Activity-based Cost Method Application In A Internet Insurance Company

Insurance industry,as a sunrise industry in the financial sector,has an important position in the financial market.With the popularity of the Internet,the Internet has attracted more and more attention to the form of insurance.In just the end of the NPC and CPPCC,Premier Li Keqiang pointed out in the government work report,to promote the further development of the "Internet +",to promote the digital to accelerate economic growth,make enterprise wide benefit,people generally benefit,at the same time,expand the scale of the Internet insurance has fully proved the potential market,in 2015 the entire Internet insurance premium income of 222 billion 300 million yuan.An increase of nearly 69 times higher than in 2011,but only the first half of 2016,the premium income has reached 143 billion 110 million yuan.The emerging Internet insurance companies compared to the traditional insurance company,its sales and product design of a huge change,so the traditional insurance operations are no longer suitable for the new Internet insurance company.We can see that the cost of insurance products compared to other financial products with a lot of special,the product itself,the actuarial compensation rate is extremely complex,and the product sales,also has a heavy effect on the channel cost,user education.The homework cost method as a new method of cost accounting,compared to other more primitive cost accounting methods,can more clearly each part of the expenses reasonably get the final calculation of specific product cost.Clear cost accounting is conducive to improving the company’s decision-making level,for the rapid iteration of the product,the company’s business direction adjustment is of great significance.In this paper,A company as a case,the A company’s cost accounting process combined with the company’s business situation A depth analysis,access to the actual data of A,and accounting.The article launches the elaboration from three parts.The first part from the core concept of ABC as part of theory,introduces its theory research and principle;the second part will be the cost of operation law and the combination of the insurance industry,talked about the feasibility and necessity of the implementation of activity-based costing of the insurance industry;the third part combined with the specific case of A insurance company,analyzed the status quo the current cost accounting of A company and put forward the operation scheme after the application of the cost method,the reasonable suggestions are given.The study found that by ABC,A can quickly learn the cost of each product,and timely adjustment of product strategy,adjust the company’s business strategy at the same time,can be found to cut costs,so as to enhance the level of profitability.This paper innovatively applies ABC to Internet insurance industry,according to industry pain points innovatively analyzed the cost accounting,had not been conducted with people in this area,has important significance for the insurance industry and the Internet application of abc.With the Internet industry and traditional industries,will make the company more and more low direct costs,indirect costs more and more high,and with the application of the Internet in various industries to deepen,there will be more and more industry and company according to the new operating mode,adjust the way of cost accounting,cost accounting methods for science the company is rapidly gaining competitiveness in the industry,and hope this study can be of other "Internet plus" industry to help in the selection of cost accounting method.