Establish A Management Performance Evaluation System For Insurance Companies In China To Explore

With China's entry into WTO, the insurance industry which is the forthgoer in our country will face further drastic competition. China's insurance market which can be called the biggest, youngest and most potential market in the world,has great attraction with the foreign insurance companies. What should China insurance companies do to face the challenge and grasp the chance in the drastic competition becomes the primary question to consider the managers. The author thinks that improving the competition of our insurance companies is on based on the internal control over the companies, so strengthening the internal control over the companies is the key point to improve the marketing competitive power of companies. Modernized insurance companies should take advanced management patterns because current international insurance marketing competition is based on the modernized insurance companies. Tendency of the pattern to manage insurance companies is to implement strategic management. Though strategic control is the last step of strategic management, it has a great effect on other steps and so we should think much of it to guarantee the realization of the strategic goal. Performance valuation system of insurance companies is the concrete system to strategically control the insurance companies. So founding performance valuation system is the most important part of modernized reformation of our insurance companies and the necessary premise to make our insurance companies involved in the international insurance marketing competition. What we should do to implement strategic management and set up performance valuation system is to use successful foreign experience as reference combined with our current situation, which must be based onthe characteristics of insurance companies' management. Our insurance companies should found a performance valuation system with Chinese characteristics. Performance valuation system of insurance companies discussed in this thesis to reflect different managers' performance through setting up a series of appraisal indexes and make comparisons with the industry's indexes which have been predetermined in order to realize the goal of economic benefit and social benefit of insurance companies better. By this way we can appraise management efficiency and benefit of different departments, so does the managers' performance. It can make managers of insurance companies give impersonal and fair evaluation on the efficiency and benefit of insurance management, which belongs to internal controlling system of insurance companies. And it is also different from assessing system set up with subjectivity.This thesis mainly consists of three chapters. The first chapter paves the way for the whole thesis, which introduces the common theory of performance valuation system , The second chapter theoretically constructs the performance valuation system of enterprises; The third chapter is the keystone to discourse upon and focus on the theoretical and practical problems of setting up performance valuation system of our insurance companies. The first chapter whose title is "Theoretical problems of performance valuation system" includes three parts. Firstly, it introduces some theories of performance valuation which are strategic management theory of enterprises, strategic controlling theory of enterprises and performance valuation system of enterprise. Secondly, it discusses the theoretical origin performance system of enterprises from economics and management point and discloses the relationship among "biggest" and " smallest" rule, submission and commission theory, management theory and performance valuation, so we can exactly tell the origin of the performance valuation. Thirdly, it analyses the inevitability and feasibilityof setting up administrative performance valuation system in our insurance companies. The second chapter theoretically constructs the performance valuation system of insurance company, which includes the construction of appraisal goal and appraisal comp...