| Since the1980recovery of commercial insurance in China, the scale of lifeinsurance industry in China are experiencing a rapid growth after30years’ high speeddevelopment. However, compared with OECD countries, the level of life insuranceindustry in China are still relatively very low, which do not match the level ofeconomic development of China. The most prominent problem is that life insuranceindustry development balance badly when it comes to different regions and thesituation is that Eastern China performs better than Central China and Central Chinadoes better than Western China. As a vital compliment of social security system ofChina, the balanced development of life insurance industry will directly influence thestructuring of harmonious society. Therefore, How to develop life insurance industryin China balancedly has always been one of the most important issues to seekingsolutions for.Demand for life insurance is the essence of development of life insuranceindustry, and determinants of demand for life insurance is one of the breakthroughs toresearch the development direction of life insurance industry. Generally, there arequite a few factors that affect demand for life insurance. Ziets (2003) divided thedeterminants of demand for life insurance into two sorts according to the researchfindings of predecessors, namely Personal and Demographic Determinants andFinancial and Economic Determinants. Determinants of demand for life insurance arealso varied, and the quite different levels of life insurance development contributeplenty of uncertainty and difficulty to the study on the determinants of demand for lifeinsurance.Nowadays life insurance industry in China is stepping into a transformationperiod, and it is a task of priority for life insurance industry in China to understandand meet people’s demand for life insurance in the new decade. The diversities ofeconomy and culture in regions make the determinants and their influences different.Hence, there is a very necessity to conduct a research on determinants of demand forlife insurance regionally.Theoretically, determinants of demand for life insurance in China are reviewedand they are divided into seven economic determinants and six social determinants.According to the situation of China, Urbanization, Gini Index and Average HouseholdSize are newly considered, and panel data model is set and empirical analysis of thedeterminants is carried out based on the1997-2011annual statistic data of differentregions of China. Finally, policy proposals to stimulate demand for life insurance areput forward according to the result of empirical analysis. |
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