Positive Analysis On The Transaction Cost To The Life Insurance Demand

As the most important financial factor, insurance is assuming the an increasingly position as well as bank and security.In recent years, China insurance accelerates its development. Since the 16th National People's Congress, the total insurance premiums continued to maintain a vigorous growth momentium, keeping 18.2% growth rate, and 2.3 times the 2002 figure. China insurance premium ranks the 9th palce in the world, 4.5 times the 2002 figure, moving up one rank a year on average. In 2007, the number of market participants has grown to 110. many insurance groups, 68 more than the 2002, 9 asset management companies and 2331 professional insurance agency.Life insurance is developing more faster than non-life insurance. Life insuracne company has realised more premium than the other. In 2007, life insurance company realised RMB 4494.89 billion in premium, rising 22.16% as compared with the end of 2006. going along with the finacial increasement, new features appers in life insurance demands. Traditional life insurance and bonus insurance lost market, in contrast, variable life insurance are well accepted by more people(increase rate was up to 558.37% and 113.44% in 2007). Life insurance is playing a great role in society development, has an impact on finacial even society market security.This article is from the microview, using trasaction cost theory to discuss the life insurance demand. Through the conparative analysis, this article has some quite remarkable conclusion. Firstly, the high transaction cost has severly influenced the life insurance transaction. Secondly, the insucance agency can greatly decrease this cost, made the transaction easy. A great number of successful foreign agency example proves thispoint. However, the insurance angency has various troublesome influencing the transaction itself. At last,this article give some suggestion to the present life insurance agency transaction problem.