Analysis Of Market Structure And Performance About China Insurance Industry

Along with the quikly opening advancement of China insurance business, the insurance business development was rapid in recent years, held the important status in our country financial industry.China has joined WTO since 2001 in particular, the main body of insurance market increases unceasingly, the insurance premium income creates new peak repeatedly.Although the PICC company ,the Chinese life insurance company, China Ping An company and the Chinese Pacific Insurance company's market share drops unceasingly and the foreign capital insurance company and the small insurance company's market share increases unceasingly, but generally speaking, China insurances market concentration degree is still high, the market presents the obvious monopoly characteristic.According to the industrial economics market structure– performance theory, the high market concentration degree corresponds the high market achievements inevitably.Therefore,it is important for our country insurance market to research the relations between structure and performance at present.This paper has combed the market structure theory and has carried on the narration to the correlation literature.The article establishes the panel data model to reflect the relations of market structure and the market performance in china insurance market. The real diagnosis result indicated that the Tradition Collusion Hypothesis and the Efficient Structure hypothesis were unexistable.The property profit margin or the insurance premium profit margin all drop with the drop of concentration degree year by year. Because the insurance market structure was the result of the government impels to form monopolizes or the nature which by the property right arrangement decision.It was not the result of technical superiority or the market strategy.In the real diagnosis research foundation, this article further proposed how to enhance the insurance market performance. It is thought that the government should relax the the barrier to enter and encourage the foreign capital and privately insurance company to establish. The government should raise certain multiplex management large-scale insurance group or the financial group, should create good fund condition and the external environment and imply the steady insurance business supervising and managing policy.