Car Insurance Profit Promotion Research Of YQ Insurance Company

Since the implement of the Automobile Insurance Reform policy released by Chinese government in 2015,the earning performance of auto insurance sector has encountered unmet challenges,featuring by most property insurance companies bearing losses of their auto insurance business with earning condition continuing to be diverged.The comprehensive cost ratios of market auto insurance from 2015 to 2018 were 99.38%,99.07%,98.96%,and 99.86%.In the first quarter of 2019,the auto insurance underwriting loss was nearly 100 million yuan.Auto insurance business contributes for an unshakable dominance in the property insurance industry,and its profitability plays a decisive role in the profitability of property insurance companies.The issue of auto insurance profitability has risen a serious challenge for property insurance companies.From the perspective of marketing distribution channel of auto insurance business as the entry point,This paper analyzes YQ Insurance Company.From three aspects of company operation overview,auto insurance status and profitability,this paper analyzes the development status of YQ insurance company as well as its current status of auto insurance profitability,raises the issue of profitability and explores the deep reasons.This paper analyzes the auto insurance profit problem from a new perspective,the marketing distribution channel perspective,includes its internal channel clearing and pricing issues and budget,and external channel market layout and cost strategy issues.Finally,it proposes the corresponding improvement measures,in order to provide reference suggestions for the profitability improvement of property insurance companies.As an empirical study,this paper combines the management and profitability of insurance companies,proposing four suggestions for profitability improvement.Firstly,to set up the right target and responsibility of marketing distribution channel,the company need to optimize channel layout,and improve profitability of company through channel layout.Secondly,implement channel clearing.Clarify the business boundaries of each channel and develop channel clearing rules.Improve the corresponding organizational structure,performance appraisal system and synergy to ensure the improvement of profitability of each channel.Thirdly,improve channels pricing power,cost management capabilities,and efficiency of resource management.Improve profitability through front-to-back linkage.Finally,establish a comprehensive budget management system that combines financial budget and business budget,identify roles and responsibilities of each people within the system,improve the professionalism of budget management capabilities,and clarify the content and objectives of the entire process.Combining profitability research with the channel management of YQ Insurance Co.,Ltd,this paper analyzes how to improve company profitability through channel management,which highly represents the innovation and value of this article.