Research On Automobile Insurance Competitive Strategy-making For PICC After Rate Reform

In 1st June,2015, the China Insurance Regulatory Commission (CIRC) tired out the market oriented reform for commercial auto insurance rate (be called MORCAIR for short) at Shandong, Chongqing, Shanxi, Heilongjiang, Guangxi, and Qingdao. The reform for commercial auto insurance rate becomes a hot topic in the market. What kinds of chances and challenges that the Insurance Companies will face? And how can they solve these chances and challenges? Based on the stage discussed above, we take The Peoples Insurance Company of China Limited (PICC) as the research object. We first try to study the experience of the market oriented reform for commercial auto insurance rate at domestic and abroad. And then analyze the difference in the reforms carried out in this time and before. We will estimate the developing trend of the market after the reform for MORCAIR, and estimate the probable strategy adopted by the insurance companies. The strategic management tools will be used to analyze the chances and challenges for PICC. Based on the analysis, the strategy suggestion will be given for the PICC to respond to the reform.This thesis includes 7 chapters. The first Chapter is Introduction, including the research background, objective, methods, object, research significance, research contents, and technology roadmap. The second Chapter introduce the basic theory on competitive strategy, including the Potter’s five forces model and the Three Genetic Competitive Strategies. The third Chapter introduce the basic condition of the reform for the MORCAIR. I introduce the basic condition of the automobile insurance, the background of the reform, and the main contents of the reform. The forth Chapter analyze the influence caused by the MORCAIR to the consumer market of the automobile insurance. Especial to the consumer and the insurance companies. The fifth Chapter is the analysis of the influent factors to the competitive strategy of the automobile insurance for PICC. I introduce the business of automobile insurance and the competitive strategy for PICC according to the inner material, and use the PEST management tool to analyze the outer factors to the selection of competitive strategy for PICC facing to the market competition. The sixth Chapter discuss the selection of competitive strategy. I analyze the selection of competitive strategy based on SWOT method and propose some suggestion to PICC in the selection of competitive strategy. The seventh Chapter is conclusion. I conclude the thesis and show the future work.Based on the study and analysis, the author consider that the PICC has chances and challenges in the market oriented reform for commercial auto insurance rate. The biggest competitors are Ping An Property Insurance Company of China, Limited and Pacific Property Insurance Company of China, Limited. At the same time, the PICC should adjust the strategy for the intermediary channel, especial for the automobile distributor. In outside, the company should focus on the layout of channel, seizing the market. In inside, the company should strengthen the construction of platform. The superiority can be obtained when considering the factors in outside and inside simultaneously.The market oriented reform for commercial auto insurance rate is under test. The detailed rules and regulations may be adjusted when they are comprehensively promoted. However, the market is varied dynamically. The competitive strategy of each insurance company may change according to the variance of the market. Therefore, the research discussed in this thesis needs to be revised according to the variance of the market. I hope that the thesis has some reference values for the PICC and other insurance companies when they are formulating the automobile insurance competitive strategy under the reform for commercial auto insurance rate. I also hope that the thesis can promote the development of the insurance industry in china.