A Study In PICC Ltd. X Branch About Application Of Financial Sharing Service Model

With increasing economic volume,constantly promoting people's living standard,raising awareness for security,and steady development for insurance industry,insurance groups are established one after the other.People's Insurance Company of China(PICC)have its eight branches in succession,PICC Property and Casualty Company Limited(PICC P&C),PICC Reinsurance Company Limited(PICC Reinsurance),PICC Life Insurance Company Limited(PICC Life),PICC Asset Management Company Limited(PICC AMC),PICC Health Insurance Company Limited(PICC Health),Zhongsheng International Insurance Brokerage Limited,and etc.and overseas branches in London,New York,and etc.among which PICC established for the longest time,has the strongest economic foundation,and various insurance products have launched in succession.PICC has developed fast,however,management mechanism of company has lagged compared with the company's growth.With various types of business getting complicated,there are tremendous of all levels of branches and financial work overload,which not only increases labor cost,but also has lagging influence on increase of company benefits and scale.It becomes an important task for business management of insurance companies that how to simplify financial work,release work efficiency of finance staff and transform accounting function of finance staff into management,at the same time,upgrade the method of traditional financial management of insurance company,intensively develop simple and complicated work.Ministry of Finance pointed out that individual enterprises which have more branches under jurisdiction and have wide business development can attempt to set up financial shared service centers relying on information technology to realize financial intensification management according to their own needs in “Enterprise Accounting Informatization Practice” printed in No.20 finance and accounting(2013)on December 6,2013.By summarizing research data of financial shared service in development of companies of predecessors,based on theoretical basis of financial intensive management,transaction cost,financial shared service,business process reengineering and block chain technology,this paper discusses how financial shared service specifically applies in business operation and strategic development aimed at achieving the goal that approval of financial work can be fast processed,financial information can transfer smoothly,financial management capacity of the parent company can be increased,operating efficiency of insurance company can be improved,organizational structure of branch companies can be simplified.The paper selects PICC,representative in listed companies,to conduct actual case analysis,and makes data acquisition,site visits,personnel exchanges of X Branch of PICC in initial design phase,middle construction phase and later operation phase for setting up financial shared service center,by emphatically studying on its establishment of business strategy,construction of organizational structure,business process reengineering and research and development of information system,the paper finds bottleneck and drawbacks of present financial shared service mode in practical application of companies,by perfecting every business process of financial shared service center to realize true strategic value of financial shared service center of X branch of PICC.Finally,the paper brings forward logical suggestions of optimizing applications for financial shared service mode in company operation and summarizes and publicizes advanced experience.