Study On The Relationship Between The Urbanization And The Development Of The Insurance Industry

This paper has studied the relationship between the urbanization and the insuranceindustry by theoretical analysis and empirical analysis. Urbanization promotes thedevelopment of insurance industry and inspires the insurance market potential，through theeconomic development and the population development. On the other hand, the insuranceindustry not only provides financial support for the urbanization, but also improves the socialsecurity system and reduces the economic loss. In the empirical analysis, using factor analysisto analyze the urban per capita disposable income, the proportion of non-agricultural industryto GDP, the per capita total of import and export, the per capita total of social consumergoods, the proportion of urban population，the town of unit area of the population proportionof employment and per capita urban fixed asset investment，has determined the coefficient ofprincipal component factors and derived a comprehensive index of urbanization. In order tolearn the relationship between urbanization and the insurance industry, has selected thepremium income, the urbanization level, GDP, the rate of population increase, and CPI toanalyze by VAR model. The studies have shown that the urbanization and insurance industryhave stable relationship in the long-term, and the ability to predict each other is very stronger.The impact of urbanization to itself is bigger in the early time, but the last effect is small. Theinsurance impact to itself is significant in the long term and the sustainability is very efficient.The impact of the urbanization to insurance is superior than the impact of the insuranceindustry to urbanization. The self-perfection and self-development ability of urbanization isstronger, but the self-improvement mechanism of the insurance industry is weak. Thecontribution of urbanization to insurance is better than the contribution of insurance tourbanization.