Analysis of Financial Demand of Insurance Companies

With the sustained and rapid economic development in China, the demand for insurance is growing, which has laid a foundation for the development of the insurance industry. With the continuous expansion of insurance companies and the introduction of various innovative businesses, the defects of traditional decentralized financial management with grass-roots institutions as the main body are becoming more and more prominent, such as inefficient use of funds, insufficient transparency and timeliness of financial information, and inconsistent accounting systems and policies of various financial entities. The rapid development and application of information technology has had a great impact on the production activities and management methods of enterprises, and provided information support for centralized financial management. Centralized financial management integrates all financial links that can be standardized, unified and specialized as much as possible to ensure the consistency of the overall strategic objectives of the enterprise and the unity of information flow, capital flow and document flow, so as to strengthen internal management, prevent financial risks, improve the efficiency of capital use and promote the steady development of the company. Centralized financial management has become the financial management mode of insurance enterprises.

There are generally two forms of centralized financial management of insurance enterprises, namely, headquarters centralized and provincial centralized. Taking PICC P&C insurance as an example, this paper systematically analyzes the present situation of provincial centralized financial management, summarizes the achievements and existing problems of provincial centralized financial management, analyzes the causes of the problems, and puts forward the solutions.

The implementation of centralized financial management can also strengthen the overall budget and cost control within insurance companies and improve the financial management control ability of enterprises.

First of all, insurance companies should expand financial management information systems, focusing on integrating all kinds of information management systems of insurance companies into financial information systems, and strengthening the integration and sharing of all information resources related to financial work within insurance companies.

Secondly, in the construction of financial information system, security management should be strengthened to avoid financial risks caused by loopholes in financial information system, especially in the construction of financial information system, security protection technologies such as digital signature, access control and security certificate should be actively adopted to build a multi-level security control system within financial information system. Third, expand the functional module design of financial information system, and the requirements of centralized financial management for financial information system are more comprehensive and complex. Therefore, in the setting of financial information system, we should further expand the setting of functional modules, including insurance core business management, claims management, salary tax management, budget management, contract insurance management, examination and approval control, problem base, message center, etc., so as to truly realize centralized financial management relying on financial information system.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.