The Comparison Of The Effect Of Economic Growth For The Insurance Industry Development

In recent years, the insurance industry has obtained remarkable development, while a lot of problems have arisen. A significant one is the unreasonable structure of insurance market. It causes fluctuation to its effect on the economic growth. Regional insurance industry is playing a more and more important role in promoting regional economic development and stabilizing social harmony. However, the relationship between regional insurance industry and local economic growth is still unforeseen. Based on this, this paper researches the relationship mentioned above.This paper firstly defines the concept of insurance divisions, which divides our country’s insurance region into the eastern, central and western parts. Then it explains the influence factors of economic growth. Through the demand, capital accumulation, science and technology and human resources, insurance effects on economic growth. Finally, this paper summarizes how these factors effect on economic growth.Based on the related indicators of insurance market development index, this paper gives a quantitative analysis of the differences between regional insurance market’s gross index, speed index, average index, insurance density and insurance depth. Then it employs principal component analysis method to evaluate the development and differences of the insurance industry of these areas comprehensively. The result shows that the insurance industry development in east, middle and west appears gradient distribution. It is strong in the east but weak in the middle and west while the speed of the development is on the contrary.In the empirical analysis, this dissertation firstly compares the promoting function of the insurance industry outcome in these three areas, then employs panel data model to discuss the regional insurance industry development composite index’s influence degree on the economic growth. Based on the differences of the east, middle and west, it analyses some probable causes.In the end, based on the analysis above, this paper discusses the ways which can help our regional insurance promote the regional economic growth more effectively.