The Study On Contribution Of China’s Insurance To Economic Growth

Since1980, the insurance of China has gone through a stage of rapid development.It has made great achievements now, include premiume、insurance penetration and insurance density. With China’s rapid economic development, the insurance’s impact on economic development has become increasingly apparent. Insurance is part of the financial services, so it has the same economic function as financial services, such as creating added economic value directly、financing、social resources allocation; on the other hand, insurance also has function of economic compensation and social management, so insurance can make a special contribution on economic growth.This paper will use the research methods of theoretical and empirical. First of all, analyzing the insurance’s role in promoting economic from theoretical explanation., Secondly, calculating the insurance added value’s contribution and contribution rate to GDP,Then using the input-output analysis to analyze the interaction between insurance and other industry, the conclusion can show the insurance’s indirect contribution to the economic growth. In conclusion, we ultimately come to restrict factors of China’s insurance development,the end is reasonable policy recommendations and reform measures.This thesis includes six parts, the following is a brief summarization of chapters.Chapter 1 is a preface, which lists research purpose, research significance and insurance industry research status in China and abroad. Moreover, there is a summarization of research contents for the study paper.Chapter 2 analyzes present development of Chinese insurance industry from aspect of premium income, insurance compensation, insurance industry assets, insurance depth and insurance density and so on. Chapter 3 studies insurance industry’s contribution to economic development from the theory. Firstly, as part of financial system, which can promote economic development, insurance industry has the same function. Secondly, insurance industry has three functions of economic compensation, capital financing and society management, through which plays a very important role in economy growth and social stability.Chapter 4 studies insurance industry’s direct contribution to economic development by measuring contribution rate of insurance added value to economy growth, whose output is part of GDP, as part of the industrial sector. Meanwhile, the rapid development of the industry has a great contribution to social employment.Chapter 5 analyzes insurance industry’s influence on other industries development in China. Firstly, the part reasons the association degree between industry and other industry through input-output model and analyzes input-output relationship between them using our input-output tables of 2007 to calculate insurance industry’s direct consumption coefficient and complete consumption coefficient. Furthermore, the part analyzes the general influence on economy by calculating the insurance industry’s impact and sensitivity.Chapter 6 summarizes the analysis above and brings forward appropriate development proposals taking the feasibility into account.