Demands Analysis Of Microinsurance In Liaoning Province

Microinsurance comes up in developing countries recently years. It's designed to protect low-income households, because they're vulnerable to risks and economic shocks. Due to its low price, poor people can afford it. In a sense, microinsurance is an anti-poverty tool. It can assist low income households to maintain a sense of financial confidence even in the face of significant vulnerability. It brings light to our country for making insurance products which're provided for farmers. Microinsurance could be used to develop our harmonious society and new rural. So our government pays attention to it and has promulgated series documents to support it. Also, China Insurance Regulatory Commission takes action in this area and does some research about it. Meanwhile, some commercial insurance companies show interests on it and try to provide someproducts for poor people. But there is little literature about Microinsurance in China today. When we take big move on Microinsurance in Liaoning, we must wholly understand it and make sure that it's suitable for us.The paper mainly discusses what is Microinsurance, the necessity and feasibility for China developing Microinsurance, how about Microinsurance develops in other countries and what can we learn from them, the present situation analysis of Microinsurance in China, especially in Liaoning province and how to promote our Microinsurance development in Liaoning. According to these questions, there are six parts in the paper, including five chapters.Chapterl gives a simple introduction about this paper, including the research background, objectives, methods, literature review and the new idea of this paper.Chapter2 is a general introduction of Microinsurance. It begins to discuss what is Microinsurance and how can we understand it.According to CGAP, Microinsurance is the protection of low-income people against specific perils in exchange for premium payment proportionate to the likelihood and cost of the risk involved.This definition indicates Microinsurance belong to insurance.But its object market is different from ordinary insurance, so there're a lot of differenceses Policy Recommendations to Promote Microinsurance Development in China between Microinsurance and ordinary insurance.Charpter3 introduces the practices of Microinsurance in Latin America, Africa and Asia.Through their experiences,we could learn something.As we known,India is the originator of Microinsurance.It's a good case for us to research.India government gives a lot support to develop Microinsurance which is very useful and important. Commercial insurance companies must provide poor people products.To cite an example of Indian's microinsurance operation and cash flow, we talk abut a microinsurance plan called Sampoorna Suraksha Yojana(SSY).Finally, I would like to show the challenge and opportunity we confront with and present new tendency of microinsurance.Chapter4 describes the present situation analysis of Microinsurance in China.Microinsurance could help us develop our harmonious society and new rural,and take a chance for commercial insurance company to implement the function of social management. describes the operational mechanism of Microinsurance. It includes the product design, marketing, collecting premium, sales model providers and risk management.Chapter4 is the core part of the essay. It take Liaoning province as the sample to search some factors affected the miroinsurace demand. In view of unique economy structure in Liaoning, we cannot used former research method. Combine with economic development in rural area, we use targted analysis to study the factor. Based on Liaoning urban household survey,we make use of factor analysis and Logistics regression analysis to explain some factors how to influence mircroinsurance's marketing in Liaoning.Chapter6 discusses how to develop Microinsurance in China. First, it summarizes the challenges in front of us,including the problems of Microinsurance itself and the special conditions of China. Considering all thefactors, the paper suggests government Microinsurance should make good use ofits political power to cover more people, educate public and so on. When commercial insurance companies develop Microinsurance, then should pay attention to products design and marketing. All factors that affect the customer decision should be considered. Marketing must train market, provide service and promote together. Political support and management are the duty of government.Due to my limited knowledge,there are still a lot of questions about Microinsurance need to answer. And the suggestion may be not detail enough.