Research On The Impact Of Insurance Development On Economic Growth In Shaanxi

Insurance is one of the three pillars of the financial industry. In the modern economic society, risk management, economic compensation, financing and social management functions are ultimately exercised in insurance. The international practice and research show that, insurance and economic growth have a very highly correlation. In the past30years, The growth rate of insurance industry is obviously higher than that of national economy, the status of which also significantly improved, become an important sector in economic development. Because of the unbalanced regional development, the regional differences of insurance are also obvious, therefore, the relationship between the regional insurance development and economic growth is an important issue that worth to in-depth study and discussion.This paper studies the problem of relations that insurance in Shaanxi province development and economic growth in the western region of China. This paper firstly reviews related literatures on insurance and economic growth home and broad. Secondly, relevant theories on the relationship between insurance and economic growth are analyzed, which establishes a theory foundation for the empirical research. Thirdly, the basic situation of the insurance and the economic development in Shaanxi is summarized, and shows the deficiency in Shaanxi province. Fourthly, the paper chooses quarterly data from2004to2013in Shaanxi, empirically analyzing the influence of the premium income on consumption, investment and export. Lastly, puts forward the related countermeasure proposal.The main conclusion of this paper include both theoretical and empirical aspects. First, Pagano model based on the new financial development theory shows that the proportion of the insurance industry affected by the conversion of savings to investment, capital allocation efficiency and savings rate to promote economic growth. Second, the insurance industry to promote economic growth through consumer channel, through risk management function enables preventive reduced demand to increase consumption. Third, the insurance industry to promote economic growth through investment channel, gathering funds through financial intermediation function, provide a source of funding for economic growth. Fourth, the insurance industry to promote economic growth through export channel, export credit insurance for exports and overseas investment provides trade protection. Fifth, The government should strengthen the construction of the insurance market system, to consummate the insurance regulatory system; insurance companies should be innovative products, improve the level of utilization of insurance funds.