The Development Model Of China's Life Insurance Industry Is Discussed

Since the reestablishment of life insurance industry in 1980抯, the industry has made rapid progress, especially in the last decade. The market size is increasing, consumers?awareness is improving, and insurance regulations are strengthened and rationalized. However ,domestic insurance industry is facing many problems as well. Due to those problems, insurance operating entities make wrong strategic decisions, which hinder the further development of life insurance industry, establishment and improvement of an insurance market mechanism, and weaken life insurance抯 role in national economy. The day for China to enter WTO is approaching. After that, foreign insurance companies will have the freedom of choosing partners. In five years there will be no limitations in geography areas for them to run business, and they can handle all kinds of insurance business, including group insurance, health insurance and annuity insurance. We only have five years to transit from fostering and improving domestic insurance market to complete opening up and facing international competition. In this situation, we have to face the realities and think deeply about the future of domestic life insurance industry. The purpose of this dissertation is to seek reference and inspirations through analyzing conditions and factors that benefit life insurance industry in developed countries, then focus on the development and current situations of domestic life insurance industry, identify exiting problems and underlying reasons, thus arrive at a model that adapts to characteristics of a industry in transition, and search new ways of thinking for further development of domestic life insurance industry. The dissertation consists of a preface and three parts. The preface is a brief analysis of current situation and trends of domestic life insurance industry and to show the critical importance of discussing a model of development for the industry. In the first part, from the perspective of beginning and development of life insurance, the 3 dissertation summarizes regular stages for life insurance development, and clarity that a developed life insurance industry plays a crucial role in a country抯 social and economic welfare. In this part, first the dissertation briefly discusses several basic concepts, including the meaning of life insurance, and states that life insurance business is the object of this research. Next it introduces the background for the beginning of life insurance, the development of life insurance industry in typical counties, and identifies regular rules of that development. In the end ,it analyzes the critical role of life insurance industry in national economy from both macro and micro perspectives. In the second part, on the basis of an analysis of current domestic life insurance industry, the dissertation identifies existing problems that hinder the development of domestic life insurance industry and weaken its competitiveness in the international market. In this part, first the dissertation briefly describes current situation of the industry, and points out that current insurance market and insurance industry is not adequately developed through an analysis of relevant data including premium income, insurance density and market penetration. Then the dissertation gives a detail analysis regarding the supply and demand side of life insurance, market intermediaries and market regulations, thus identifies...