinese life insurancecompanies have began to use it, a lot of problems were exposed becauseof their shot management history and deficient understanding. So thecomprehensive budgeting management in Chinese life insurancecompanies didn't achieve the anticipative purpose. This dissertation isjust written about how to effectively use comprehensive budgetingmanagement in Chinese life insurance companies. There are four chapters in this dissertation: In Chapter One, this dissertation theoretically analyzes thecomprehensive budgeting management. Firstly, it discusses thedifferences and relations of budget, forecast and plan. This dissertationdiscusses about enterprise budgets in instead of government budgetsbecause of their great differences. Secondly, the dissertation definescomprehensive budget and analyzes the comprehensive budgetingmanagement from three angles of strategic management, cost of exchangeand agency problem. Thirdly, it brings forward that the control circle ofcomprehensive budgeting management should consist of budgetcompiling, execution, difference analyzing and assessing. So Chapter Oneis the foundation of the full dissertation. In Chapter Two, the dissertation introduces the practice ofcomprehensive budgeting management in Chinese life insurancecompanies. This chapter is divided into three parts. The first partexpatiates on the background and significance of using comprehensivebudgeting management in Chinese life insurance companies. It willshorten the gap of managerial level between Chinese insurancecompanies and foreign insurance companies. The second part discussessome instances of comprehensive budgeting management in Chinese lifeinsurance companies. At last, some problems are discovered in theinstances such as the deficient understanding of comprehensive budgetingmanagement, the limitation in budget controlling system, unreasonableperformance assessing and so on. In Chapter Three, on the basis of realizing the extant problems, thedissertation brings forward the overall frame of effectively usingcomprehensive budgeting management in Chinese life insurancecompanies. Firstly, it clarifies the characters of life insurance andcomprehensive budgeting management in life insurance companies.Secondly, it discusses four modes of using comprehensive budgetingmanagement. But there is no specific limit to use any modes in practice.Thirdly, the dissertation discusses the organization structure ofcomprehensive budgeting management in Chinese life insurancecompanies. It consists of managerial organizations and executiveorganizations. The managerial organizations consist of the committee ofcomprehensive budgeting management and assistant managerialorganizations. The executive organization consists of responsibilitycenters. At last, the dissertation discusses the flow of comprehensivebudgeting management in Chinese life insurance companies and thecontents to be compiled in budget sheets. In Chapter Four, the dissertation discusses how to control thecomprehensive budg...