Automobile Insurance Business In Financial Difficulties And Its Countermeasures

Over the recent decade, Chinese automobile market has developed rapidly. By 2009, the production has broken through 10 million. Automobile insurance premiums increase correspondingly with a 20% average annual growth rate. It is curious that insurance company did not benefit from the increasing premiums but lose a lot. To find the reasons and the solutions, we must get down to the business of the automobile insurance. It is of great help to insurance company to achieve long-term development.The automobile insurance business which comes from automobile 4S inn is in a good condition because it is mostly used for family and the loss ratio should be commonly low. But in fact, the automobile insurance business is in the dilemma. On one hand, it needs the support of the business; on the other hand, the business loses a lot. It is necessary to find out what wrong with the automobile insurance, and seek measures to deal with it. After analyzing the cases in practical work, it has been found that lacking rules and standards produce monopoly characteristics in automobile industry, especially in automobile repair business. So a great deal of irregular operations has emerged. It is dangerous for it to erode the profits of insurance business and even to threat insurance company's survival.In order to improve the quality of the automobile insurance business and lower the loss ratio, effective measures must be taken. It is necessary for insurance company to adopt commercial insurance rate, to create good communication and cooperation with automobile 4S inn; the customer relationship management should be taken seriously. Any way, auto industry's regulation is also expected to break the monopoly market.From a new viewpoint, the article studies the unreasonable phenomenon that arise form an unequal relationship building between insurance company and automobile 4S inn. Automobile 4S inn plays a very important role in cooperation because of its strong marketing position. The unfavorable relationship weighs heavily to the profit of automobile insurance business. In order to break through the unfair relationship, the essence of insurance must be emphasized. The measures, such as changing customer's insurance concept, adopting marketing insurance rate, should be taken into consideration. There is a long way for insurance industry to go because it is still young in China. How to design marketing rate and how to regulate insurance market remains to be further studied.