Adjustment Of The Insurance Company Property And Casualty Insurance Business Structure And Development

There were 27 companies of property insurance in China from 1980 when China began to recover domestic business of property insurance. By the end of 2004, among them, there were 14 Chinese-invested insurance companies, foreign-invested companies and joint ventures, so multiple-body market structure formed basically. Since 1990's, with the continuously rapid and stable development of national economy and gradual form of social security system, the internal demand of whole society to insurance extends increasingly, and the insurance industry presents the power head of a high-speed development, which results in the total scale of the insurance market keeping on the growth; But while the insurance industry develops rapidly, various structural antinomies present out gradually, which have close relationship with huge development potential, vigorous degree of the market competition of Chinese insurance market and the immaturity of the insurance management corpus. The foundation of the analysis of this paper is the frame of SCP of the industry economics, namely analytical frame of the Structure - the Conduct - the Performance. The industry organization theories think that the market environment decides market structure, the market structure decides market behavior, and the market behavior decides market results. In the short term, the relationship among market structure, the market behavior and the market results are that the market structure radically constrains the market behavior, the market behavior come to a decision directly on the market results as well. From the long-term investigation, the market structure also changes variously, and this kind of variety is the result of the long-term effort of enterprise's market behavior, sometimes the variety of the market results will also cause the market structure changeable directly. Based on the SCP analytical frame and Porter's competition theories, according to the analysis on various management index sign and market competitive behaviors of the last few years in China's property insurance market, I conclude that the reason of causing the unreasonable business structure of each the insurance company is because the market structure causes the market competition behavior excessively concentrating in the mobile car insurance business, but this kind of market behavior results in the whole business loss in the mobile car insurance business, and lower the profits in insurance business. This kind of market result turns over to force insurance companies to carry on the adjustment on business structure themselves, and the purpose is to optimize business structure by themselves, in order to raise the company's profits of guarantee, lower the management risk, strengthen the business enterprise competition ability, consolidate the market position, and solidify foundation, in order to lay the foundation for the insurance market internationalization and carry out the business enterprise target of the farsighted development. In succession, according to statistical data property insurance market in Sichuan, combining the related theories such as the SCP analysis the frame, I conclude the reasonable business structure of property insurance company. At the same time, with the failure of certain property insurance in Sichuan as the illustration, I analyze the condition of the company's business structure, and have the conclusion of the unreason of the company's business structure from the high ratio of the company mobile car insurance business. But the company's weak fundamental management, the backward construction of company's culture falling behind, and disadvantageous market competition structure and the particularity of the insurance market, etc, is the basic reason to produce the unreasonable structure, and carried on to elaborate to the seriousresult that the business structure may bring. Based on the analyzed result above, according to actual circumstances, such as market demand and the competition strength etc, and aiming at the subject of the subsidiary of certain cor...