The Impact And Response Of Auto Insurance Rate Marketization On Small And Medium-sized Property Insurance Companies

In the business operation of property insurance company,auto insurance business is undoubtedly a very important part.However,due to traditional auto insurance is regulated by the insurance regulator or the insurance industry association,the same insurance clause applies to the whole auto insurance industry,The property insurance company has almost no independent pricing power,this has resulted in the serious individual auto insurance variety,the overall lack of competitiveness of the industry.In such conditions,since 2001,,we carried out market-oriented reform of auto insurance rates in China.In 2007,approval by circ,PICC,Ping An Insurance and China Pacific Insurance have entered into the auto insurance industry clause,which is composed of A,B and C clauses.The auto insurance industry's terms and conditions were officially implemented on April 1 that year.By the measure,the competitive methods used by insurance companies to regulate,let the car insurance market more pure.At the same time,the car insurance rate marketization reform,increased the degree of competition among property insurance companies,also brought many challenges to the small and mediumsized property insurance company.This paper analysis the development of small and medium-sized property insurance companies,illuminates the risks of small and medium-sized property insurance companies,besides,theinfluence and the countermeasures are analyzed in detail.The main structure of this paper is as follows:The first chapter is the introduction part,which clarifies the purpose and significance of this research and summarizes the relevant researches at home and abroad;The second chapter overviewes the car insurance market environment for the reform of car insurance rates,demonstrates in detail the necessity of reforming the car insurance rate,and analyzed the influence of the reform of X company car insurance market;The third chapter analyzed the influence of the car insurance rate marketization to X property insurance company,according to he development of X company,this part firstly analysis the market environment,then summarizes the car insurance rate marketization's impact on A company's in long-term and short-term,positive impact and negative impact;The fourth chapter is the identification and assessment of X property insurance company management risk,this part identified the business risk of X company car insurance,then quantificating risk assessment model FAHP is established to further risk assessment for A auto insurance business;This paper has obtained the following conclusions:1)In the case of the auto insurance market of X property insurance company,the impact of the reform belt of auto insurance rate mainly reflects two aspects,one short term and one long term.The short-term impact mainly includes:the car insurance rate is greatly reduced,the comprehensive cost of auto insurance is increased,the car insurance market is more concentrated,the service differentiation increases.;While long-term effects include:product category is more diversified,more differentiation product structure,product service competition,subsequent value-added service more variety and new business changed significantly.2)Car insurance rate reform brings X property insurance company car insurance business positive effects include:conducive to company management,improve the capacity for differentiation,market segment,is advantageous to the company using the industry knowledge overflow,innovation profit model,is conducive to improve the level of actuarial and independent pricing power four aspects;Negative impact on performance is:the forced the company to work to reduce the comprehensive cost rate,premium income by the strong impact,force insurance companies to improve management ability and impact the original way of risk management and so on five aspects.3)X property insurance company car insurance risk main show is:risk management of insurance object,the enterprise internal control and external environmental management risk three main aspects.4)Through the fuzzy comprehensive evaluation,it can be seen that the risk of auto insurance business of X property insurance company belongs to 70<A<80,so the risk of existing risk management is "medium".The harm grade is "general",it will infringe upon the interests of the enterprise and cause the enterprise to run into trouble.5)Based on the SWOT analysis of X property insurance company,it provides targeted development advice to it.SO strategy:use the strength of the brand and enhance the management ability of the enterprise;WO strategy:to improve the financial management system,to open the mind,to diversify the way of operation,to change the pricing of auto insurance rate;ST strategy:optimize product design,focus on differentiated management,find the strengths of market segments,and further provide after-sales service;WT strategy:enhance marketing ability and make enterprises more competitive.