Research On The Effects Of Demographic Changes On China’s Life Insurance Market

With rapid socio-economic development and strong implementation of family planningpolicy, a major change has been happened about the structure of China’s population in the lastthirty years. Child dependency ratio is declining, population aging trend is becomingincreasingly apparent; demographic gender imbalance is still outstanding; the urbanizationaccelerates the process about the transformation of rural population to urban population;overall cultural level of the population’s quality has been significantly improved. At the sametime, since1982China’s life insurance market to resume business, the business has beenexpanded rapidly and product categories has been constantly enriched, the business entitiescontinue to increase and the exhibition industry increasingly standardizes management, withachieving a rare leaps and bounds. In2013, Chinese life insurance market has achievedpremium income of1.100998trillion Yuan, for the masses to provide a multi-level, all aspectsof insurance services. Demographic changes will inevitably affect the economic and socialinstitutional arrangements, insurance as a risk-sharing compensate for the loss of theeconomic system can be said to be closely linked to the demographic situation, and especiallylife insurance has a more direct link to it. Based on this, we use the theoretical analysis andempirical research methods to explore the impact of changes in China’s population structureeffects on the life insurance market and policy reform proposals have been put forward underthe demographic trend of changes in personal insurance market.Specific arrangements are as follows: Firstly, the general theory of population structurewere discussed, with introducing the connotation, classification and the study of demographicdevelopment context, and we describe the relevant theoretical basis for the study of therelationship between population structure and insurance. Then after a detailed description ofthe demographic trends and current situation of China and the personal insurance marketdevelopment, we use the quantile regression method to study the effects of demographicchanges on the impact of the life insurance market. Finally, on the basis of empirical results,the use of diamond model has been into the overall evaluation of the current China’s lifeinsurance market, and then from the perspective of the regulatory body and business entitiesfurther reform measures related to personal insurance market have been put forward.