Second, formulate reasonable budget performance targets. The following principles should be adhered to in setting the budget performance targets of all branches of life insurance companies. Strategic principle, that is, the performance objectives of each unit need to be consistent with the company's long-term development strategy at all times to prevent the problem of attaching importance to short-term benefits while ignoring long-term development. Market-oriented principle, that is, target setting needs to fully consider market changes, make targeted responses in time, deeply understand customer needs, provide services that meet customer expectations in an all-round way, and adapt to market environment changes to a certain extent. The principle of equal rights and responsibilities, what responsibilities each department needs to bear in the development of the company, and the corresponding goals need to be set. The principle of value creation, on the one hand, life insurance companies should also pursue profit maximization, on the other hand, they should also create social value as much as possible and create value for customers and employees. The principle of feasibility, each unit needs to proceed from the perspective of feasibility in the process of goal setting.
Third, adopt a scientific budget method. In terms of budget organization, the head office should set up a budget committee, including the manager of the finance department of the head office and the managers of subordinate departments, to coordinate budget management. Branches need to set up a budget preparation team, with accounting personnel in various departments as the core. According to the principle of top-down integration and horizontal coordination, the Head Office sets targets. On the basis of understanding the regional insurance market, different branches make plans according to the established objectives, carefully evaluate whether the plans are feasible, and prepare specific budgets according to the contents of the plans. Because the budget expenditure process will be inclined to key projects and new market development, it is necessary to do a good job of communication between superiors and subordinates, do a good job of ideological guidance between different units, prevent contradictions between units, and unite all departments to work together for the development of life insurance companies.
Fourth, pay attention to the supervision of budget implementation. It is necessary to establish and improve the performance evaluation system and performance dynamic assessment mechanism, in which the performance evaluation report needs to include the performance implementation status, the analysis of implementation differences and the countermeasures to narrow the differences. By submitting performance evaluation reports regularly, dynamic supervision can be realized, so as to ensure timely communication between executing agencies and employees at all levels, and enable managers to effectively supervise and control the implementation of objectives. For the budget deviation that has occurred, all units need to identify the influencing factors, respond in time, and minimize losses. In addition, life insurance companies should establish a budget executive committee system and a budget adjustment hearing system, with the executive committee as the company's internal adjudication organ, to investigate the problems of specific staff members, such as deviation from business policies, substandard progress and inadequate major measures, and impose penalties in strict accordance with the company's internal management regulations. For the budget adjustment problems that may occur in various departments, it is necessary to analyze the reasons and basis of adjustment in depth through the adjustment hearing in time, coordinate the feasibility of budget adjustment, and formulate adjustment plans.
To sum up, on the one hand, the financial budget management of life insurance companies can reflect the financial situation and operating results in a certain stage in the future, on the other hand, it can also avoid the occurrence of financial risks. While standardizing the system, life insurance companies need to strengthen financial budget preparation and budget variance analysis, and really implement financial budget management, so as to promote the development and growth of life insurance companies.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.