Optimization Study Of China's Life Insurance Product Structure

1.BackgroundDuring the past 30 years, China's insurance business has made huge achievements after the gradual return of the domestic insurance business in China from 1980, which have attracted worldwide attention. Especially the life insurance industry, its proportion in total insurance business increased gradually from 0.2% to 67% nearby, and the share ranking of world's life insurance market rose to the sixth place from the tenth.However, while China's life insurance industry maintained a rapid developing and scale increasing, but it is a kind of extensive development model, because China's insurance industry is still in the early stages of development, such as insufficient effective demand, imbalance of the market supply and demand, the homogenization of life insurance products, irrational of life insurance product structure and so on.Although it was suggested that there are some recommendations and necessary analysis about the life insurance product structure problem, there is only a few optimization and analysis based on market demand analysis and a few complete systems analysis and optimization strategies response to the characteristics of the development of China's life insurance, as well as the special economic environment. Therefore, this article aims to analyze the demand factors of China's life insurance product structure, and applies the empirical analysis method to find the quantitative relationship between the major factors and the life insurance products structure. At last, this paper analyses the result of the model to explore the direction and strategy of optimization of China's life insurance product structure.2.The content of the article:This paper begins with the demand analysis and empirical analysis to identify the current problem of China's life insurance products structure, and give some constructive comments on structure optimization that meet the market demand based on the result of the model. In addition to the introduction, the article is divided into five parts.The first chapter introduces the development of China's life insurance product structure. Articles begin with the four stages of the China's life insurance industry's development, and the character of life insurance products in each period; Next, explains the traditional life insurance and Innovative life Insurance; and analyses features and trends of China's life insurance product structure to find the problems of life insurance product structure by using the data of 2000-2007.The chapter II discusses the life insurance product structure optimization theories. Firstly, put forward the concept of China's life insurance product structure according to the concept of industry product structure theory; and uses the theory of industrial product structure optimization to prove the importance and necessity of optimization of China's life insurance products structure. Secondly, make a comprehensive analysis of the major factors of market demand and impact mechanism which affect the product structure of China's life insurance, including the macro-economic factors, socio-cultural factors and micro factors.Chapter III makes the empirical analysis of demand factors of life insurance product structure. The paper chooses six factors the disposable income of urban residents, bank interest rates, inflation rates, high level education rates, the elderly dependency ratio and the Shanghai Composite index based on the theory mentioned before. And this chapter uses step by step empirical regression methods to identify the quantitative relationship between these factors and the various types of insurance demand of China's life insurance products structure, and finds out the problems and shortcomings of China's life insurance product structure in the current life insurance demand circumstances.Chapter IV gives some recommendations to optimize the product structure of China's life insurance. Firstly, the article analyzes influencing factors characteristics of China's life insurance product demand under the current economic context; Secondly, it proposes the optimization principle according to China's life insurance product market structure; And gives some constructive comments about the optimization direction of the structure of China's life insurance product based on the empirical analysis, and to stimulate effective demand from the perspective of macro-level and micro-level. Chapter V introduces the conclusions of this paper and future work prospects.3.The innovation and shortcomings of this article:The article uses qualitative and quantitative theoretical analysis, normative analysis and empirical analysis, and the main innovation of this article can be summarized as the following three aspects:(1)The topic this paper selected is the life insurance's hot problem and have been paid great attention but few researches about it have been done up to now, so this paper's systematic in-depth study fills the blank of the domestic life insurance industry.(2)Theoretical innovation, this paper introduces the knowledge of product structure in industrial economics, as well as supply and demand equilibrium theory as the basis for the demand analysis, these provides a strong theoretical basis when study the optimization of life insurance products structure.(3)Recommendations innovations are the ultimate significance of this article. The article proposes to stimulate effective demand based on market the interactive relationship between the supply and demand; to optimize the structure of life insurance products based on demand; to achieve the policy recommendations innovation.The main shortcomings of this article can be summarized in the following three aspects:(1)The limitations of theoretical knowledge; (2) As lack of enough data, it is also have some errors that cannot be ignored in the model; (3) there maybe have some subjective judgment in the process of choosing index of the model.