The Competitiveness Of Insurance Services Of China And The Empirical Analysis Of Influencing Factors

The process of globalization and the rise of knowledge-based economy havepromoted the shift of international trade pattern from trade in goods to trade in service.After the signature of'GATS'and'Financial Services Trade Treatment', global tradein financial services trade has become a new growth point in services. The insuranceindustry is one of the three pillars of modern financial industry, it has three functions:risk controlling, economic compensation and social management; the insurance service has a deep influence in all aspects of economic sectors. As the most important part offinancial services trade, the development of insurance service plays a very role onprotecting China's foreign trade and upgrading the trade structure .the competitivenessof insurance trade directly affects the development level of financial services, affecting our participation in international division process in service trade. Throughout thestudy at home and abroad, the systematic research of competitiveness of insurancetrade is very little .Thus, the comprehensive analysis of trade competitiveness and themajor impacting factors of China's insurance trade can not only expand the scope ofthe insurance industry, filling the gaps in competitiveness research of insurance trade,but also have an very important practical significance in promoting the developmentof China's insurance trade.This article focuses on the competitiveness and key factors of insurance trade ofChina under open conditions. Firstly, On the basis of analyzing the status quo of China's insurance industry and the development of insurance trade, we have a comparativestudy about china's insurance services trade by using market openness, internationalmarket share, TC index, RCA index and G-L index with U.S., UK, Japan andSwitzerland. The results show that all the index of China are in a backward position, the competitiveness of China's insurance trade is relatively weak, at a apparentcompetitive disadvantage. After that, using Michael·Porter's"diamond model"andprincipal component analysis,we have an empirical study of the factors which affecting the competitiveness of China's insurance trade. We find that the assets of insurancecompany, personnel structure, disposable income, trade in goods, FIR and FDI in theinsurance industry have a more significant influence on China's insurance exports.Finally, the article suggests some proposals to improve our competitiveness in theinsurance trade.