A Study On Property Insurance Company Cost Stickiness

With the gradual release of policy dividend in insurance industry, coupled with the increasing risk consciousness among the public, the insurance industry is facing a fair market environment for further development. In order to promote the sustainable and healthy development of insurance companies, it is essential to understand and evaluate the operation and management. Meanwhile, cost management has always been an important part of enterprise management especially for property insurance companies in China. So the insurance company cost stickiness problem can not only make the manager have a clear understanding of the circumstances of the cost of the enterprise, but also its feedback from the institute of financial information can also reveal a operators how to manage the enterprise cost and whether the company's resource allocation is reasonable. Cost stickiness, refers to the enterprise cost along with the change of its sales in asymmetry, namely every increase or decrease as the volume of sales to one percent, its cost up then change a% or downward change b%, and the value of a is greater than the value of b.Firstly, this paper makes a review of the relevant foreign and domestic research on cost stickiness, and puts forward the innovation of this article. Additionally, the viscosity, the anti-viscosity and rigidity of cost and other relevant concepts are defined, and then on the basis of existing scholars' views of adjust cost and management optimistic expectations, and the principal-agent theory to the enterprise cost to brief analysis the cause of viscous, and then puts forward the general insurance enterprise cost management goal. Next, according to the relevant conclusions obtained from the previous researchers, the viscosity is a universal and objective factor existing in property insurance company. Therefore, insurance enterprise cost exist viscosity hypothesis is put forward, selecting 42 home insurance companies in China from 2008 to 2014, the relevant financial indicators as the research object, using the statistical model to test our country insurance company comprehensive cost and comprehensive compensation cost and comprehensive cost's existence of viscosity, and making an empirical conclusions; Finally, combining the internal and external environment of our insurance company survival, causes the result of the above analysis, and puts forward relevant policy Suggestions.In this article, through the empirical conclusions that we find our insurance company comprehensive's cost has a viscous characteristic, and then testing their component parts,at last, we also find that insurance company's comprehensive compensation cost have a viscosity factor and its comprehensive cost have a rigid factor, summing up the causes of property insurance company's cost viscous and rigid phenomenon and their own reality situation, and then putting forward the general insurance cost management goals of enterprise managers is the anti-viscous phenomenon, through contrast and analysis, this paper argues that this phenomenon is helpful to improve the management efficiency of insurance compames.According to empirical analysis of numerous scholars, costs or expenses of viscosity is both objective and universal existence, therefore, the insurance enterprise operators also is unable to avoid the cost or expense viscous phenomenon, however, enterprise managers should be good at finding the reason of the cost or expense viscous at the same time, combined with the development of enterprises, and putting forward the reasonable and feasible measures to improve the cost or expense viscosity of the adverse impact on the property insurance company, only in this way can the managers improve the operating performance of enterprises, thus promoting the insurance enterprise to be more sustained and efficient...