On The Application Of Financial Management In The Insurance Business Marketing

Since 1979 the insurance industry has recovered, there has been a great development of insurance industry in China. Market main body grows up, the functions as analysis insurance, finance as well as service of insurance are gradually strengthened up. The types of insurance, insurance revenue are in a rapid growth with the nation's insurance consciousness waken up and comprehensive strength of insurance enterprises advancing gradually. While it is not harmonious under prosperity, one of them is market behavior of insurance enterprise, which there are still many problems in marketing manner. Insurance marketing is still under the guide of consumption behavior, for quite a few enterprises use simple strategy of price competition, motivate insurance agents with high procedure fee and commission, and achievement assessment depends mainly on total insurance premium, which is a result of decrease in insurance profit, challenges the future development of national insurance with hidden trouble and gives threat to its liquidate capability and financial stability. There are four chapters except preface. The first chapter defines basic theories as marketing and insurance marketing. Chapter two gives analysis to contradiction and fusion of financial management and insurance marketing under the major premise of targeting at enterprise value maximization. Chapter three is essential with much writing probing into the role of financial management in each marketing procedures. Chapter four discusses the practice of finance and marketing fusion according to china's reality. Chapter one " the summary of insurance marketing", two major sections, the first is the definition given to marketing according to representative views of former scholars, which means the activities of enterprise as market research and study, market subdivision, product design, pricing, sample sales, promotion and after-sales service are carried out to protect consumer benefit to reach managing goal, and then a general discussion to value of insurance marketing. Chapter two discusses the meaning of insurance marketing, generalizes its concept and procedures to prepare for later discussion. Chapter two: "relation analysis of insurance marketing and financial management", it is mainly to give theoretical framework of finance marketing fusion. First section talks about main position of insurance marketing and finance management in enterprise management. Section two summarizes the contradiction and divergence. Mainly on the goal, expense, sales credit and market opportunity. The third is the key section aiming at how to unify business goal from the point of value maximization, on the basis of which analyzes their fusion and transformation, including five aspects financial means. Section three "practical operation of financial management in marketing" is the key part of discussion and writers contribution. Writer concentrates on each marketing procedure and the most important and influential part. First, in market opportunity, discusses financial index analysis of enterprise and its competitive businesses, as financial analysis is relatively simple with no difference and characteristics to others, the writer discusses financial index from profitability, managing lever, flowage and financial capability with reference of western financial management. Second, it is about business operation in insurance product design and development. first is the discussion on new product profitability with marginal analysis, cash circulation estimate, its role to evaluate product market risk with profit and loss balancing and management lever, at last is the finance feature of product life cycle and the influence of finance management on it. Section three is the about its operation in sample sales and promotion strategies. In sample sales it first talks about economic analysis of distribution channels on the profitability and capability. That is to first set the basic model of distribution channel for each business, on which to assess profitability with E/R. The specialty of in...