Analysis On Long - Term Linkage Effect Of Insurance Development And Residents' Consumption In Shaanxi Province

Insurance is a kind of market-oriented way to deal with all kinds of disasters and emergency, proper arrangements of physical, risk transfer mechanism of social management, it can replace precautionary savings to a great extent. Developing insurance industry can effectively reduce consumer savings of caution, optimize the distribution of residents’ wealth, safeguard consumer’s long-term stability, it is an effective measure to boost consumption, premium income is high-speed growth in China. It promotes residents’ consumption. But the problem with the unbalanced regional development of insurance exists in our country, There is a big difference between eastern and western region development.The research on the relationship between insurance development and residents’ consumption is still in the preliminary and exploratory stage at present. Academia is generally accepted that insurance development can play a role, but to the internal relations between the two gave no strict test. This paper studies the long-term effects on the insurance development and residents’ consumption in Shaanxi Province.Select the datas from 1985 to 2014 year and use the VAR model. After unit root test, cointegration test, impulse the response analysis to determine the order after a lag. Finally, give relevant policy recommendations.The main conclusions of this paper includes, There is a long-term linkage between insurance development and the residents’ consumption.; There are problems in development of insurance in Shaanxi Province, such as narrow insurance coverage, imbalance of regional development, high market concentration, less competitive products and services.the insurance company should increase the insurance portfolio and broaden the scope of business, strengthen risk management, while increasing the level of funding applications to guide consumers to improve the consumption structure.