The Regional Differentiation Research About Needs Of Life Insurance In China

Since our country makes reform and opening policy, with sustained economicdevelopment and the people’s standard of living has risen steadily, the insurance industrymade great progress. Especially life insurance recovery after operation was developingrapidly since1982.However, in recent years the Chinese life insurance market insurancefee income increases slowly, life insurance industry showed negative premium growthcompared to the same period of the last few decades. In addition, owing to the influencesof special geographical environment and historical background, the life insurance has hugedevelopment difference exists in the eastern, middle and western areas. The situation islikely to be one of the bottlenecks of current and future development of life insurance inour country, which is unfavorable for the sustainable development.Firstly, the literature review this paper, although the domestic and foreign scholarshave done a lot of theoretical and empirical analysis on influencing factors of life insurancedemand and for the individual factors formed the same conclusion and for the individualfactors formed the same conclusion, these studies are more focused on the transversecomparison of different countries, a few scholars in different parts of the same country todo some research work.Since insurance industry plays a more and more important part inChina’s securities market, more people have begun to attach importance to the study ofinsurance industry. Life insurance is an important part of modern insurances and theproblem of unbalanced development in different regions of our country becomes the focusof researching. Current research aims at the regional unbalanced problem of life insurancegrowth, the choice of the related indexes and to exist some disputes on the classification ofa particular area. Therefore this paper divides different regions of China and chooses theappropriate factors to analyze the differences between them. Thus and further the researchresults have great signification in improving the life insurance industry.Secondly, because of many factors that affect life insurance demand, we set up PEST Model to analyze political environment, economic environment, social environment, aswell as the trend of the development of insurance industry, by positive research. Thesethree angles to extract relevant factors as explanatory variables, with the life insurancedensity as explained variable modeling analysis. According to the concrete status of ourcountry, analyses the influencing factors of the same in different areas of life insurancedemand in China about the relevance of differences.At last, the paper uses panel data from2008to2012for empirical testing，interrelatedanalyses conclude that the life insurance demand difference between regions is caused bymany factors. In order to promote the development of life insurance in our country overallbalances, in the end, give some suggestions for making a policy to government by my ownresearch. For instance, differentiation of regional financial policies, guide the talent flow,actively perfect the social security system of our country, improve national quality,improve innovative capability of insurance company.