The Strategy Adopted By Hainan Taiping Life Insurance Co.,Ltd.to Optimize The Cost-profit Deficiency

As one of the three pillars of the modern financial system,The Insurance Industry not only promotes social stability,but also boosts economic development.It has always played an important role in the economic and social development.The operators of commercial insurance is enterprises,which make a profit by offering financial and insurance products,but most of China's Life Insurance companies cost budget and assessment of extensive caliber.The insurance products as an intangible goods,through the signing of a bilateral-obligation contract with the insured to achieve sales,different from tangible goods at a glance the statistical profitability.During the initial stage of insurance company,the premiums are small,a lot of manpower costs,workplace expenses and operating expenses are included in the current and can not be smooth,leading to insurance companies continued negative profits.So how to reduce the cost and profitability,become the industry to solve the problem.This thesis focuses on the strategy adopted by Hainan Taiping Life Insurance Co.,Ltd.to optimize the cost-profit deficiency.By going through other analyses concerning this subject,discusses how insurance income can be spread into insurance benefit expense,operation expense,reserve fund transfer and so on.The solution is that,for second-tier branches like Hainan Taiping Life Insurance Co.,Ltd.,the only way to enhance its operation performance is by increasing the cost-profit deficiency.Meanwhile,this paper tries to identify those key points to achieve this goal.This thesis is divided into 6 chapters.In the first chapter,through the background of the topic,the purpose and significance of the elaboration,the study of the value of the difference in the study of the difference;through the domestic and foreign literature review,leads to the research ideas,methods,innovations and deficiency.The second chapter analyzes the situation of China's life insurance industry.This chapter mainly introduces the basic concepts and the classification of cost-profit deficiency,the current situation and reasons of the difference management of Chinese and foreign life insurance companies.Next chapter digs deep into the existing situation of Taiping Life Insurance Company in Hainan,draws out the necessity of the difference of the company's business situation,and expounds the problems and reasons of the cost-profit deficiency.The fourth chapter cites the New York Expense Regulation,American General Protocols of Accounting,International Accounting Protocols and so on to illustrate the management experience.In the fifth chapter,according to the problems existing in the management of Hainan Province,this paper discusses the concrete measures to improve the company's cost-profit deficiency from four aspects in combination with the management experience of New York Expense Regulation.The final chapter is the conclusion of this thesis.Research shows that cost-profit deficiency has a lot to do with the operation and management mode of the company,and at the same time it involves the business structure,the business scale,customer service,human resource training,management,budget control,expense structure and so on.To expend the business scale,increase the continuality rate,optimize the training of office and front-line personnel,improve the sales expense structure,heighten the invest-outcome rate,while reducing the marginal invest,can help with the optimization of the cost-benefit structure,make positive cost-benefit rate and contribute to the company's success.