Picc Property Insurance Company Of The Business Organization Structure And Its Mode Of Exploration

Since its regaining of nation-wide business in 1978, PICC Property and Casualty Company Limited (referred as PICC hereafter) was the only insurance company of China until 1989 when China Pacific Insurance (Group) Co., Ltd. was founded. In 1991 Ping An Insurance (Group) Company of China. Ltd. was also founded, and the PICC began to face the nation-wide competition. But the really severe competition didn't come until China's entry into WTO in the year of 2001 when the country's insurance market was gradually opened, and various insurance companies came into being. From 1880 to 2000, there were only 15 insurance companies in China and 70% of them were only able to perform business in the coastline area. But from 2000 to 2005, the number of insurance companies amounted to 39, and 24 of them performed their business nation-wide. Since 2000, PICC has adjusted its business structures several times to adapt to the new changes in the insurance market. But due to the long-standing influence of the planned economy, as well as the lack of knowledge and experience of marketing economy, the adjusted structure in some occasions promoted, and in other occasions hampered the business development. It is especially worth mentioning that, due to the severe competition, the company's"Three-center Mode", which started in 2003, did not provide convenient and satisfactory services to the clients. Instead, it caused inconvenience both to the clients and the company employees.Under such circumstances, the author of this thesis proposed the necessity of a research on PICC's business structure and mode. The thesis is made up of three parts: Part I, introduction of the current situation and pointing out problems; Part II, seeking experience, lessons and theories concerned, and proposing the author's view points; Part III, an estimate of efficiency concerning the currently reforming measures and a perspective of additional measures in the future.In Part I, the author provides an introduction and analysis on the company's four periods of business structure adjustment from 1996 to 2006. Based on the results in different periods, the author points out the problems concerning the current business structure. At the same time, the author points out that, as the biggest insurance company with the longest history in China, PICC is not only shouldering the responsibility of promoting the insurance business of China, but also of seeking to the scientific business structure and its developing and reforming law both in theory and in practice. This thesis aims to have a general research on this subject.In Part II, the author introduces and comments on the business structures of big insurance companies both in China and abroad. Combining these experiences with concerned administrative theories, the author provides theoretical evidence and practical examples for the reforming of business structure of PICC. The author chooses two insurance companies as the case for analysis: China Pacific Insurance (Group) Co., Ltd. and Ping An Insurance (Group) Company of China. In terms of market share, office structure and the number of offices, the two companies are still in a disadvantageous position compared to PICC, but they are the main competitors of PICC. Furthermore, these two companies made a series of adjustments in the past two or three years and their business developed quicker than that of PICC. Based on the structure adjustments made by the two companies, the author analyzes the role of business structure in promoting the business development. Comparing their experiences with that of PICC, the author provides practical measures inferred from the two companies. In theory, based on the administrative and human resource knowledge acquired from the study, the author adopts the tool of department division, analyzes the decisive elements in the business structure, and points out that the company business structure and the staff arrangement should be compatible to the company's strategy, the market, and the company's own situation.In Part III, the author introduces the reformed structure of PICC. Combining the existing structure with the above-mentioned theoretical analysis, the author proposes the direction, steps and mode of the company's structure reform in the next five years or so. Furthermore, the author advocates that the reform is a dynamic process, and it should be adjusted from time to time based on the company's development strategy, the market and the company's own changes. Also the author points out that, to achieve the expected effects, additional matching policies should be provided. Finally, based on statistic analysis, the author affirms the achievements of the existing reform measures, and advocates that the company should take these measures as a new starting point to further research on PICC's reform and development.