China's Insurance Industry Market Structure And Performance

Although our insurance industry have a short history, it has made a great progress after reinstating the domestic insurance business in 1980.Today the insurance industry is playing a very important role in developing domestic economy and stabilizing our country. It is essential to our market economy system can operate really. But the shortcoming and low operation efficiency existing in China insurance industry has not being suit to the development of domestic economy and the intensive competition resulting form the internal insurance and foreign insurance companies which will enter the China insurance market in the future. So in this paper, from the special point we select a lot of data and use the theoretical instrument of industry organization theory to study the between the insurance market structure and performance by demonstrational and the theoretical means. There are macroscopic demonstrational studies of market structure and macrocosmic measure of insurance companies performance in Chinese insurance industry. At last we demonstrate the relationship between the insurance market structure and performance and analyses empirically whether the "Efficient Structure Hypothesis" and "S-C-P Hypothesis" are suit to our insurance market. According to the outcome we find they are not all existence in our insurance market. At the same time it is indicated that our insurance industry is still in the stage which the insurance companies decrease the market share by expanding their operation scale continually. The analysis have made known the operation cost and efficiency is the important factors influencing our insurance industry performance. At the end of this paper, we give some suggestions to perfect our insurance market and improve the insurance market performance. I hope my sturdy can offer some reference and theoretical accumulations for studying insurance industry theory and making the policies.