P Life Insurance Company Guangdong Province Branch

When the market competition is severely stiff in domestic, life insurance companies must carry out the delicacy management, optimize allocation of resources and make profits in order to survive and develop. Comprehensive budget management which is introduced for life insurance companies many years is no more satisfy the enterprise developing management. Through the case analysis of P Life Insurance Company Guangdong branch, the paper study the optimization of the comprehensive budget management base on strategic.This paper introduces the strategic budget management theory to optimize the company budget management after analyzing the characteristics of life insurance companies.This paper analyses the company comprehensive budget management problems that exist in the practical work according to the strategic budget management. Then, the paper puts forward the optimization suggestions based on the theory of strategic budget management. First of all, the enterprise should make company strategic objectives and business ideas by analyzing the enterprise’s situation and development trend of industry. And then through using the balanced score card, strategic goal can be refined into operational indicators which form strategic budget index evaluation system. Secondly, introducing the budgeting that staffs participate in can improve the strategic budgeting scientifically. Thirdly, the enterprise should strengthen the cost process monitoring by the sort management of the fixed cost and variable cost. The enterprise should carry the delicacy accounting forward to provide date for analysis and process tracing. The enterprise can follow up project progress of the sales team construction, and set up early warning mechanism to implement the strategy. The enterprise should tighten the quality control of short-term insurance business to earn benefits and implement the strategy. The subordinate companies carry out budget analysis monthly to track the budget enforcement, and analyze input-output to optimize allocation of resources. Through the methods above, the enterprise can strengthen strategic budget implementation process monitoring. Furthermore, the corporation should improve the performance evaluation mechanism of strategic budget by strict assessment of strategic budget. Last but not least, the corporation should construct a favorable budget management environment. The employees must strengthen the awareness of budget management by company’s propaganda. At the same time, they must improve the level of budget management by company’s train. The corporation establishes the budget management organization to make sure budget management work smoothly.