Research On The Institutional Change And Market Efficiency Of Bancassurance In Our Country

Bancassurance has been developing rapidly in the past more than 10 years since it was introduced into China at later 90s in 20th century and has made considerable progress during this period. However, besides its achievements, there are also so many problems such as product's homogeneity, low-level of competition means and developing models and so on. The core essence of bancassurance is that we need to study these issues correctly and make a thorough understanding of the low of its development. This article uses the theory of systematic transformation to analyze the emergence, development and the existing problems and causes of bancassurance through the methods of normative analysis, empirical analysis, quantitative analysis and qualitative analysis. By using the"supply-demand"and"cost-benefit"theory, this article analyses the relationships between the institutional supply and demand of bancassurance, makes a detailed description of the actions and equilibrium of the main parts of the market, and also raises a concept that bancassurance is a series of institutional arrangements produced by the banks and insurance companies. By applying the institutional change theory, this article explains the internal mechanism, the path selection and path dependence phenomenon during the development of bancassurance. Through the study of the market efficiency, this article believes that bancassurance market in our country is becoming more and more effective through both seductive and forced institutional changes. This article also shows a reliable developing path to the bancassurance in our country: based on the initial conditions of existing institutions, take one aspect of all the institutional changes as breakpoint to carry forward the innovations and changes of the formal and informal institutions including but not limited in products, business processes, regulations, organizational models and so on. The final part of this paper raises some possible suggestions to solve the existing problems of bancassurance.