Research On Risk Management Of Auto Insurance Business Of Sanguard Automobile Insurance Company

As the largest type of insurance in China’s property insurance industry,auto insurance occupies an important position in the development of property insurance companies.Since the implementation of the comprehensive reform of motor insurance in September 2020,the domestic auto insurance market pattern,business entities and practitioners have been subversively affected,and the auto insurance premiums of various property insurance companies have fallen off a cliff,and the loss ratio has risen sharply,resulting in a decrease in underwriting profits or even losses,which has brought severe challenges to the business growth of property insurance companies.At the same time,after the comprehensive reform of auto insurance,the Matthew effect in the property insurance industry is significant,and small and medium-sized property insurance companies are facing more difficult situations and higher risks in operation and management.Financial risk management of insurance companies is the core content of operation management.In recent years,regulators and industry associations have proposed a series of reform measures for insurance companies’ risk management,such as new accounting standards and a risk-oriented solvency system(hereinafter referred to as "second-generation risk management system"),and insurance companies have also actively optimized the financial cost structure,strengthened the company’s cash flow and investment management,and explored digital development methods to reduce corporate financial risks.However,in the face of increasing competitive pressures such as the comprehensive reform of auto insurance and the Matthew effect in the industry,insurance companies are facing development difficulties at present and in the future.Only by continuously strengthening the risk management level of insurance companies and reducing operating costs and financial risks can small and medium-sized property insurance companies obtain survival and development opportunities in an increasingly severe market environment.With the promulgation of the 2022 Government Work Report and the 14 th Five-Year Plan of the People’s Republic of China to further support innovation-driven development and prevent and resolve financial risks,there is a broader space for the development of the property insurance industry in digital transformation and risk management in the coming period,providing transformation opportunities for small and medium-sized property insurance companies to achieve high-quality development.The insurance company studied in this paper is a small and medium-sized property insurance company developing around the upstream and downstream industry chain of automobiles,mainly for Jilin,Sichuan,Shandong and other provinces to conduct business,auto insurance business as the company’s premium scale accounted for the highest proportion of the key business,the most frequent capital flow in the operation and management process,its risk management level has an extremely important impact on the company’s overall financial management ability.This paper selects the company’s auto insurance business as a typical financial risk management research,uses financial risk management theory,literature analysis method,case analysis method and other analysis methods to analyze the internal and external risk sources,causes and risk management status of Xin’an Auto Insurance Company,discusses targeted risk avoidance methods according to the causes,and puts forward risk management optimization measures such as improving the management information system of Xin’an Auto Insurance Company’s auto insurance business and strengthening capital operation management.The purpose is to better control the risks of motor insurance business and strengthen the financial risk management level of insurance companies.This paper will help to further deepen the understanding of risk and risk control of insurance companies,and is conducive to supplementing the construction of the financial risk management system of auto insurance business of small and medium-sized property insurance companies under the new situation.