Research On Risk Management Pre-underwriting In Property Insurance Company

Chinese insurance industry has improved their ideas, ability structure, technology, service system and employee resource in the latest 20 years, in spite of the shortage of experience compared with those foreign companies. Considering this, they have to faced a direct competition from outsider when China entered into WTO.The fatal problem for a property insurance company is that almost all of these civil insurance companies are lack of the risk management pre-underwriting. Actually, the risk evaluation for the process is the critical process for property insurance to make business, and it is the first actor, which could affect the business quality and the ability to make profits from this. Especially in china, the insurance company has no more channel for their currency, this added the risk and also decreased the profits. There have some special cases that Chinese insurance companies could make good profits without better management for a long time because of the lower degree competition, so the market has been held by these top 3 civil insurance companies up to recently days, they are Chinese Property Insurance Co., Chinese Pacific Property Insurance Co. and Ping'an Property Insurance Company. In this case, customers have no more choice just accepted all this. While, if this case lasted so on there should be no profit for these civil insurance companies because of the competition from outside now.In this theme the writer has raised some proposals for the risk management pre-underwriting process in micro & macro area after the analysis of the process and take much on the decision of loss-control which is the most difficult process for most of insurance companies.The writer has also hoped that this analysis would benefit those people who are on the duty of loss-control, and through the introducing of the ideas of loss-control and the details about this process to improve the interior control, and hoped that these ideas would promote the risk management before they accepted one business, so they can upgrade their brand value and make more profits.