Tk Life Insurance Company, A Comprehensive Budget Management Study

Since China adopted the reform and opening-up policy,China insurance industry developed rapidly, playing an increasingly important role in the national economy. After more than ten years of development, life insurance industry is gradually dominate and become the main force to promote the development of the insurance industry.In the process of rapid development of life insurance industry, there have formed some problems and contradictions. The extensive mode of development have become prominent issues, also constrained the sustainable development of the industry. Extensive mode of development of domestic insurance companies focus too much emphasis on the performance of the premium,ignoring cost management.TaiKang Life Insurance Co., Ltd. is established in 1996, a national joint-stock insurance company, whose market share is 8.2% in 2010, ranking fifth in the domestic life insurance industry.It is typical of the new joint-stock insurance company representatives. Budget management organization system in TaiKang Life consists of the Budget Committee,group of budget management and budget implementation organization. Company operations and according to historical market conditions, a clear operational and financial objectives.Budget management combines "top-down" and "bottom-up" approach and using the company's SAP financial system to implement precontrol.In this paper, agency theory and strategic management theory are the logical starting point for an explanation of internal relations of budget management. By analyzing the organizational system of budget management and management process analysis, there are three questions:First, there is imperfect idea of the strategic budget management,budget management and strategic planning are out of line; Second, Performance evaluation system is imbalance,which affect the result of budget management; The third is aspects of the budget management system,such as the over-emphasis on the scale of orientation, the lax evaluations, deficiencies systematic control, a single methodology, communication is not smooth. Of the problems in budget management, the paper puts forward countermeasures and optimization ideas.By research and analysis of TK's comprehensive budget management, I hope to give life insurance companies to provide relevant practical and theoretical study has some reference material, to promote the development of a comprehensive budget management system and perfect in insurance companies.