Buffett inspired Hai Hang buys the Ming an insurance,

Create China GEICO

In America, in this riding in cars back country, and insurance companies, especially insurance dealing is common.

Go to work every morning, turn on the car radio, you can hear the cover enough (GEICO) company advertising intensive bombing. Advertising is a plot, feel a strange human and story, let a person humorous smile:

Such as ads:

A woman is noisy, to the man roared, "why did you betray me?"

The man say: "I have been together for a long time with her. Sorry. I want to break up.

A cry came from the woman......

Man: "in fact, the discourse with her is a good news for you."

The woman in the Speechless.

Man: "because of the change in Geico company car insurance, I saved a lot of money".

If the advertising is a breakup version, so advertising is action version two.

Chase, a man and a woman holding a walkie talkie to report the orientation to ride a motorcycle ride

Female: "there is a big ditch in front of you, you're going down"

Male: "ah?"

Female: "but I have a good news to tell you"

Male:"......"

Female: "because of the change in Geico company car insurance, I just saved a lot of money"

Cover enough (GEICO) the company's advertising position of frequent, successful to allow consumers to each sentence it memorize, cover enough (GEICO) image of the company placed in the mind.

Buffett is valued cover enough for half a century

Finished cover enough (GEICO) products, to talk about, and the cover enough (GEICO) Warren Buffett profound friendship with the company.

Since the GEICO Motors Insurance Corporation, investment is the investment industry a classic case, Warren Buffett send our experience is, attention is not profit but cost, the GEICO Motors Insurance Corporation as an example.

GEICO is a pioneer in automobile insurance industry marketing mode, the first choice of government employees and other key development object, they have a stable life, life cautious security. GEICO directly through the mail to buy insurance, greatly undercut prices to attract more customers, and customers to the insurance rate is also very.

All along, the auto insurance industry to a sales agent, the agent to pay the Commission's practice, and the Commission far beyond the traditional 15% of premium income. GEICO through direct way, advance rapidly seize the market blue ocean, and other insurance companies because of unwilling to give up has some agent distribution channels and damage to the original market share, there is no way to imitate GEICO, which can keep the cost advantage.

Good GEICO Warren Buffett fast, to several times in 1980 to buy GEICO shares in 1976, a total of 47140000 dollars, companies continue to repurchase accounted for half of the total share capital.

"GEICO's performance record is the best global insurance company, or even than Berkshire's business records but also much better. GEICO is the most important factor for success, is the company to operating costs to a minimum level, which makes it with all other Motors Insurance Corporation lover than with extraordinary. In 1986 GEICO companies underwriting expenses and loss adjustment expenses to revenue ratio of only 23x5%. Many large insurers comprehensive cost ratio to be higher than 15% GEICO. Even Allstate and State Farm auto insurance direct sales company cost is obviously higher than that of GEICO."

In 1986, Buffett expounded the GEICO in the annual report has become the most important cause of the global performance of the best insurance company is the cost advantage.

10 years later, Buffett's Berkshire paid $2300000000 for the GEICO and 50% shares, to turn it into a wholly owned. This means that Buffett had a $47140000 investment in 20 years to earn 50 times. From the past until now, like GEICO, Buffett and GEICO forged close relations between earn basin full earthen bowl.

The vision to do China cover enough HNA

America GEICO miracle in China perfect derived? Chinese can create their own GEICO?

Not long ago, aviation giant that Hai Hang buys China Insurance News to attract people eyeball insurance research.

In September 21, 2010, the Ming An insurance listing Tianjin Property Trading Center, all rights to sell its China matters publicly listed transactions, Project No. 1201CSW20100916001, publicly traded from September 21st to the end of October 25th.

Under the mysterious contested and many funds, venture capital, aviation giant sea smooth win. In October 29th, the Ming An insurance before the big shareholders China Taiping Insurance announcement said, the ultimate buyer is composed of 6 enterprises consortium, including Haikou Meilan International Airport Co. Ltd., Bohai International Trust Company Limited, Shanghai Hengjiameilian Development Co. Ltd., Ningbo Yunsheng import and Export Co., Ltd., Shaanxi Dongling Industry & Trade Group Limited by Share Ltd and Jindaxin Company limited by guarantee, to buy the shares ratios were 20%, 20%, 20%, 20%, 15% and 5%.

In the fierce competition in the insurance industry, the most important competition is cost competition. And in the age of the Internet, online shopping is undoubtedly the most flat and low cost operation mode, which also attracted many automobile enterprises to enter the online shopping sales, while the Ming An insurance in this regard is gone furthest, even independent of the www.4000123123.com construction of independent network operation platform pin this, hope to be able to catch up from behind in the Internet age.

At the same time, the China in the past few years, strict cost management, input power of laying and supporting channels, has laid a good foundation for maintaining low cost operation trend. While the domestic capital predators HNA shot, is inspired by Buffett, and in the auto insurance online shopping this force. Although vision Chinese GEICO has a long way to go, but the sea in support of the Ming An insurance is worth looking forward to.