An Empirical Study On Insurance Demand Of China

After China joined the WTO in 2001, foreign insurance companies began to enter the Chinese market. Starting in 2006, China will remove any remaining barriers that prevent foreign insurance companies from competing in the Chinese market. Simultaneously, the rate of return from insurance premiums has been slowing,, the insurance penetration of China has not made striking progress, neither has the insurance density of China, the gap on insurance industry between China and the world is still large. All these show the problem of insufficient insurance demand in Chinese insurance market.This article empirically evaluates the quantitative relationship between the factors that determine demand for insurance and the resulting demand. The theoretical and practical interrelationship between demand and the factors that influence demand for insurance services is directly related to the efficient development of the Chinese insurance industry.This article uses macroeconomic theory, econometrics, multivariate regression analysis, classify analysis and time series method analysis to evaluate the relationship between demand for insurances and the factors that affect demand for insurance.The major content of this research includes:(1) developing a theoretical analysis on the factors that may affect the demand for insurance in China, to give the theoretical support to the quantitative analysis.(2) employing a method of classify analysis to classify Chinese life insurance market, and building a multivariable regression model of the demand for life insurance in the Chinese market, then further analyzes the demand for life insurance in China based on the model.(3) employing the method of classify analysis to classify Chinese non-life insurance market, and build a VEC model of demand for Chinese non-life insurance products, then evaluates the effect on the non-life insurance demand in both the long term and in a short term and the factors that affect the non-life insurance demand in China.(4) using the results of the above analysis, this article attempts to discover the obstacles that may affect changes in the demand for insurance products in the Chinese market, then provide some recommendations to increase demand for insurance products.Major conclusion: Chinese life insurance demand is affected by the GDP, individual income and the population structure, Chinese non-life insurance is affected by the GDP and investment in fixed assets both in the long run and in a short term.