Research On Competitive Strategy For Motor Vehicle Insurance Business

With the rapid economic development, many families have a car. By the end of 2014 China’s civilian automobile has reached 154.47 million(according to the 2014 National Economic and Social Development Statistics Bulletin), an increase of 12.4% over 2013, because of the rapid growth of the number of vehicles, vehicle insurance industry has plenty of room for development.According to Statistics of China Insurance Yearbook, operating a motor vehicle insurance company, motor vehicle insurance premium income accounted for more than 70% of its total premium of property insurance business. Motor vehicle insurance business has become an important factor affecting the size of the property insurance company premiums and operating efficiency, "good" and "bad" motor vehicle insurance business is directly related to the operating results of the entire property and casualty insurance industry.China Pacific Property Insurance Co., Ltd., Weihai Center branch was established in 1991, to enter the insurance market of Weihai has more than twenty years. It is currently the second largest property insurance company in Weihai. As of 2014 motor vehicle insurance business has exceeded 200 million, motor vehicle insurance premiums ranked second in Weihai market. Currently, there are 24 insurance companies on Weihai property insurance market, motor vehicle insurance business is contested. From 2010 to 2014, motor vehicle insurance premiums are increasing by 5%-20% per year in motor vehicle insurance market of Weihai. Motor vehicle insurance premiums of Weihai CPIC property insurance also grew for five consecutive years. With the increasing number of insurance companies and competition of motor vehicle insurance on the market of Weihai, Weihai CPIC property insurance motor vehicle insurance market share gradually decline, motor vehicle insurance business is facing a huge threat. The first quarter of 2015, it was reversed by Ping An insurance company and Market share dropped to third place. Its auto insurance comprehensive cost rate was raised from 88.1 percent in the first quarter of 2014 to 104.8% in this year. Now, the company has a loss of performance in auto insurance business. So, how to continuously improve the profitability of motor vehicle insurance in the fierce competition and how to maintain second position in auto insurance market of Weihai, this is an urgent problem to be solved.The writer is manager of auto insurance business in CPIC Insurance of Weihai.Through the study of Shandong University, the writer has have researched in competitive strategy about Weihai CPIC property insurance auto insurance business. This paper makes use of the actual situation of the strategic management theory with Weihai Pacific Insurance motor vehicles insurance business method. Correlation analysis using the strategic management of the integrated external competitive environment and internal management situation was analyzed Weihai CPIC Insurance. The problems of internal management are summarized. Through the study found Weihai CPIC property insurance motor vehicle insurance business has advantages in service network, customer resources, management strength, etc., but because of channel management confusion, a single marketing strategy, customer management platform imperfections and other defects limiting its competitive advantage of the play, leading to reduced competitiveness in the market. To this end, Weihai CPIC property insurance market to enhance the competitiveness of the market must be adjusted competitive strategy, and differentiation strategy is the inevitable choice of competitive strategy, which differentiated insurance underwriting management, cost management differentiation, customer management is the difference the implementation of the key differences. This paper makes a useful research about to establish and perfect the competition strategy mechanism in Pacific insurance market of Weihai.