A Research On The Vehicle Insurance Competitive Strategy Of Ping An Property Insurance Co.,Ltd. A Branch

Vehicle insurance has a high degree of homogeneity,which shows that the insurance clauses and rates of each company are almost the same.So,the vehicle insurance market has always been fiercely competitive through price.In 2018,China Banking and Insurance Regulatory Commission issued a regulation that the actual vehicle insurance commission rate should be consistent with the scope of value and the rules of use reported by the CBRC.,which opened the prelude of rectifying and purifying the vehicle insurance business.It indicates that the competition of vehicle insurance will become more pluralistic.Meanwhile,facing the new car sales downturn,economic development slowdown,emerging Internet platforms flooding into the market to launch a shock,suppliers in the vehicle insurance market squeeze the operating profits,how should these property insurance companies deal with it?The researcher chooses Ping An Property Insurance Co.,Ltd.A Branch as the research object.Firstly,analyze the structure and external environment of the industry.Furthermore,according to Michael Porter's competitive strategy theory and value chain analysis tools,the thesis reveals the differences between Ping An and its main competitors' vehicle insurance business value activities,and calculates their competitive advantages and disadvantages.It is found that Ping An enjoys a cost advantage,which comes from customer positioning and matching value activities in the value chain of customer acquisition,marketing,acceptance and claim settlement.However,in the face of strong competitors,the disadvantage of household car cost,which accounts for up to 60%of the business,will inevitably affect the long-term development.So,Ping An should implement the cost-leading strategy,adjust the current business activities of household cars and control the proportion of intermediary business by vigorously developing direct distribution channel;actively integrate into the automobile service ecosystem and make use of the scientific research achievements of the group and headquarters to effectively control the sales expenditure,reduce the comprehensive compensation,operation and labor costs to build a dynamic and sustained cost advantage,actively prepare for the new round of challenges initiated by emerging enterprises and cross-border alliances,and consolidate the good vision of the first brand of vehicle insurance.