A Study On The Relations And Development Of China’s Regional Insurance Industry

China’s insurance industry has made great progress in the last35years. Its capacity to promote economic and social development has steadily improved. However, due to issues related to economic foundation, resource endowments and industrial regulation, the industry has shown irrational competition, insufficient promotion, as well as uneven development between different regions. Based on this, this dissertation focused on the relations and development of China’s insurance industry, analyzed the current situation of industrial development, clarified the relations of regional insurance, and then put forward some suggestions to the sustainable development of China’s regional insurance industry by mobilizing multiple social subjects, such as insurance companies, insurance industry association, society, and government regulation.This dissertation focused on the relations and development of insurance industry and utilized methods of both empirical analysis and normative research. The study was based on extensive literature review on business insurance theory, industrial development theory, coordinated regional economic development theory, and the theory of public management and governance. The structure of this dissertation is as follows:Part I (chapter1,2,3) constructed the logical framework. This part specified the content of relational insurance industry, which includes the development gap among regional insurance, the competitive relationship in regional insurance market, and the interaction between regional insurance market and regional economic development. In accordance with regional insurance relations, this part also specified the meaning of regional insurance development and clarified the basic principles of regional insurance development.Part II (chapter4,5,6) discussed the current situation of China’s regional insurance industry. By conducting quantitative analysis on the regional development gap between four major areas, the dissertation pointed out that the main reasons of the big development gap are the different levels of economic development states among areas, the unbalanced social development states, the unbalanced insurance supply, and some ineffective insurance regulatory policies. At the same time, this dissertation analyzed the trend of the gap by using Klassen classification, based on the data from after financial crisis in2007. Secondly, this part analyzed the life insurance market and non-life insurance market in different areas by applying SCP model, and then pointed out the problems in China’s insurance market organization. Finally, this part investigated the correlation between regional insurance development and regional economic development. Results showed weak influence of regional insurance industrial development to the economic development.Part III (chapter7) analyzed the current situations and industrial development policies in major countries and areas worldwide, and summarized the valuable experience.Part IV (chapter8,9) utilized the social governance theory to investigate the path for regional insurance industry development from perspectives of insurance companies, insurance industry organizations, the public and the news media, as well as government regulation. Some reform ideas for regulation of insurance industry were provided.This dissertation can be concluded as follows:Firstly, the development gap between regional insurance industry is decreasing, but there is still room for improvement. Secondly, the market concentration rate of insurance industry is high, which can be explained by the fierce competition and homogeneity of products. This results in issues like frequent illegal activities, poor market performance, and the fact that the majority of SMEs face difficulties in their business operations. Thirdly, the overall regional insurance market and regional economy are in the state of low maladjustment. The regional insurance’s function in promoting regional economic and social development is insufficient. Finally, the development of regional insurance industry needs the participation of multiple social subjects including insurance agencies, insurance industry organizations, the public and the government.