China's Insurance Sector Contribution To Economic Growth

Since 1980, the insurance industry of China has obtained tremendous development with economic growth in China. The step of insurance increase is faster than macroeconomic. During the recent years, the insurance premium increased as 25% in annual. The insurance depths and insurance destiny takes on gigantic growth. The insurance market rule and circumstance are better and better. So the effect of insurance industry on macroeconomic will be more important than before with the reform and development of economy in China.The study on the relationship between financial development and economic growth is familiar, which was focused on the financial development on economic growth from the perspective of functional finance. But there isn't any systematic analysis on the contribution of insurance to economy by far. In one hand, insurance industry has some uniform functions with finance, such as create value-added and collocate resource; but in another side, there are some special functions of insurance in economy, such as recouping loss, guarding against damage and controlling social risk. In particular, there are so many differences of total size or level between insurance and financial service in China because the development of insurance is just beginning and the contribution to macro-economy can't be testified by empirical method. So many scholar and researches chose another viewpoint to analysis the relationship between insurance and economy and the thesis of analyzing contribution of insurance to economic are seldom appearance.So this thesis depended on the services economy and correlation industry theory, using the statistic of services and input-output methods, roundly analyses the contribution of insurance in social reallocated and reproduce, employment, value-added and the correlation with other industries. Finally we want to obtain some practicable conclusion.