Beijing Branch Of China Life Insurance Group Health Esearch Strategic Cost Management

Over the past decade, the economic development in China has kept rapid pace.Our motherland has become the second largest economy in the world. With theeconomic development, the medical technology are developed rapidly. Many deadlydisease has been able to be cured or the lives of the patients can be prolonged.However, the medical expense is high. Therefore, people begin to make a plan tosolve the problem of their health cost. What can give their health a good protectionin the economy? It is no doubt that the group commercial health insurance is alow-cost and effective mean. Therefore, through nearly five decades of development,the group commercial health insurance has been a way that an organization attractsthe talented persons, which become the “golden handcuffs” to retain the talent.Although the size of the group health insurance market of Beijing Branch of theChina life Insurance company continues to expand, there exists some problems in itscost management, including the high rate of claims, smaller size of the overallbusiness, unscientific cost control means and too high operating costs. Therefore, wetry to introduce a new concept of strategic cost management on the group healthinsurance of Beijing Branch of the China life Insurance company, mainly with theanalytic hierarchy process, specification analysis, comparative analysis and empiricalanalysis, and so on. Is is brought how to manage the strategic cost on the group healthinsurance. How shall we better manage strategic cost in the insurance companies?Combined with the characteristics of the group health insurance business, we analysethree tools, strategic positioning analysis, value chain analysis and cost motivationanalysis, and focus on how to better manage strategic cost, combined with the actualsituation of their own in the insurance business. According to the experience of mywork in the Beijing Branch of the China life Insurance company for many years,combined with the cost management case of health insurance industry, a profounddiscussion is brought.