| The study analyzes the current situation of the Macau Non-Life insurance industry. It concludes that the industry is facing four major problems, which are the overall decline for the insurance products, intense competitions with a detrimental effect on the incumbent firms, existence of adverse selection and moral hazard behavior, and ineffective management of the insurance companies in Macau. Through the analysis of the underlying causes for these problems and their potential impact, I try to come up with the following solutions in order to sustain the long-term development of the industry: (1) developing comprehensive insurance policies to strengthen the demand for insurance products, (2) strengthening the supervision on the solvency margin of insurance company, (3) minimizing the adverse selection and moral hazard effect, (4) modernizing the management of the insurance companies. |
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