A Comparative Research On The Core Competence Of Chinese And Foreign Insurance Companies

Chinese insurance market has been pursuing the policy of opening to the outside world, the depth and breadth of which has currently received further expansion in recent years. Numerous foreign insurance companies enter into our country, and a fair competitive market between domestic and foreign insurance companies was gradually formed. To put it in perspective, while foreign insurance companies pose threats to the national insurance industry, they has brought advanced management concepts and operation models. According to factors that influence the core competence of insurance companies, Chinese insurance companies were supposed to analyze the merits and drawbacks of the core competence, based on knowing well strengths and weaknesses relative to foreign companies. Combining the actual demands and the realities of Chinese insurance market, Chinese insurance companies should use the successful experiences that foreign companies operated in Chinese insurance market for reference to target the cultivating and developing of core competence.This article defined the connotation of core competence of insurance company, then chose10Chinese insurance companies and10foreign insurance companies on large, small and medium-sized scale as bench-mark in domestic insurance market. On basis of internal factors and external factors which influence the core competence and the situations of each insurance company, this paper designs one set of evaluation index system for empirical analysis by hierarchical cluster analysis, principal component analysis and factor analysis. In terms of the score and rank each factor gains, the empirical results are analyzed in detail. Through the research, the writer hopes to find out methods to improve the core competence of Chinese insurance companies, and bring forward some suggestions to help these companies and national insurance industry grow faster and more healthily. This paper argues that we can take actions as follows:promoting insurance innovation, optimizing underwriting and claim settlement; expanding the scale of capital, improving the solvency; paying attention to personnel training, perfecting corporate culture; promoting insurance funds utilization, strengthening brand construction.