Insurance Market Integration In Europe: Policies, Effects And Revelation

The European insurance market is an important part in the process of integration. With 40 years effort, the European Single Insurance Market(SIM) has been set up, and improves welfare of European customers. The paper is focus on the SIM. By analyzing the framework and effect of the directives for insurance market, the paper will show the principles of regulatory policies, and provide some suggesting for the development of China insurance market.The paper will point out that the establishment of SIM aims to solve two conflicts: the development of insurance industry and limitation from market entry and regulations.The paper will classify the framework directives to two groups: policies for the liberalization of market entry and policies for the deregulation. These policy groups are solutions to conflicts.The liberalization of market entry broke the border of European nations and confront the European insurance undertakings with a wider market scale. Large undertakings start their European business to exploit economy of scale. The deregulation efforts try to coodinate the regulations among national supervision bodies. Those regulations were the obtacle to SIM.The paper will develop the typical analysis model, S-C-P model, and introduce regulatory environments as a new factor. The paper will use the new S-C-P model to analyze the effects of integration policies.The peper will gvie some conclusions on the policies and suggestions for China.