Study On The Path-Influencing Factors-Performance Of The Development Of Insurance Industry

The development of the Chinese insurance industry can be compartmentalizedinto three phases: first, from its coming into being to the establishment of a new China;second, from the establishment to redevelopment of the Chinese insurance industry;third, from 1980 to now. The development of the Chinese insurance industry indicatesa special path-dependence. The tempo is rapid relative to other countries as itincreases 30% annually.The intention of the dissertation is to offer theory guidance by studying thedeveloping path that is influencing the factors-performance of the Chinese insuranceindustry.The dissertation concludes that the development of the insurance industry is dueto all factors of the whole society-economy-culture system. The most importantfactors are the nation, market system and ideology. The nation will decide the level ofcontraction or expansion of the insurance industry to maximize its utility. The marketsystem is an indispensable factor in this matter. The degree of development in themarket economy is the most important economic factor to be considered and will havea direct correlation to the insurance industry. Different ideologies will have differentdegrees of influence on this industry and traditional Chinese ideology impedesdevelopment.The functions of the Chinese insurance industry have been expanded since 1980,and it guarantees the social reproduction and safer living conditions for the people.The output of the insurance industry will contribute to the general economy.Compared to developed countries of the world the Chinese insurance industry isstill in its infancy. The most important thing for the Chinese insurance industry is totake the advantage of the favorable economic and social conditions and increasedevelopment.Generally, the overall performance of the insurance industry has been below thestandards of more developed countries and this is especially true of state ownedinsurance companies. This reduces the competitiveness of the Chinese insuranceindustry in light of new WTO rules and regulations.In conclusion the writer will present a summary of the problems facing theinsurance industry in China and will make suggestions for improvement.