In the first half of this year, the "top three" property insurance companies in China (PICC Property&Casualty Insurance, Ping An Property&Casualty Insurance, and Taiping Property&Casualty Insurance) achieved a total premium income of 607.9 billion yuan, accounting for 63% of the market share. The comprehensive cost ratio generally improved, all of which were above 95%, achieving underwriting profits. Overall, top insurance companies rely on their deep resource accumulation, mature operational systems, and risk resistance capabilities to effectively control costs and achieve steady business growth. In the stage of transformation and upgrading of the insurance market, and the industry entering high-quality development, the development model of relying solely on scale expansion for short-term growth is no longer sustainable. The key for enterprises to seek development lies in consolidating internal capabilities, focusing on refined management and specialized operations, and truly achieving a transition from quantitative growth to qualitative improvement. The progress of the property and casualty insurance industry towards high-quality development is mainly driven by three types of forces. One is the external constraint force derived from regulatory guidance. The "traffic rules" set by regulatory authorities are conducive to correcting the short-term profit seeking bias in the market and pointing out the long-term development direction for the industry. In recent years, regulatory authorities have been continuously strengthening the "reporting and operation integration" supervision in the field of auto insurance, promoting the transparency and authenticity of enterprise handling fees, breaking the past disorderly competition with the help of the "tangible hand", providing effective external constraints for reducing channel management costs, improving operational efficiency, and optimizing channel structure, demonstrating the determination to standardize market behavior and promote industry cost reduction and efficiency improvement. The second is the "breakthrough" innovation power derived from the transformation of digital intelligence technology. Through the collaborative application of data elements and intelligent algorithms, the property insurance industry can achieve agile response and efficiency improvement throughout the entire business service process, and may also open up new value creation models. For example, real-time collection of vehicle driving data through the Internet of Vehicles, combined with external information such as road conditions and weather, can provide risk warnings and remind drivers to correct dangerous driving behaviors in a timely manner. This can not only reduce risks, but also achieve more accurate rescue and loss assessment. This innovative model of "pre prevention+disaster rescue+post loss compensation" helps the role of insurance as a post compensator to transform into a pre risk manager, expanding the connotation and boundaries of the industry. The third is the intrinsic driving force derived from market competition. Upon closer examination, the competition among the "old three" is still fierce. Although emerging property and casualty insurance companies are still relatively small in scale, they have strengthened the competitiveness of the property and casualty insurance market through flexible operating mechanisms, innovative business models, and differentiated competitive strategies. The effective pressure of competition forces business entities to improve operational efficiency, strictly control comprehensive cost rates, and enhance their own operational efficiency and innovation capabilities by promoting intelligent risk control, intelligent nuclear factoring and compensation processes. By improving customer service networks and implementing the "insurance+service" model, the industry can shift from extensive price competition to refined and differentiated service competition. The comprehensive effect of the three forces is driving the property insurance industry towards a new stage characterized by refined management, data-driven development, and ecological expansion, and also bringing about an increase in the industry's economic and functional value. However, further enhancing the risk prevention capability, breadth and depth of protection, and comprehensive strength of the property insurance industry still needs to be considered from multiple perspectives. From the perspective of regulatory effectiveness, the current measures to "break through internal competition" have achieved significant results, which cannot be achieved without the comprehensive and strict supervision of regulatory departments and the promotion of reform through fines. However, due to issues such as the rationality and authenticity of fees, it is difficult to accurately distinguish, resulting in the frequent occurrence of negative phenomena such as the compilation of false information and the false reporting of commission rewards. Next, in addition to further promoting the construction of a smart regulatory system and improving regulatory efficiency, it is also necessary to continue to promote the construction of an industry self-discipline system, forming a multi-party collaborative governance pattern of "regulation institution market". From the perspective of technological upgrading, digital intelligence technology is currently the most promising tool for insurance companies to improve total factor productivity. However, its initial investment is high and data barriers are high. Top insurance companies have a first mover advantage and can leverage their rich data foundation and investment capabilities to build sustainable advantages in risk control, customer service, and operational efficiency, winning by quality. However, this may also lead to a market pattern where the strong remain strong. In the future, it is necessary to accelerate the improvement of standardized and secure data sharing and technology collaboration mechanisms, guide the opening of computing power, models, and infrastructure resources to business entities in a reasonable manner, and promote orderly competition and innovative development of different types of enterprises. From the perspective of risk management capabilities, it is necessary to further break through the limitations of traditional actuarial frameworks and risk awareness, strengthen ecological cooperation with technology companies and data service providers, build dynamic risk databases, continuously improve risk identification, quantification, warning, and reduction capabilities, and better serve the overall economic and social development while promoting healthier and more sustainable industry development. Author: Suo Lingyan (Vice Dean and Professor of the School of Economics, Peking University)