In recent years, with the rapid growth of motor vehicles in our society ownership, motor vehicle insurance develop continuously, insurance premium income for property insurance premium income in the proportion gradually expanded, has become one of the pillars of the insurance company insurance. However, in the premium growth at the same time, auto insurance business loss making, low profitability, directly affects the healthy, sustainable development of the insurance industry. How in the insurance business, not only to maintain the pace of development of good, and constantly improve their own profitability, are increasingly attracted widespread concern and attention. The survey found, insurance companies in a 2008 -2010 annual Juxian rate (ratio, ratio of operating expenses, management fees and) were 103%, 95%, 88%, the comprehensive cost rate is declining, but adding other costs on business taxes, loss reserve, the insurance business in recent years are in a losses.

Analysis of the causes of a low level of profitability, auto insurance

(a) the auto insurance market competition environment

1, malignant price competition leads to low premium. Because the insurance company insurance business the lack of diversity, product homogeneity serious, to expand market share, increase market share, develop blindly price competition between the insurance companies, ignore the brand, service, technology competition, make price war greatly, the competition level is low, leading to low rates of.

2, intermediary market confusion. The insurance business is a large part of the professional or a concurrent business insurance intermediary Proxy Companies of Proxy Companies, intermediary Proxy Companies holds a lot of insurance customer information, determines the insurance company insurance business scale, to allow insurance companies to cater to the intermediary Proxy Companies, pay insurance fees, and even illegal intermediary Proxy Companies collude with each other, the fictional agent transactions, cash fee. The insurance intermediary market confusion leads to auto insurance agency fees rising, auto insurance business of serious cost overruns.

3, the insurance fraud ineffective combat. Although the law clearly stipulates the serious consequences of insurance fraud, but in actual operation, often without the insurance fraud behavior of every hue into practice, to detect the fraud cases to return the most fraudulent insurance accident, basic did not take the corresponding legal and economic means to be punished, virtually contributed cases of insurance fraud repeatedly appear, serious harm to the insurance company's survival environment.

(two) the internal management of insurance company at

1, relax underwriting, underwriting quality is low. Insurance companies in order to seize more market share to the insured automobile insurance, issued many preferential conditions, even at the expense of the company's overall interests and long-term interests, relaxed underwriting conditions, reduce the underwriting quality. For example: do not comply with the conditions of vehicles is still writing according to the normal standard; not to have to pay no heed the insured vehicle insurance; moral risk; to change the nature of the use of underwriting. Cover pass lax supervision, not only increased the risk factor of underwriting vehicle, but also to the subsequent claims brought many hidden dangers, to further reduce insurance benefits.

2, operation cost control is poor, the erosion of profits space. Since the domestic insurance companies are still in the primary stage of scale oriented, internal management is more extensive, for their own operating expenses budget arrangement unreasonable, cost budget binding deficiencies, especially the cost assessment mechanism on the branches is not perfect, there are branches in a variety of means inflated costs management loopholes, resulting in operating expenses rigid growth, auto insurance business profit margins have been seriously squeezed. The survey found, insurance companies in the first half of 2011 2008 - auto insurance business cost rate is as high as 30%.

There are risks, vulnerability 3 claim links, high loss ratio. One is, site survey is poor, cause loss of accident process of fuzzy, the loss is not clear, the responsibility can not be confirmed, the claim operation risks and unnecessary trouble. At the same time, because the site survey follow-up is not timely, can not get the scene of the accident liability basis, to receive only the traffic police department is not conducive to the results that the responsibility of the insurance companies and processing, bring unnecessary losses to the insurance company. Two, the loss of the lack of necessary supervision and restriction mechanism, resulting in the situation of vehicle accessories price differences, the real situation of vehicle repair quotation above, increase the compensation cost. Supervision is not in place may also cause a loss of personnel against the occupation moral, and vehicle repair factory with high repair costs, damage the interests of insurance companies. The three is, claims management loopholes, to individual households false claims to an opportunity, is also difficult to eliminate the individual branches of an insurance company "to compensate hurried Bao", "human settlement", excess such violations occur. The survey found, an insurance company in 2008 the first half of 2011, the compensation rate were 71%, 64%, 52%, 54%, although the decline, but still high.

(three) the social environment of the auto insurance business disadvantageous

1, the road traffic accident rate has continued to rise. In recent years, with the improvement of people's living standard and increasing the purchasing power of the motor vehicle population is increasing rapidly, society. At the same time, the novice is more and more, more and more complex and road traffic conditions, traffic safety awareness is not strong, the frequent occurrence of traffic accidents.

The 2 injured cases, compensation costs increased year by year. In recent years, the traffic accident third people injury compensation standards greatly improved. Death compensation costs increased from 10 years to 20 years, death compensation, medical expenses, disability compensation, was dependent for living expenses, lost income, nursing fees, fee, hospital food subsidies for basic standard to rise year by year, the insurance company pays the cost multiplier.

3, accident responsibility is unfair. In the traffic accident, traffic police department will consider whether the vehicle insurance, the insured vehicle side the delimitation of responsibilities proportion often larger or under full responsibility. At the same time, in the case, the court from the building of a harmonious society in the overall situation, the insurance contract is the format contract, most insurance companies shall determine. The police and the court is not conducive to the insurance company's decision will undoubtedly increase the insurance company's additional compensation cost.

Two, measures to improve the profitability of insurance

(a) changing management ideas, enhance core competitiveness.

In the domestic insurance market competition pattern of insurance diversification, the competition will quickly evolve into brand competition, service quality competition, who can set up a good brand image, to provide timely, perfect service, who occupies the initiative in market competition. Therefore, the insurance company should change their management concepts, strategic focus auto business development to promote brand image and improve the service level. To strengthen brand building and promotion, to provide quality and efficient services, especially timely, convenient settlement services, enhance the core competitiveness of insurance companies, so that in the fierce competition in order to improve market share, cycle out of the vicious price competition.

(two) establish the concept of benefit, improve the management level of refinement.

First of all, to establish the concept of benefit, strengthening cost management and control. To change the pure pursuit of market share of wrong ideas, to improve the effectiveness of the company as a conscious behavior of employees; to accurately calculate the compensation rate, cost rate, calculated breakeven point, so as to judge the single business to undertake or refuse; to make efforts to reduce the channel cost, increase the electric pin, net sales and other emerging channels development efforts, improve the ability to obtain high quality dispersion of customers, give full play to the advantages of the new channel save marketing costs; to strengthen the management cost control, perfect branch business costs, budget, examination and supervision system, impose severe penalties on virtual columns, occupied, to obtain the cost behavior.

Secondly, to grasp the underwriting management. One is to adhere to the risk, the selection principle. To establish a set of scientific and effective risk classification index system, using a unified national insurance information platform, according to the situation of the development of different vehicle risk underwriting pricing policy. Focus on the business of underwriting losses, subject to the conditions and strictly control the loss of business. The two is, to strictly implement the uniform underwriting system. Strengthen underwriting strength, establish the authority of the underwriting work, do every single need nuclear. Audit and control the strengthening input policy risk, ensure that the original data entry is reliable. To strengthen the vehicle to check the information, especially the type, use fixed number of year, whether operating vehicle information, will be directly related to the quality of underwriting and claim risk. The three is, to do the analysis and utilization of data. The dynamic monitoring of the operation of insurance, risk early warning system of major index, adjusted business strategy, ensure stable operation of insurance business; at the same time, to analyze customer information utilization, actively seek for rates high, out of less quality customers, the existing moral hazard, high loss rate of customer to prevent underwriting risk.

Thirdly, to improve the level of claim management. One is to strengthen the team construction, claims, improve the staff's sense of responsibility and comprehensive quality. Through a variety of ways to enrich the investigation power; take learning, training, exchange of experience and other methods, to improve the Claims Officer service quality; increase the work quality claims personnel assessment; heavy, large and highly specialized cases, may invite relevant institutions professional personnel to assist set loss, improve the quality of the loss. Two, clear responsibility, to implement the target responsibility system. The Claims Officer, department head loss permissions, loss amount larger accident by the manager in charge of in charge. To claim full link control target further tasks to each position of the claims department. On the liability claims will be damaged in error, damage scope and therefore prices too high, causing the reparations, to be responsible, to bear the corresponding economic loss. Three, to improve the site survey, case investigation to early intervention, prevent fraud cases, efforts to reduce claims in the water.

(three) to strengthen the supervision and industry self-discipline

Firstly, the insurance supervision departments should strengthen supervision and punishment of the illegal acts of the insurance company. The insurance company can reduce the premium, arbitrarily raising the premium discounts, free to expand the insurance liability, illegal spending fee, false claims and other violations are intensive supervision and inspection, and increase the punishment.

Secondly, resolutely governance of insurance intermediary market chaos. By investigating a number of illegal operation of the insurance intermediary Proxy Companies, resolutely banned to seriously disrupt the market order of the insurance intermediary Proxy Companies, thereby forming a deterrent to the insurance intermediary market, reverse confusion.

Third, play the role of industry self-regulation, to guide the insurance market in order to return to normal. The insurance industry association shall be signed by the organization of auto insurance market conduct self-discipline strictly punish, through self regulatory acts of unfair competition in insurance market, through the development of industry guidance to guide the agency fee return to a reasonable level, through the platform of communication and coordination platform to guide the insurance company to properly resolve conflicts.

(four) to create a good external environment