Research On The Competitive Strategy Of Z Property Insurance Company’s Sichuan Institutional Automobile Insurance Business

Since the reform and opening up,China’s automobile industry has developed vigorously.With the rapid growth of domestic motor vehicle ownership,the business of automobile-based commercial insurance(hereinafter referred to as automobile insurance)has also developed rapidly,and has long been ranked as the largest insurance category in the property insurance industry.However,in the rapid development,due to the immature development of the automobile insurance market,some problems have also been exposed.In order to promote the sound development of the automobile insurance market,the regulatory authorities have been sparing no effort to promote the marketization process of automobile insurance rates,and have promoted several automobile insurance market reforms with this as the main direction and goal.Since 2001,the market-oriented reform of vehicle insurance rates has been carried out three times,which is called "commercial vehicle fee reform" in the industry;In order to promote the rate marketization more comprehensively and deeply,the China Banking and Insurance Regulatory Commission launched the comprehensive reform of commercial vehicle insurance in September 2020,which is called "comprehensive reform of commercial vehicle" in the industry.After more than two years of implementation,the comprehensive reform of commercial vehicles has basically reached the expected goal of reform.For auto insurance consumers,the insurance liability and insurance amount increase,while the insurance costs to be paid are reduced,and consumers get more benefits and protection.However,for property insurance companies as the main body of auto insurance business,the release of the independent pricing authority of insurance companies,the relative freedom of auto insurance pricing,and the intensification of market competition have gradually led to the situation in which "the strong will be stronger" in the auto insurance market.Small and medium-sized insurance companies are facing difficulties such as the sluggish growth of the overall auto insurance business,especially the serious crowding of the market share of home vehicles by large companies,and the rising costs.The Sichuan branch of Z Insurance Company only operates car insurance business,and its business scale belongs to the category of small and medium-sized property insurance companies.Currently,it is facing common development problems in car insurance business among small and medium-sized property insurance companies after comprehensive reform,with negative business growth and increased cost pressure.In the face of fierce market competition after the comprehensive reform of commercial vehicles,this article hopes to develop a competitive strategy suitable for Z Company’s Sichuan organization through strategic analysis,to help it overcome the difficulties of business growth.In this paper,the author combs the three times of commercial vehicle fee reform and the process of comprehensive reform of commercial vehicle in China through literature retrieval,and analyzes the impact of comprehensive reform on the industry;Through Porter’s five forces model,this paper analyzes the external factors affecting the business development of Z Company’s Sichuan institution,presents the relevant status of this institution through data analysis and other methods,analyzes the resources and capabilities of it,as well as its own reasons for the current development obstacles,such as imperfect channel construction,unbalanced business geographical distribution,and failure to find differentiated market segments suitable for its own development;Uses SWOT analysis method to evaluate the advantages,disadvantages of Z Company’s Sichuan institution,and the opportunities and threats it faces,and formulate the focused Differentiation Competitive Strategy suitable for it.According to the current competitive situation of the Sichuan automobile insurance market and the current situation of Z Company’s Sichuan organization,in order to improve the current cost and development issues of the company,it is necessary to implement centralized strategies from three aspects: channel development,regional differences,and fuel types.Channel concentration strategy,achieving cost concentration through external channel cultivation and refinement of channel management models;By developing the full chain process of online channels and establishing new channel relationships,we can achieve differentiated and centralized channels.The strategy of regional differentiation and concentration,with a focus on laying out peripheral markets outside the provincial capital city of Chengdu,can not only increase premiums but also optimize costs.The differentiation and concentration strategy for the new energy vehicle sector focuses on the segmented fields of new energy vehicles and short range new energy vehicles,in order to achieve premium growth in emerging markets through better costs.Through the above specific strategic combinations,establish a competitive advantage,change the current negative growth situation,and achieve steady growth in premium income.In the context of the comprehensive reform of commercial vehicles,the business development problems faced by Company Z,as well as the factors restricting its development,are universal in the industry,similar to other small and medium-sized insurance companies in the market.Therefore,the research on the auto insurance business strategy of Company Z and the strategic plan based on it are of referential significance to other small and medium-sized property insurance companies in the market to a certain extent.