The Analysis Of Life Insurance Consumption Behavior In China

Since China's insurance industry was formally resumed, especially in recent years, it developed rapidly, but still far from the world average level. In fact, nowadays the development of China's life insurance is unbalanced. On one hand the supply part dominates the market and the supply market is well developed. On the other hand, the consumption of life insurance is insufficient and the demand market is not well developed. To understand barriers for real demand and consumers'real behavior would be the keys to the healthy development of China's insurance industry.Previous studies of consumer behavior of insurance mostly based on macro data to empirical analysis the insurance needs of our country, few of them analysis the micro individual insurance consumption behavior, and even if, they under traditional economics and is built on the framework of expected utility maximization analysis. Under the theory of expected utility maximization, consumers should purchase insurance effectively, maximize their own utility But the in fact, because of the special causes of China's life insurance consumer market, there are many non-rational behavior of the consumer market in life insurance, people's life insurance consumption behavior is limited rational.Using the traditional economic theory and the general buying behavior factors to analyze such irrational behavior is very difficult. To a large extent, life insurance consumption behavior also influenced by people's psychological factors. Therefore, this paper based on analyzing the particularity of life insurance consumption and the market performance of rational consumer behavior in life insurance consumption, we explained some non-rational behavior by behavioral economics, heuristic bias, prospect theory, mental accounting and other theories. And then proposing a solution and recommendations to lead right life insurance consumption behavior of our country.This paper is divided into five chapters. The first chapter presents the research background, significance and research methods. The second chapter carried out a retrospect on the study of insurance consumer behavior, and pointed out defects in this field. The third chapter discusses the special causes of life insurance consumer behavior and market performance in depth. ChapterⅣapplies the principle of behavioral economics to explain consumer behavior problems in life insurance in-depth analysis and show that life insurance consumer behavior is complex orientation that under the influence of psychological characteristics. ChapterV is based on the previous paper and for the interpretation of consumer behavior used of behavioral economics to put forward a proposal and policy recommendations in order to guide right consumption behavior of the life insurance. The insurance company should be a rational guide, accelerate product innovation, strengthening the integrity of the building of the marketing concept; government should conduct policy support, develop the market; consumers should enhance risk awareness and establish a correct concept of consumption, be a rational consumer, and let the insurance products play its real function..