The Research On The Influence Of Chinese Business Car Insurance Rate Reform For The Small And Medium-sized Insurance Companies

Since China's reform and opening up,with the car retains the quantity increases,in property insurance area,auto insurance business is always the main premium income source,accounting for more than 70% of prime operating revenue of property insurance company.By 2016,Mainland China has approved 75 insurance subject in operating property insurance.PICC,Ping An Insurance,Pacific Insurance,China United Property Insurance and China Life Insurance are the five biggest insurance companies,together accounting about 80% of the overall market share,resulting in the remaining small insurance companies struggling to compete for the remaining 20% of the market share.CIRC in 2015 released "Deepen the commercial vehicle insurance clauses and rates management system reform pilot program of work"(hereinafter referred to as the "the Reform").This paper mainly studies how the reform influences small insurance companies and what small and medium-sized companies should do to cope with the severe competitive environment.The paper has a profound and positive significance forauto insurance market to break monopoly status,as well as gradually build a healthy competition environment.In reference to both domestic and foreign research experience,I collect data from province which already implemented the Reform as the sample,and then set up the model and analyze it.Finally,conclusions is drawn based on researchers own enterprise management practice and experience.On the time series data of regression analysis showed that the commercial vehicle insurance reform until now has significantly affectedcomprehensive payment rate.However,effect on the premium income and the comprehensive cost rate is not significant.The cross-section regression and panel data regression analysis study found that the application of innovative thinking and tools have significantly improve the overall operating for the companies after the Reform,while customer service has no significant influence by now.Through analyzing the business after the Reform,the overall competitive environment is becoming increasingly grim.Small insurance companies must take action to turn the crisis to an opportunity and to provide for the survival and growth of the new period.At the end of the study,the paper gives suggestionsin five aspects for small and medium-sized companies in the premium income promotion,whole process control and reduce operating costs,financial efficiency claim control,personalized customer service and innovative thinking.The paper aims to help the small and medium-sized insurance companies,who have auto insurance business as the main business,to scientifically select the blue ocean market and develop business strategy,to achieve the company's survival and benign operation,and to contribute to the stability,multivariate and healthy developmentof the insurance market after the Reform.