The Research On The Anhui Industrial Organization Of The Insurance Ingustry

Since the restoration of the Chinese insurance in the1980s, the overall strength has been scaled to a new level. China become the world’s most important emerging leading powers in innsurance. Anhui Province, as a populous province in central of China, the insurance industry can be said to be a microcosm of the national insurance industry. The insurance industry of Anhui Province in recent years has maintained a rapid growth rate, regardless of the number of market players, premium size, has made rapid development.The end of2010, there are39provincial insurance agencys in Anhui Province.and the premium income reached40.04billion yuan.insurance industry has become the fastest one of the important industries of Anhui economic development.However, the rapid development, we should see the shorts. The overall strength of the insurance industry of Anhui Province in the Nationwide, only at the middle level, compared with the more developed provinces and the gap is still great.Therefore, we need make a systematic analysis of the Anhui insurance industry status,it is useful to insurance supervision departments and insurance companies to take measures to enhance competitiveness,and also it has a strong pranctical significance to overall economic strength of Anhui Province.This paper based on the theory of industrial organization, using the modern theory of industrial organization as the main theoretical tool, using a combination of theoretical analysis and empirical analysis, makes systematic analysis of the main features of the Anhui insurance market in the framework of the SCP analysis paradigm, and thus draws the following conclusions1, Anhui insurance market is an oligopoly market structure, but with the market share of the PICC, China Life, and other large insurance companies declining, the market concentration of Anhui Province’s insurance market is also declining by years.I believe, monopolistic competition market structure will be the market structure of the future goals of the insurance market in Anhui Province. At present, the insurance market in Anhui administrative higher barriers to entry and exit barriers than imperfect, insurance lower degree of product differentiation, have all contributed to the insurance market concentration in Anhui Province reasons for the higher.2. In the insurance market of Anhui Province, non-stoped out-of-order and malignant competition as well as insurance product homogeneity serious,the reason of all these problems is the lack of insurance product competitiveness. The study of its deep-seated reasons, but also stems from the oligopoly market structure, leading to small and medium enterprises can not be reasonable and fair competition in the market, it can be said that the market structure has had a profound impact on the main market behavior in the insurance market in Anhui Province. At the same time, improper market behavior will reflexivity affect the development of market structures.3. Anhui insurance market has been keeping a forceful increasing tendency these years, but across the country, it just belong to a lower level. The study indicates that, to improve the level of performance of the insurance market in Anhui Province,we need to vigorously develop the economic level in Anhui Province, as well as to improve the level of the market structure of Anhui Province insurance industry.Based on the analysis of the status of the insurance industry of Anhui province,this paper puts forward industrial organization policy proposals,contributable to the development of Anhui insurance industry.First of all,optimize the market structure.It is necessary to encourage SMEs to enter the insurance market, and to encourage the cooperation of the banking, securities and other financial institutions and the insurance industry,in order to promote effective competition in the insurance market, while improving the market exit mechanism; Secondly,market behavior standardized.Product and service innovation should be established,the market-oriented pricing mechanism should be improved, and the the insurance product rates should be gradual market-oriented;Thirdly,improving the insurance market performance.Establishing a rational scientific evaluation system to encourage primary insurance institutions operators to pay more attention on the quality of the insurance business.In addition,it need to establish the soundness of the insurance regulatory system, and to improve the relation among insurance regulators, insurance industry associations,and the Insurance Institute.