Core Insights - The insurance industry is experiencing a significant reduction in executive numbers, with the average number of executives per company dropping from 11.2 in 2020 to 7.8 in 2025, a decrease of approximately 30% [1][2][5] - Smaller insurance companies are leading this trend, with some maintaining core teams of only three executives, reflecting a shift from "scale expansion" to "quality competition" driven by regulatory pressures, cost constraints, and technological advancements [2][3][5] Executive Reduction Trends - The demand for executive positions has decreased by 60% since 2020, indicating a shift in the hiring landscape within the insurance sector [2] - Among the 176 insurance companies, the average number of executives is now at its lowest in a decade, with life insurance companies averaging 7.8 executives and property insurance companies at 7.6, both down over 25% from five years ago [2][5] - Over 15% of small insurance companies have core management teams of fewer than four people, with some companies like BYD Property Insurance and Huahui Life retaining only three executives [2][3] Cost Management and Efficiency - The comprehensive expense ratio for BYD Property Insurance was reported at 6.11%, significantly lower than the industry average of 18.5%, highlighting the financial pressures faced by smaller firms [3] - Major insurance companies are also reducing executive numbers; for instance, Ping An Life cut its executive team from seven to five, saving approximately 800,000 yuan in annual salary costs, which is 12% of the company's net profit [3][7] - The average salary for executives in the industry exceeds 25% of total labor costs, with top executives earning between 5 million to 8 million yuan annually [6] Regulatory and Technological Influences - The implementation of the C-ROSS regulatory framework has necessitated clearer accountability for executive roles, leading to a reduction in redundant management layers [5][6] - Companies are increasingly adopting technology to streamline operations, with AI systems replacing traditional management roles, thus reducing the need for multiple layers of approval [7][12] New Operational Models - Smaller insurance companies are exploring new operational models, such as outsourcing non-core functions while maintaining a lean core team, exemplified by BYD Property Insurance's approach [9][10] - The "shared executive" model is being piloted among small insurers to reduce costs and improve governance, allowing multiple companies to share a CFO or other key roles [11] - Digital management platforms are being utilized to automate processes, significantly reducing the number of required executives while enhancing decision-making efficiency [12] Industry Evolution - The insurance sector is transitioning from a focus on executive quantity to a focus on value creation and operational efficiency, with a growing emphasis on technology and streamlined processes [17] - The future survival strategy for smaller insurers may involve specialization and efficiency rather than expansion, leveraging technology to enhance operational capabilities [17]