Study On The Development Potential Of Rural Commercial Insurance In Henan Province

The commercial insurance in rural areas plays an important part in Chinese commercial insurance market. As early as in2005, Dingfu Wu, then chairman of China Insurance Regulatory Commission had emphasized the importance of developing the insurance market in the Chinese county. He has said that developing the insurance market in the county is the need for supporting for agriculture, rural areas and farmers, and serving for the overall national economy, which is also the need for realizing the sustainable development of the insurance industry, and the need for exploring the insurance industry development road with Chinese characteristics. In2012, China Insurance Regulatory Commission has given notice to each insurance company, and requires them to advance the agricultural insurance development actively yet prudently. In2012, the Ministry of Finance has also informed the local finance departments to further strengthen the support for the central fiscal agricultural insurance premiums from the aspects such as the premium subsidies variety, premium subsidies area, security level and subsidies proportion and so on.Therefore, the rural commercial insurance market has a broad space for further growth and a good policy advantage as well, which will be future direction of Chinese insurance industry. In addition, researches on the market potential of the rural commercial insurance will provide a certain reference for various insurance companies to enter the rural insurance market.This paper puts forward the basic concept of rural insurance, and reveals the developing situations of commercial insurance in Henan rural areas presently from the development scale, product structure, market shares and coverage areas of the insurance by referring to research achievements at home and abroad and points out two major constraints to the commercial insurance in Henan rural areas. In addition, this paper also analyzes the huge and potential development ability in Henan rural commercial market from the natural and geographical areas, rural incomes, population, consumption structure and industrial structure, and proposed the forecast to the prospect for the commercial insurance market development in the future in Henan rural areas. This paper proposes the specific suggestions for prompting the development of rural commercial insurance in Henan province based on the above discussions.The main conclusions of this study are as follows:First, it is proved that there is great potential in Henan rural commercial insurance by analyzing the absolute data and relative data, which is worthy of commercial insurance institutions for business development.Second, for small and medium-sized insurance companies, the channel power should be fully used in expanding the rural market, and the cooperation consciousness should be played especially with the co-insurance method to make you far more effective in the endeavor.Third, for the development of rural insurance business, it needs the insurance enterprises to improve themselves, but the government and supervision developments should provide further support from the aspects such as the legal publicity, increased regulatory oversight, protection and preferential policy implementation and so on.The innovation of this paper is to divide the development of Henan rural commercial insurance systematically. It comprehensively analyzes the potential and huge development ability in Henan rural commercial market, which has stronger guiding significance with its practical data support. On this basis, based on this large province in insurance, this paper also proposes the specific suggestions for promoting the commercial insurance development in Henan rural areas; especially its co-insurance mode has great practical significance. In addition, the deficiencies of this paper are listed as follows:Firstly, the analysis method needs to be specified further.Secondly, the data required for the research is not sufficient enough and the research depth is not enough either.Thirdly, effective data model is not built.