Research On The Profit Model Of AL Insurance Company

As China's expenditure for medical care and public health is rapidly growing,“A healthy China” has been upgraded into a national strategy.Commercial health insurance claims and payments account for only 3% of total medical expenditures in 2018.By comparing the commercial health insurance worldwide,China has a substantial potential and opportunity for developing health insurance business.Currently,favorable environment and conditions are already available for developing health insurance in China where there are tremendous potential and increasingly growing business demands.Despite of short history in developing commercial health insurance in China,both industry and enterprises have been optimizing and improving operation management,exhibiting significant commercial values.This is exactly where AL Insurance Company is surviving.The core issue and main line for AL Insurance Company's optimized profit model is the necessity,possibility and feasibility of optimization,as well as the design and implementation of the transformation plan.The necessity,possibility and feasibility are the premise and basis for optimizing profit model.If the company's operating and financial conditions meet the basic conditions required for optimization and the environment and conditions are favorable for optimization,then it can optimize existing profit model and propose an optimization plan.Hence,this article firstly horizontally analyzes the operating and financial conditions within five years after it was founded and properly horizontally compares with its profitability with the industry' average profitability as well as macro environment and conditions by integrating objectives with issues so as to reveal the necessity,possibility and feasibility of optimizing the profit model.It also proposes the implementation schemes and measures for an optimization plan.Based on above logic sequence,this paper firstly systematically sorts out and analyzes relevant concepts and theories and reveals the theoretical basis and support for optimizing the profit model of AL Insurance Company.Secondly,a comprehensive review is conducted for previous research results to demonstrate the necessity and value of this study.Thirdly,the corporate operation and finance of AL Insurance Company with the existing profit model are systematically and comprehensively analyzed and evaluated to illustrate the inherent conditions and rationality of optimizing its profit model from the perspectives of operation and finance.And then PEST and SWOT tools are used to systematically analyze the macro environment and conditions for optimizing the profit model of AL Insurance Company and reveal its favorable environment and conditions as well as unfavorable factors.Meanwhile,based on previous research results,this paper proposes a complete,systematic,targeted and feasible scheme for optimizing the profit model of AL Insurance Company mainly from client,product,marketing,service,incentive and partnership with medical institutions.Finally,a complete,systematic,highly targeted and feasible plan of optimizing the profit model of AL Insurance Company and supporting measures are proposed to ensure that the designed scheme of optimizing the profit model of AL Insurance Company can be well implemented.