Profit model of insurance company

The profit model of insurance company The actual profit of insurance company mainly comes from premium income plus the difference between future actual investment income and actual cost expenditure. Specifically, it can be divided into three spreads, namely, spread, handling fee difference, unexpected difference (called death difference in life insurance industry), and a surrender premium difference, which is not a profit model, but also one of the sources of profit.

1) spread: that is, the difference between the interest of the policy value actually paid by the insurance company to the insured and the actual investment income of the insurance company during the insurance period. This income is similar to the deposit-loan spread of banks, but it is very different. The main reason is that insurance contracts are often long-term contracts for decades or even life, and the interest rate paid to the insured is fixed and floating. At the same time, the return on investment is fluctuating and uncertain. For the banking industry, under normal circumstances, no matter how the interest rate fluctuates, the spread will generally be positive. For insurance companies, there may be spread loss every year, especially for fixed-rate policies with high guaranteed interest rates, which will cause long-term spread loss and become loss-making policies. Therefore, when measuring the spread income of insurance companies, we should consider the long-term policy interest cost and long-term investment yield during the insurance liability period. Just like the life insurance industry in China in 1990s, when the one-year deposit interest rate of the central bank dropped from 10.98% in July, 1993 to 2.25% in 1999, life insurance companies underwritten a large number of policies with a predetermined interest rate exceeding 6%. 1When the long-term deposit interest rate was above 8% before 1997, the return on investment of insurance companies exceeded 10%. However, with the downward adjustment of interest rates, the return on investment of insurance companies has fallen sharply, and the interest rate paid to policyholders is still the predetermined interest rate of more than 6%. Looking back, these policies have become loss policies with long-term spread losses. The root of the problem lies in the fact that China Life Insurance Company, which is in its initial stage, lacks reasonable judgment on the long-term return on investment in the era of high interest rates, and has made a policy commitment to bear interest rates above 6% for decades. With 1999, the China Insurance Regulatory Commission issued the highest scheduled interest rate of 2.5%, and the new policy after 1999 basically eliminated the spread loss. However, with the intensification of competition among insurance companies, especially in the future era of high interest rates, if the regulatory authorities relax or substantially increase the maximum predetermined interest rate, some insurance companies may still have a large number of loss policies with spread losses out of the pursuit of short-term interests. This consequence is very serious. If it appears in the growth period of the insurance industry, it will directly lead to the bankruptcy of insurance companies.

2) Expense difference: that is, the difference between the pricing expense rate estimated by the insurance company at the time of policy pricing and the actual expense rate in the company's operation on this basis.

3) Unexpected difference (death difference): For life insurance, it is mainly reflected in the difference between the expected mortality rate, the incidence of accidents and major diseases, and the pricing expense rate that reserves a certain profit on this basis, as well as the compensation expenses generated by the actual mortality rate, accidents and major diseases in the future. For property insurance companies, it is mainly reflected in the difference between the pricing based on the estimated accident rate and the actual compensation in the future. This risk of property insurance companies is relatively high. Future disasters, especially natural disasters, have great uncertainty, the occurrence period is uncertain, and the insurance liability period is not as long as several decades as the life insurance industry, so the prediction based on historical experience will be very different from the actual occurrence rate of the insurance liability period of the actual company.

4) Refund of premium difference: For life insurance companies, the insured generally has the right to surrender, and the insurance company will refund the fee to the insured according to the cash value of the policy. However, for the insured, surrender is not cost-effective, especially in the years before payment, because the premium insurance company in the early stage accounts for a higher proportion of expenses, and the surrender amount is generally lower than the reserved value of the policy, so the insurance company no longer bears risks. For insurance companies, surrender itself is profitable. Of course, no insurance company is willing to earn this part of profits, but surrender exists objectively and always occupies a certain proportion, so it is also the source of profits for life insurance companies.

There are two main profit models of insurance companies, one is underwriting profit and the other is investment income.

Underwriting profit:

Underwriting profit mainly comes from the fact that insurance companies should calculate the future operating costs on the actuarial basis when setting the rates, and then add a certain profit to the operating costs as the final price to ensure the profitability of underwriting business. However, this is uncertain. If the compensation in that year is lower than expected, the profit will be more. If snowstorm, typhoon and other big risks occur in that year, and the compensation situation exceeds expectations, then the underwriting profit will be reduced or even lost.

Investment income:

Investment income mainly comes from the insurance company will underwrite the premium, namely cash flow as insurance investment funds, through equity investment,

Mergers and acquisitions, financial investment and other ways have also brought rich profits to the company. If the underwriting business is profitable, the company's profit is underwriting profit plus investment profit. If the underwriting business is losing money, it will be compensated by the investment profit, and the excess profit is the company's operating profit.

Ask experts to introduce the profit model of insurance companies. Thank you for your simple sentence.

The customer's money is paid into the company, and the company shares the investment income of this money while providing guarantee.

It's just that a good company always has a surplus, and a poor company will raise money if it loses money.

What is the profit model of PICC China and other insurance companies? The profit model of property insurance companies is underwriting+investment.

Underwriting profit, in common parlance, is to charge a premium of 100 yuan, excluding compensation and various expenses, and the rest of the money underwrites profit;

Investment income is to invest with the collected insurance premium to generate income.

In most insurance companies, the investment profit is far greater than the underwriting profit. There are many reasons. With more and more insurance objects in the market and more and more fierce competition, insurance companies are almost unprofitable in underwriting, and some even lose money. As for investment, it also depends on the year. In a good year, the overall investment is improving and the profit is acceptable.

360 company profit model China team is not qualified to play in the World Cup.

What are the main profit models of insurance institutions?

1. Earning commission: the premium enters the insurance company, and the commission is returned to the insurance agency. After being paid to the agent, the net profit of the insurance agency is after excluding office and manpower costs. Usually it is very low, and many insurance agencies are struggling.

2. Make a platform: Make a purchasing platform similar to a supermarket to help customers make choices. This is good for both customers and insurance companies. You can choose the X product of A, the Y product of B and the Z product of C for combination. It needs a large scale and a good chain platform.

3. Profits from the capital market: After the successful listing of chain insurance institutions, they will get corresponding capital profits in the capital market. Just like the listing of domestic GEM companies.

The overall operation is very difficult, and most of them are struggling. Insurance companies are still not easy to operate (it usually takes 8 years to make money), let alone insurance agencies!

Personally, Meitu's profit model may be called "revenue" instead of "profit". At present, these softwares are not the profit points of the company. In addition to pop-up advertisements, there should also be related software recommendations, and rely on its strong user base to understand user habits, and then develop products according to the data. For example, Meitu mobile phone has been released to the second generation of Meitu mobile phone, which should be its subsequent profit point. I hope it helps you.

What is the profit model of immigration companies? Do it if you have a project. If there is no project, act as an agent. 100% This industry is despised.

What is the profit model of the courier company? Many pieces are shipped together, with great benefits and low cost. For example, 10 products, each price 10 yuan. If your transportation cost is ***50 yuan, you will make a profit of 50%.

Haier's profit model, KPI- Key Process Indication, is an objective quantitative management index to measure the process performance by setting, sampling, calculating and analyzing the key parameters of the input and output of a process within an organization. It is a tool to decompose the strategic objectives of an enterprise into operable long-term objectives, and it is the basis of the enterprise performance management system. KPI can make the department head clear about the main responsibilities of the department, and on this basis, make clear the performance measurement indicators of the department personnel. Establishing a clear and feasible KPI system is the key to do a good job in performance management. First, the establishment of KPI system first defines the strategic objectives of the enterprise, and uses brainstorming and fishbone analysis at the regular meeting of the enterprise to find out the business focus of the enterprise. These business priorities are the key result areas of the enterprise, that is, these business priorities are the criteria for evaluating the value of the enterprise. After the business priorities are determined, the key performance indicators (KPIs) of these key achievement areas are found through brainstorming and designated as enterprise-level KPIs. Then, each system supervisor decomposes the KPI of the corresponding system, determines the related factor objectives, analyzes the performance drivers (technology, organization and people), determines the workflow to achieve the objectives, decomposes the KPI of each system department, and determines the evaluation index system. Then, each system supervisor and department KPI staff further subdivide KPI into more detailed post KPI and performance appraisal indicators, which are the elements and basis of employee appraisal. At the same time, the process of establishing and evaluating KPI system itself is the process of unifying all employees' efforts to the strategic goals of the enterprise, which will certainly play a great role in promoting the performance management of managers in various departments.