Jiangxi DD Property Insurance Company Reduce The Cost Of Auto Insurance Claims Countermeasure Research

In recent years, as consumers have been buying more cars, the development of auto insurance has also been showing optimistic trend. According to “China Motor Vehicle Insurance Market Development Report(2014)” issued by Insurance Association of China, the proportion of auto insurance business in property insurance was 73.12% in 2014. By the end of 2014, among 16 property insurance companies in Jiangxi province, auto insurance premium income constitutes around 70% of their total insurance premium income. Auto insurance is the major form of insurance in property insurance companies, while in auto insurance operating cost, the proportion of operating cost for claim settlement is about 50%. In another word, how well claim settlement cost is managed can be an effective indicator for profitability of auto insurance business.The subject of this article is a property insurance company in Jiangxi, DD. As a small and medium sized property insurance company which has the 5th largest market share, DD sets the operation target of making a profit out of its auto insurance business. To help DD realize this goal, it will be worthwhile for us to study and analyze how we can effectively reduce cost for auto insurance claim settlement. This article analyzes the status quo of Jiangxi DD property insurance company's cost for auto insurance claim settlement. Based on the analysis, this article further discovers existing issues. Drawing experiences from major property insurance companies in the industry, this article will come up with specific solutions and countermeasures, so as to reach the goal of reducing cost for auto insurance claim settlement.