Study Of The Impact Of China's Insurance Industry Mergers And Acquisitions On Market Structure

Since the 1990s, with the growing competition in the world of finance and insurance industry, States Insurance Company have adopted the approach to mergers and acquisitions in order to cut costs, improve efficiency and enhance their market competitiveness. Domestic insurance companies also gradually use merger and reorganization, to enhance their strength and better participate in the competition in the domestic insurance market and even considerate through the way of mergers and acquisitions of foreign companies to achieve the purpose of overseas expansion. The mergers and acquisitions of insurance company will inevitably affect China's insurance market structure, which is the author's study purpose.In this paper, the main elements are as follows: Firstly, from the three barriers, market concentration, product differentiation and access, to reveal China's insurance market structure's status quo, this paper propose that the market structure of china's insurance industry exists a high degree of market concentration, but small-scale, the degree of product differentiation low, entry and exit barriers higher these problems and so on. Secondly, this paper from the three barriers, market concentration, product differentiation and access, to analyze the merger and acquisition of insurance industry's impact on the market structure, propose that China's insurance industry mergers and acquisitions can urge the insurance industry to raise the degree of market concentration and scale, improve the level of product differentiation, bypass the entry and exit barriers or restrictions to enter the insurance industry. Insurance industry mergers and acquisitions on the market structure of these effects can promote insurance market structure optimization, and through the merger case: the acquisition of Ping an Insurance Company to Fujian Asia Bank, to analyze China's insurance industry merger effect on the market structure. Finally, insurance industry's M&A is likely to bring some negative effects, so we must regulate mergers and acquisitions in the insurance industry, ensure that the insurance industry's mergers and acquisitions promote the insurance industry to rationalize the market structure development. Insurance industry's mergers and acquisitions mainly in the three areas: Firstly, strengthen the insurance company's M&A risk management; Secondly, we will improve the government and regulators of the insurance industry to regulate merger; Thirdly, regulate the insurance industry's own development.At present, the study on China's insurance industry mergers and acquisitions in the market structure is rarely. In this paper, the insurance industry's M&A is regarded a factor of impacting the insurance industry's market structure, this paper In-depth analyze some problems of China's insurance market structure, and systematically analyze the impact of the insurance industry's acquisition on market structure. Finally, regulate the insurance industry acquisition activities and offer some suggestions. These studies on the insurance industry's M&A make the insurance industry market structure optimization having a theoretical guide.