An Empirical Analysis Of The Factor Influencing Demand Of Property Insurance

The insurance industry is part of the financial services sector, and has the same economic function which financial services have. But the insurance market accumulates fewer resources compared to the size of the bank credit market and the stock market. Therefore, the insurance market needs to be balanced development.The property insurance, as an important component of the insurance market, didn't develope perfectly from 1980. The reasons are as follows: inadequate insurance scale, insurance index such as insurance density and insurance depth have been a stable and downward trend, property business develops slower than life insurance business on the growth rate, and insurance structure is irrational. Moreover, the insurance industry faced difficulties that include that, insurance business contest the limit financial recources with banks and securities market, as well as foreign insurance companies deal with domestic affairs. These issues made scholars began to study the property insurance market.This paper chooses Jiangsu province as a specific object of study to analyse what factors determine the changes of property insurance and the extent to which these factors impact on the insurance needs. This paper is divided into six parts:Chapter 1 Introduction. This part explains mainly the background, meaning, domestic and international dynamic research status, research hypotheses, research content, research methods, research frame and possible innovation and shortage.Chapter 2 This part introduces the economic theory related to the demand for property insurance, including the definition and classification, economics explanation for property insurance needs, that involve the risk theory, demand levels theory, theory of purchasing behavior, and so on. These contents make the necessary theoretical preparations in order to further analyze the needs of property insurance in Jiangsu Province.Chapter 3 The chapter discusses the development and status quo of whole country and Jiangsu Province. Compared with foreign country and domestic provinces, the paper expatiates current problems facing whole country and Jiangsu Province' property insurance industry. This paper also discusses why choose property insurance market of Jiangsu Province as the specific region.Chapter 4 According to Jiangsu Province's circumstances, this part show that the individual factors includeing internal factors (including insurance awareness, income, investment on fixed assets, financial assets, etc.), and external factors (including economic development, insurance prices, the possibility of loss and market competition, etc.) affect respectively property insurance needs of Jiangsu Province.Chapter 5 Empirical analysis. This chapter establishs multiple linear regression model with lag variables, and estimatesand tests the results.Chapter 6 Basic conclusions and policy recommendations. Based on empirical findings of the study, this part puts forward a number of measures and recommendations to speed up the development of property insurance market.