Study On Cost Control Of Life-insurance Company

Nowadays, it' s critical for enterprises to obtain the cost superiority under the intense competition. Under the competition of insurance industry, how to reduce the cost is the key for enterprises to create profit, and how to calculate, control and inspect the cost is the most important factor in finance management. The main target of this article is how to increase the supply of market knowledge, management knowledge and finance knowledge , to reduce and avoid resource waste, to control the expense cost so as to make the insurance company develop healthy and stably.Examples are used to make analysis of the typical company, which, mainly concerned on the object of cost control, cost drives and cost control tools in order to offer theatrical evidence and performance direction for the life insurance.This article is divided into five parts. The first part is the introduction, which brings out the background and theme of the research. The second chapter is the bibliography comment, and it reviews the general situation and tendency about internal and external research on cost control at present, and the research tendency on cost control of the life insurance. The third part is the design thoughts of research method. Taking CPIC (China Pacific Insurance (group) Co., Ltd.) as the case, it indicates methods of cost control for domestic advanced life-insurance company and basic theory problems of management. The fourth chapter contains cost control module and its proof, which is an important part of the article. Throughout the case study, we analyze the motivation of cost control, evaluate present methods , find out the limitation, and discuss more effective and performable ways of cost control, so that we could build cost management system and breakout present control model, which based on cost analysis of insurance company and direction of domestic and overseas advanced performance method. At the same time, we also analyze and prove the budget managenment which is the condition of cost control module. The fifth part contains the conclusion and some reasonable suggestions.The creation of the article is that: first it points out the cost driver of the insurance, second it indicates the thread of the expense module management, which widens the view of the cost management both in theory and in practice.