Study On Relationship Of Insurance Supply And Insurance Demand

Is there causality between the insurance supply and demand of China? This text use Granger and Sims causality examine law find there is no causality between insurance supply and insurance demand of China. However, no causality does not represent they can not influence each other.At research approach, the literary adopt controlling variables method, particularly, while studying the impact the insurance demand on the supply of the insurance , we control the main variables influencing the insurance demand, including GDP, market economic system reform (life insurance), the area (non-life insurance) causing disaster, undergraduate number course of graduate (non-life insurance), insurance number of staff as reflecting the index of the insurance total amount, surrender rate (the life insurance ) and absolute concentration degree of market (not life insurances ) as reflecting the insurance is supplied with the index of quality to analyse the impact on demand of the insurance of the supply of the insurance; While studying the impact insurance supply on the demand, we control GDP , the absolute concentration degree of market, the legal factor of the insurance, bank deposit interest rate (life insurance), and introducing premium incomes as the index of reflecting the insurance demand to study the demand of the insurance impacting on supply of the insuranceThe empirical results of supply of the insurance impacting on the demand of the insurance are following: first, the elasticity of life insurance demand is greater. It will take in change 1%, life insurance demand change probably 1.93%, showing the level of economic growth affect insurance greatly; second, two index of insurance supply about amount and quality are significant for insurance demand, but coefficient is little.The empirical results of demand of the insurance impacting on the supply of the insurance are following: not only in non-life insurance market but also in life insurance market, insurance demand is significant for insurance supply. the demand of life insurance market each increase 1%, can drive life insurance supply change 1.5% probably; non life insurance market is lower than this level slightly, probably 1.06%.Obviously, on the one hand, from the view of macro-economics, the development of Chinese insurance field relies on the development of economy. On the other hand, from the view of the both sides of insurance supply and demand, insurance demand is more significant, insurance demand take the role of dominant, Chinese insurance market is demand-oriented.Through analysis, we find that insurance demand and insurance supply interacts, but both do not always harmoniously develop equilibrium. The development of Chinese insurance market is non equilibrium, specific expression is, the development of underwriter main part fall behind the development of customer's main part; underwriter do not growth balance. To change the present situation of Chinese insurance supply amount excess and insufficient available supply, we need insurance supply innovation to meet market demand, specific measure including, increasing the insurance company's fair contract and development of insurance supply amount and new product.