A Research Of Risk Engineering Management Strategy Of PAIC

With the rapid development of property insurance market in China, non-autoproperty insurance business gets a significant increase accordingly. Due to the pursuingfor more premium revenue and more marketing share, more competition will take placebetween insurance companies. Currently, main insurance companies can only make verypoor profit in enterprise property insurance, which takes the largest proportion innon-auto business. No-difference product, low price rate in a long period, high loss ratio,and higher demand from client, that all make the insurance company have to find a newway to satisfy client, improve business quality, and then obtain more competitionadvantage.Risk engineering management, which has been widely used in foreign insurancecompany, can provide a good solution for this issue. It is based on a technical riskengineering system, and can help the underwriter to evaluate the risk correctly and workout a reasonable insurance condition through risk survey and evaluation beforeunderwriting. Furthermore, with professional risk improvement recommendationthrough risk control service after underwriting, it can provide professional riskimprovement recommendation for client to help them to improve risk quality so thatreduce the claim loss, and increase insurance profit. Therefore, it makes an exactdouble-win not only for client to reduce property loss, but also for insurance companyfor a better profitability.PAIC has realized this issue. Risk engineering management department has beenestablished in head office level to develop the risk engineering function. The purpose ofthis dissertation is to orient the department’s strategic role in the whole developmentstrategy of PAIC, plan the strategy implementation on the function basis, and make adeep analysis for its importance during establishment of enterprise core competency.This dissertation will begin with customer value theory on the analysis for externaland internal condition, elaborate risk engineering function is helpful for maximize thecustomer value, win competency advantage for insurance company to facilitate a stableand sustainable development. Then by application of core competency theory, this function analysis is raised to a strategic level to proof it can match the integratedstrategy of the whole enterprise, and can become the element of core competency. Withthe right orientation, the objective for short term and long term can be set up, as well asthe practice procedure.The value of this dissertation is intended to provide a practicable guide for theimplementation of the risk engineering strategy for PAIC, and make a valuable researchin this fresh field for domestic insurance companies during the exploring for advancedrisk engineering management method.