Analysis of Insurance Industry's Business Strategy Management: Taking China Life Insurance as an Example

Abstract

The global insurance industry is undergoing profound transformation driven by digital disruption, evolving consumer preferences, and economic volatility. In this context, China Life Insurance Company faces unpredictable challenges in maintaining its market dominance and profitability as a state-owned industry. This paper conducts a concrete case study to analyze the operational strategy management of China Life. By examining its financial performance from 2022 to 2024 and its drastic stock price change, the study identifies three core strategic challenges: the problem of profitability caused by the flaws in the cost structure, the fluctuations in earnings resulting from excessive reliance on investment returns and the operational rigidity that hinders development. Subsequently, the paper proposes targeted countermeasures including precise cost restructuring, a reoriented investment strategy focused on asset-liability matching, and acceleration of digital transformation. The findings of this analysis reveal a critical disconnect between the company's revenue growth and its bottom-line performance. It also provides a crucial reference for China Life's strategic reform and offers valuable insights for traditional financial institutions navigating similar challenges in the digital era.