Research On The Comprehensive Budget Management Of China Life Insurance Company Changchun Banch

Nowadays, market competition is becoming more and more fierce. The marketof insurance companies keeps developing. Insurance companies have more chancesto grow. They also face more challenges. Especially for those insurance companiesowned by the state, the establishment and development of modern enterprise systembecomes urgent as well as difficult under the pressure of the competitive market. Asa kind of modern enterprise management system, comprehensive budgetmanagement has become crucial in the development of the internal management ofthe company. It plays a very important role in enhancing the competence of thecompany. Comprehensive budget management is used and developed by manyinsurance companies and it proves quite effective. However, it is worthwhile to studythe whether comprehensive budget management can function well as a method todevelop modern enterprise system and better internal control by state ownedinsurance companies. It is also worthwhile to study to what extent and how cancomprehensive budget management function well.This thesis is a thorough investigation and analysis of the establishment anddevelopment of overall budget management in the case of Changchun Branch ofChina Life Insurance Company Limited. By comparing the benefit of the companybefore and after the implement of overall budget management between2012and2014, it is clear that the benefit has improved after the implement of overall budgetmanagement. However, this comparison has also shown many weak points of overallbudget management. On one hand, from the outer environment, the insurance marketin Changchun is not highly developed and it is very competitive. This poses seriouschallenge to the implement of overall budget management of Changchun Branch ofChina Life Insurance Company Limited. On the other hand, from the innerenvironment, the level of fiscal management, the competence of the manager and the performance appraisal system all have an influence on the development of modernenterprise system and the improvement of benefit of Changchun Branch of ChinaLife Insurance Company Limited.There are four chapters in this thesis. The first chapter aims mainly deals withthe background, the aim and the method of this study. The second chapter is aboutthe basic information of Changchun Branch of China Life Insurance CompanyLimited, the implement and development of overall budget management and theproblem during the implement of overall budget management. The third chapterinvestigates the causes of the problem during the implement of overall budgetmanagement, which include the weakness in the fiscal infrastructure, the imperfectinner control of the company and the imperfect the mechanism of performanceappraisal. The last chapter proposes the prioritization scheme to deal with theproblem faced by Changchun Branch of China Life Insurance Company Limited,which is to reinforce the fiscal infrastructure, to establish control system of budget,to improve the mechanism of rewards and punishments and to advance theconstruction of the internal control of the company. It is hoped that by thesemeasures, the overall budget management will be enhanced, the strategic goal ofChangchun Branch of China Life Insurance Company Limited will be achieved andthe benefit of the company will be increased.