The Research On The Development Plight Of Import And Export Cargo Insurance Market In China

In the long-term practice of navigation, people formed a method to share the loss caused by the unpredictable accidents among the majority. The method is marine insurance. Marine insurance not only records the long history of human’s devel-opment, but also escorts the maritime trade of human. And in the meantime, it plays a strong role in promoting the development of modern foreign trade.Speaking to China, reform and opening up policy promotes the foreign trade. Chi-na has proposed the basic national policy and economic policy which is to take economic construction as the center, establish export-oriented economy, and use export to stimulate domestic demand. Thus, government provides a very good pol-icy and economic environment for the development of the marine insurance busi-ness in China. In such a good environment, import and export cargo insurance provides a strong insurance protection for the expansion of China’s foreign trade business.With the pace of reform and opening up policy, China’s foreign trade has begun to develop gradually since the1980s. The main goal of China’s foreign trade is to expand the export and earn foreign exchange. In30years, China has given full play to the advantage of cheap labor and increased the labor-intensive products, greatly expanding the export trade. China accesses to a large number of foreign exchange earnings because of the foreign trade expanding, meanwhile, it also con-tributes to China’s industrial upgrading and scientific and technological progress.With the continuous development of China’s foreign trade from the last century, from the1980s to the mid-1990s, the development of China’s import and export cargo insurance is fast. In the import and export trade business,70%-80%of the import and export cargo insurance is chosen to insured in the domestic insurance companies. From the late1990s, China’s foreign trade was in the high-speed de-velopment, the scale of trade continued to expand. Shipping, air or rail transport has seen significant development. But China’s import and export cargo insurance did not appear the expected good momentum of development. As can be seen from the China Statistical Yearbook, China’s import and export cargo insurance pre-mium income in the proportion of the entire property insurance premium income decreased year by year. In the prosperous era of entire insurance industry, people have to think over and reflect on it.Of course, the loss of insured or the source groups is the direct cause of this prob-lem. However, we should see the rationale and the real reason behind this result. We need an in-depth study to see what causes the plight of China’s import and ex-port cargo insurance market.The idea of this study is to start with the status of import and export cargo insur-ance. And then, to compare the import and export cargo insurance market with the development of foreign trade by correlation analysis, and find the correlation is significant. But the import and export cargo insurance does not catch up with the pace of the rapid development of foreign trade. After finding the import and export cargo insurance market development predicament, use the insurance transaction as the starting point, analyze by decomposing the demand-side and supply-side transaction costs, combine with the game model of the trading process, find the influencing factors of plight. Finally, recommend the settlement proposals.The first part, describe the historical development of the import and export cargo insurance, the characteristics of it, and the present situation in China. Then in order to understand the current research status, summarize the research literature of Chinese scholars on the development plight of import and export cargo insurance. Because the second half of this article use transaction cost analysis as the basis. So the development of transaction costs and its usage in insurance are briefly summa-rized.The second part, analyze the import and export cargo insurance market develop- ment dilemma through empirical analysis. First describe the development situation of China’s foreign trade and import and export cargo insurance detail. And then through the statistical analysis, take significant correlation and the development of inconsistency of both as an entry point. After that raise the development plight of China’s import and export cargo insurance market.The third part, take the process of transaction in the insurance contract signed as the basis, analyze the demand side and supply side of the insurance transaction. On this basis, analyze the transaction through the static game and dynamic game mod-el and find the further reasons behind the plight.The forth part, in order to promote the insurance transaction, starting from the de-mand side and supply side, through the control of transaction costs, make recom-mendations for the solution to the development plight of the import and export cargo insurance market.The innovation of this paper is to put an eye on the import and export cargo insur-ance industry which is related to the macroeconomic of China. Start from the con-cept of transaction cost and game theory to analyze the decision-making of the in-surance transaction. And in the last, propose the final recommendations for the development of import and export cargo insurance market.The inadequacy of this article is that the data support is not enough. So the conclu-sion of the empirical research was not thorough enough. In addition, in the litera-ture of our country, the researches on the import and export cargo insurance are more towards international commercial law or insurance benefits. The researches on the market development are less. So I may be lacking in theoretical depth and detail.