Research On Profitability And Optimization Strategy For Insurance Companies After Rate Reform

Under the background of the continuous development of China's national economy and the continuous improvement of people's income,the number of motor vehicles in China has grown rapidly.Premium income from the auto insurance market has increased year by year.Vehicle insurance has become the largest insurance category in China's property insurance business and occupy an important position in the insurance industry as a whole.After the start of commercial motor vehicle insurance market reforming on clauses and premium rate,China's auto insurance market ushered in a tremendous transformation.The insurance liability after the fee reform was expanded,and the risk borne by the insurance company was further expanded.It is necessary to study the profitability and optimization strategy of the insurance company after market-oriented reforming of auto insurance.This article first reviews the development history and development status of China's motor vehicles,and collates the process of market-oriented reform of motor vehicle insurance rates.Based on the summaries of existing research literatures in domestic and foreign insurance market industries,this paper analyzes the profit models,profit sources,and profit characteristics of insurance companies.From the three perspectives of the insurance industry,insurance companies,and vehicle owners,this paper introduced the implementation of commercial vehicle insurance fee reform policies and their impact on them.The study finds that the change in market-oriented reforming of auto insurance has led to a significant reduction in the number of reported cases in the entire auto insurance industry.The commercial vehicle insurance fee reform gives more autonomy to insurance companies,making small and medium-sized insurance companies more flexible and maneuverable in the profit model.The auto insurance fee reform policy can better protect the owner's rights and interests,widen the range of service options available to the owner,and guide the owner to develop good driving habits,which will help reduce traffic accidents.At the same time,this article selects indexes such as net assets return rate,operating profit margin,property insurance claims ratio,and comprehensive cost rate,and conducts horizontal and vertical analysis of profitability,and deeply studies the current status of profitability of large,medium and small insurance companies taking the three giant insurance companies of China People's Insurance,China Ping An,and China Tai bao,and small and medium-sized insurance companies such as Tianan insurance company as examples.On this basis,this paper also collects panel data of insurance companies,sorts and selects representative variable indicators,and uses net asset yield as an explanatory variable to represent the profitability of the insurance company.In addition,this paper empirically analyzes the influencing factors of the profitability of insurance companies from different perspectives.Finally,this article gives suggestions from the six perspectives of insurance company brand building,channel construction,service quality,personnel training,product form,and cost control,in order to promote the smooth transition of insurance companies in this auto insurance fee reform and achieve sustainable development.