Analysis Of The Economic Scale Of Dubon Insurance Co.,Ltd Henan Branch

The property insurance company has experienced rapid development for30years. New market entrants increase gradually. Small and medium-sized insurance company obtained great development opportunities. However, the new market entrants always ask for market scale increased rapidly through irrational competition. Disorderly competition in the entire industry market weakened the industry’s overall profitability.At this time Dubon insurance company Henan branch has ended the extensive operation stage start-up period, after a strategic adjustment, entered a rapid growth stage. Dubon insurance company proposed to do pioneering work the second time, taking the leap type development strategy. The rapid growth of the scale of business about Henan branch is a consensus. But the reserve provided the effects of premium fast expansion will reduce the current income, to reach the effect of profit evaluation.In order to solve the appropriate growth of Dubon insurance company Henan branch business scale problems, applying the theory of scale economy, constructs the input-output function. The empirical analysis of the national and Henan property insurance market, can draw the economic status of Chinese property insurance company, which can help Henan branch to solve the problem. Formulating development goals to achieve plays a major role in the business development. The different conclusion variable selection is not the same, and past research literature on variable selection of rough is different, with the fixed assets, combined and integrated cost as the input, earned premium and total assets as output, construct a cost function accords with the actual insurance company operation and evaluation. Analyzing Chinese property insurance company’s operating condition during2007and2012, to inspect the economies of scale of them. Analyzing Henan property insurance company’s operating condition during2008and2012, to inspect the economies of scale about provincial branch. Then, based on the economies of scale theory, combined with all state insurance Henan branch on their own business situation, can be drawn:Dubon insurance Henan branch has been in the growth stage. She should choose the way that expanding rapidly or mildly or mixed. In the process of the realization of the scale economy, Henan branch should also be concerned about the solvency adequacy, internal management, whether to keep up with foreign control ability and other factors, to ensure that the company can develop faster and better.