Multi-factor Analysis Of Demand For Life Insurance On The Basis Of Open Economies

The paper attempts to analyze, through theoretical modeling studies, how individual risk aversion and macroeconomic conditions impact the consumers'purchase for life insurance on the open economies, and how the individual maximize the effects of expected when the level of risk aversion and some economic variables, as well as inflation, changed in the situation. Based on the forward studies, this paper investigates empirically how to promote the healthy development of the life insurance in China.By comparing and distinguishing the related conceptions, the paper considers that the term"life insurance"is a broad concept in China and a important party of the consumer'function ,so we can utilize the theory related to the maximization of the beneficiaries'expected lifetime utility to analyze issues of demand of life insurance in China. Therefore, the paper first investigates the present situation of life insurance of world, and puts the focus on the discussion of the evolution and its tendency of the life insurance structure in China in the past two decades. Seeing form a view in the world by comparison with the history of life insurance in other countries, the developments of life insurance will evolve to more competitive and a more orderly market, extensive coverage, richer products, excellent staff and harmonious development of the variety industries in the future.Base on the theory of the maximization of the beneficiaries'expected lifetime utility, this paper investigates how the individual choose to purchase an insurance on the open economies when the individual risk aversion and some macro level, as well as inflation, changes. Theoretical analysis concludes that the enthusiasm of life insurance consumption increases with the individual's probability of death and the degree of risk aversion. Base on this theme, this paper proposed to strengthen insurance universal education to improve the individual's risk awareness, thus contributing to the purchase of life insurance.This paper finally analyzes the primary factors on the open economies that influence the development of Chinese life insurance, and finds out that the continuous macro-economic development and economic restructuring in China is the driving force of the development of life insurance, and the three factors on the open economies, such as indemnity, social security policies, and the number of the life insurance enterprises...