Research On The Operation Model Of People Insurance Company Of China

Innovation on the operation and management of insurance enterprises in the word is growing vigorously due to the globalization and international competition of insurance service, along with the rapid development of modern information technology. As one of the biggest enterprises, People Insurance Company of China (PICC) has mobilized all positive factors to reengineer service process and optimize the organization systems. In2003Mckinsey was engaged in recombination of PICC to form a new operation style which was based on "3keys" composed of finance, accepted insurance and settlement of claims. In2006PICC had been updated organization models in the managements from service flows to insurance types, and founded7product lines including auto insurance. From2008the platforms for the operation and risk managements have been established in province branches of PICC to carry out transaction processing centrally. These running models had been playing important roles under certain circumstance until2009. After that, optimization is urgently needed for the original organization systems since the amount insured has exceeded one thousand billion and the marketing structures has changed. The drawbacks of the strategy management system caused key points couldn’t be performed on the whole strategy planning and administration, which has hindered implement of the achievements-related concept into the whole management. These include:(1) Loss of domination in some new marking because the innovation and perspective strategy planning are lack.(2) The running cost is very high due to a large number of the management grades. The management functions are undertaken by the headquarter, province branches and local administration which increase the percent of management faculty and brings the high cost of the company.(3) The marking portion has decreased by a large margin in recent years. The gap between PICC and the main opponent Ping An insurance company is gradually narrowed. The share of market in some centre cities has been exceeded by Ping An.Hence, Business Process Reengineering, organization flatness theories, Matrix management are proposed to address the problems mentioned above. Meanwhile, the running experience and ideas are drawn on from American International Underwriters (AIU), which is one of the co-operative corporations of PICC. Concerning of the unique of the inner management system of PICC, we propose four methods including strategy planning, organization system, operational procedure and risk management. The organization systems will be more concise and efficient when the running model of the finance insurance is optimized. Since the management grades are decreased, a quick information path from the tops to the basic units is expected, hence the head corporation has a more controllable management on the vocational work of all subordinate units of PICC. The ultimate goal of our company is to realize the setting-up of a "century-old shop" with top awareness and control ability of risk, first-class service and marking, first-rate management, and perfect profitability.In conclusion, we illustrated the key factors of the running models in this paper. Furthermore, we propose an optimized project for the operational running models combining the successful experience of top insurance enterprises with the practically vocational work of finance insurance. This attempt is believed to be helpful in promotion of the core competitiveness of PICC.