Research On Competition Strategies In Automobile Insurance Market Of Domestic Insurance Companies In Tianjin

The economic development speed in China has being outstanding in the world sincethe beginning of21st century. As the second-largest economy worldwide, it maintainsat least7%GDP growth rate each year. As the sunrise industry, the insurance scale inChina has become the1St place in Asia; meanwhile the insurance industry hasincomparable chance to increase and development with other industries. Furthermore,following the rising of daily life requirements and residents income, automobileowners in China are growing, followed by consumer demands for automobileinsurance. Facing the huge market potential, the amount of insurance companiesengaged in automobile insurance business in China increased from19to52from2001to2012.More and more insurance companies have involved in the businesscompetition, which promote the marketization of automobile insurance business.By the end of2013, facing challenges from the cruel competition, PICC TianjinBranch Company is not only competing with old rivals PINGAN Insurance Companyand Pacific Insurance Company, but also meeting new challengers, another14insurance companies established in Tianjin. Especially after emergent enforcement ofvehicle restrictions in Tianjin at the end of2013, new automobile insurance businesshas been hard to develop. Facing various difficulties and challenges, how PICCTianjin branch company to make a strategic choice.This article is based on the analysis of domestic and foreign insurance industry.Combined Tianjin Branch itself, with its macro and micro environment of automobileinsurance business, this article conducts in-depth and detailed analysis of the externalconditions along with its advantages and disadvantages analysis. By using of PESTanalysis tool, we still believe the automobile insurance market has a brilliant future inTianjin. Under the major premise, by using of SWOT analysis and porter five modelanalysis tools, this article analyzes the strategic choices of PICC Tianjin Branchautomobile insurance business, and formulates feasible strategies. Through theanalysis, PICC Tianjin branch has certain advantages in the brand construction, talentteam construction, technological innovation, network resource construction,marketing channels, but there are disadvantages in management idea obsolete,enterprise organizational structure complex, channel management confusion, sales staff level uneven, employee development space constraints, which is leading to theinability of market competition. PICC Tianjin branch needs a positive and effectivestrategy adjustment and planning in order to establish a pattern of the biggestautomobile insurance, play professional advantage, emphasize to personalized,differentiation and customer service work, compensation cost control, development ofindividual agent business, community stores direct cooperation between banks andinsurance companies and other emerging business channels.Last but not the least, this article details forward-looking development and solutionsof automobile insurance business for PICC Tianjin branch, through organizationalstructure optimization, internal resources integration, to enhance market competitionof automobile insurance business market and maintain industry leader in the future.