Study On Profitability Promotion Strategy Of Automobile Insurance In P Property Insurance Company Dalian Branch

With rapid economic development and the improvement of people's living standards, the quantity of motor vehicle in China has grown year by year. By the end of the 2013, the quantity of motor vehicle in China reached at 137.41 million. During 5 years, the quantity of motor vehicle in China has increased 112.48%. The increase of the quantity of motor vehicle led an increase in consumption of motor vehicle insurance. In 2013, there are 52 insurance companies who can operate automobile insurance, and the annual auto insurance premiums reached 472.08 billion. The premium of automobile insurance has reached 72.84% of the total property insurance volume, and automobile insurance business has become the most important business of property insurance company.While with the biggest proportion of premium in property insurance business, the profitability of automobile insurance has been at a low level for a long time. In 2013, the loss of the automobile insurance business in China is 2.932 billion, and the underwriting profit margin is -0.58%. How to make the profitability of automobile insurance business match the scale of premium has become an issue of the property insurance operators.As a leading company in the insurance industry in Dalian, P property insurance company Dalian Branch has the mismatch problem of premium scale and profits in automobile business as well. Based on the analysis of P property insurance company Dalian Branch's automobile insurance operation data, the writer recognizes three important factors which can affect the company's automobile insurance profitability. First, in underwriting process, problems are the lax control and the increase of agency costs. Second, in claim process, problems are high claim price level and the innovation of claim fraud. Third, in financial management process, problems are relaxed financial audit and unreasonable assessment indicators.Through identifying factors that influence the company's automobile insurance operating profit, this paper proposes strategies which can improve automobile insurance profitability of P property insurance company Dalian Branch. Meanwhile, this article also indicates methods that can maintain the improvement of the automobile insurance profitability of company.The strategies proposed in this article on improving the profitability of P property insurance company Dalian Branch's automobile insurance business are mainly in three aspects. First, in underwriting aspect, standardize underwriting processes, develop new channels and achieve differentiation operation. Second, in claim aspect, enrich survey method and improve the system of inspection. Third, in financial management aspect, clarify the responsibilities of financial management and set scientific assessment indicators. Meanwhile, this paper also proposes methods that can maintain the improvement of the automobile insurance profitability of company. They are strengthening personal training, specifying standard repair prices and raising responsibility of executives.