A Study On Paths Of Rural Residents’ Rising Demand For Life Insurance

Life insurance industry began in the development of rural areas across the country dates back to1994, because it is still at the initial stage, there is a wide gap between the rural insurance development level and city, how to effectively enhance the life of rural residents in China’s current development needs to become an urgent problem. Therefore, choosing the factor which has an important influence for the increase in life insurance needs of rural residents has important theoretical and practical significance. This paper reviews the domestic and foreign scholars for life insurance needs of theoretical and empirical research, making a presentation in theory for it, introducing the Lewis life insurance demand theory model and on this theoretical model making qualitative analysis of determinants about the impact of the life insurance needs of rural residents. Then from the development of China’s rural life insurance market status as the starting point, examining the problems which exist in the development of the life insurance in rural areas. Last but not least this paper listing the positive effect of developing the life insurance market in rural areas. From the result of empirical analysis, we can find that the income level of rural residents has the strongest explanatory to the life insurance demand, and the rural residents’savings deposits growth, rural population growth have increased farmers’demand for life insurance, and the demand for life insurance in a significant positive relationship between clearance. However the level of education of rural residents and children dependency ratio as the special nature of rural areas show a negative correlation, the old age dependency ratio and the demand for life insurance among rural residents no significant causal relationship. Finally, according to the analysis of the results obtained in this series to enhance the life insurance needs of rural residents in the path of choice, in the specific strategies need to increase famers’incomes, and life insurance companies to accelerate product innovation, changing life insurance company’s business concept and increasing propagandist, in the external environment of the construction we can make preferential policies in rural areas,so life insurance in the rural area would enjoy policy environment support.