Research On Profit Dilemma And Countermeasures Of Small And Medium-sized Insurance Companies Based On Transfer Cost

In August 2014,promulgated by the state council "about speed up the development of modern insurance services several opinions,put forward to speed up the development of modern insurance services,the grand goal of construction insurance powers and" much starker choices-and graver consequences-in planning "put forward by the" innovation,coordination,green,open,sharing "concept of development will be the development of the insurance industry to a higher strategic level.With the further development of the insurance reform,the marketing environment of the insurance industry has undergone earth-shaking changes,and the competition in the insurance market has become increasingly fierce.Small and medium-sized insurance companies is vital composition of China's insurance industry,insurance market is open,prosperous,and the basis of competition,is crucial to the development of the industry,thus further study of small and medium-sized insurance companies how to crack is to survive in the fierce market competition and obtain long-term development has become an important issue.China's insurance market is a very polarized market,and the Matthew effect on the insurance market is very significant.Leading insurance companies occupy the absolute dominant position in the insurance market with their absolute market position advantage and take the vast majority of the profits on the market.The market share of the top three giants in the life insurance market together exceeded 40%,while the market share of the top three giants in the property insurance market together exceeded 60%,leaving more than 100 small and medium-sized insurance companies to "carve up" the remaining market share.This shows that the oligopoly competition pattern of the insurance market is very obvious,and the concentration degree of the property insurance market is obviously higher than that of the life insurance market.On the one hand,the profits of head insurance enterprises in the industry are high,making a lot of money;On the other hand,most of the small and medium-sized new insurance companies in the industry are facing profit difficulties.How can the small and medium-sized insurance companies break out of this giant competition and find their own development? Therefore,it is of certain practical significance for the long-term development of small and medium-sized insurance companies to study the development status of small and medium-sized insurance companies,analyze the profit difficulties encountered in the development of these companies and the forming factors behind these difficulties,and then propose targeted solutions.The market share of small and medium-sized insurance companies is relatively low.However,the price paid by various small and medium-sized insurance companies to expand their market share is essentially to benefit customers,which weakens the profitability of small and medium-sized insurance companies.At the same time,the lower profit margin limits the ability of small and medium-sized insurance companies to improve their own services and management levels.The end result is the loss of customers.Therefore,small and medium-sized insurance companies are caught in the dilemma that the price increase leads to the loss of customers,and the price reduction cannot improve the existing situation.The key to the problem lies in the retention of customers.Of course,consumers always have the right and should choose high-quality and low-cost products.Considering the consumer's consumption characteristics,it becomes feasible for small and medium-sized insurance companies to use consumer transfer costs to break through the existing profit dilemma.Based on the results of previous studies on the theory of transfer cost,this paper tries to take HB property insurance company,a small and medium-sized insurance company in China,as the research object and the development of the company as the main line,analyzes the problems and causes of its profit dilemma,and puts forward Suggestions to improve the profit dilemma.This paper insists on applying the theory to the practical cases and analyzes the cases from the perspective of case analysis.Several typical aspects analysis from the company,to seek of small and medium-sized insurance companies under the current predicament of broken,namely,want to be in a competitive market is formed in the other company is difficult to imitate the competitive advantage,we must proceed from a strategic height,clarify its strategic positioning,set up in products,services,marketing and other aspects of the barriers that keep its core competence,strives for the survival after first seeks the development,eventually establish a comprehensive advantage.