Factor Analysis And Empirical Study On China’s Demand For Life Insurance

Multi-factor analysis of demand for life insurance is always a research hotspot in China.Since the restoration of life insurance business in1982, China has witnessed a rapid development of life insurance industry. The life insurance industry has experienced a constant development. Life insurance premium income has increased from0.02billion in1982to8695.6billion in2011, at an average annual growth rate of as high as63.085%. Although insurance demand has been developing rapidly, there are still problems that can not be ignored. China is a huge potential market for life insurance. As the thorough opening of insurance, there will be a favorable external environment for Life Insurance consumption (LIC). So it is meaningful to do some research on LIC.Firstly, This paper reviews the domestic and foreign scholars on the life insurance demand research results at home and abroad, and on the basis of research results, for some life insurance demand determinants are qualitative analysis. Then On the base of analysis the life insurance development status and problems, this article will conduct a comprehensive economic analysis of the factors affected the demand for life insurance associated to the actual situation of our country, and analyze factors affecting China’s life insurance needs and potential through the establishment of multiple linear regression model and the corresponding empirical research. Ultimately determine the demand for life insurance life insurance density as representative, per capita disposable income, savings, per capita disposable household income, total dependency ratio, interest rates and years of education as influential factors of life insurance demand in China representative, using relevant data from2006-2010, through the establishment of a panel data model the corresponding empirical study and established by adding a three time dummy variables of individual effect model. And finally, draw the appropriate conclusions on the basis of empirical results, And for the perfection of China’s life insurance industry puts forward policy recommendations, which is essential to the sustainable development of life insurance industry and the maturity and improvacion of life insurance market.