The Study On Veicle Insurance Profit Policy Of China Insurance Hebei Branch

Motor vehicle insurance is an important part of property insurance; the premium income of motor vehicle has always accounted for more than 70% of total property insurance premium income, therefore its profit and loss has a great impact on property insurance. So we can say, the benefit of motor vehicle insurance is a barometer of property insurance business. Thus it has become the obligation and mission of every insurance practitioner to research the rule of auto insurance business, to explore existing problems and causes of loss, and to search for the sound strategies of making profit.In 2003, with the adjustment of regulatory policy on auto insurance business by CIRC, a lot of property insurance company has begun to determine vehicle insurance variety, to determine their auto insurance rates and drafted auto insurance agence fees system. Since the Foundation of China United Property Insurance Company (CIC) Hebei Branch in 2004, in order to enlarge the scale of motor vehicle insurance premium income and to stand firmit in local market, it depended heavily on building new branches, high agent fees and low premium rate, which are simply and extensive, and make the development of business depend on commission charger. These problems, coming from both subjective and objective factors, may not only harm the internal management and profit of CIC Hebei Branch but also its sustainable development and raising of social public trustworthiness degree. To hold on the dominant position in competition, Hebei Branch has to seriously analyze the problems in the underwriting and settlement of claims, to find and implement the countermeasures.This essay tries to look beyond appearance for the essence. With the analyzing on the present situations of Auto Insurance market and CIC Hebei Branch's Auto Insurance business, it sums up, with available documents, the characters of changing and mainly problems.In the underwriting management links, it is weak in awareness of benefit and system construction,lack in management and control, the overall diathesis of stuff remain at a low level, passive in sales channel etc. In the claims management links, it failed to attach enough importance to settlement of claims; its management is extensive; the building of employee team is lag behind; resource allocation is not very rational, etc. Based on the exploration of causes of auto insurance' operation loss and the analysis on existing problems in the underwriting and claims links, this paper propose some profit countermeasures to overall raise the management level. Hopefully the research shall improve the profitability of CIC Hebei Branch'auto insurance business and competitiveness in local market, and promote the healthy development of insurance business.