The Empirical Analysis To The Influencing Factors Of Life Insurance Demand In Henan Province

Insurance is a means of protection, through the payment of certain benefits, in order to achieveprevention against unknown risks. Ever since the emergence and development of the insurance industry,covering almost every aspect of life and work, paid protection for people’s health and property, is themust-have industry into a modern society. Life insurance has the function of risk spreading, economiccompensation and improve the ability to resist the risk, etc, and the industry of life insurance is animportant financial industry which is relationed to national economy and people’s livelihood, then makes asignificant contribution to the level of economic development of our country. With the increasingly goodeconomic development trend of Henan province, the residents ’ income is no longer limited to the clothing、food and shelter, and there is the significant increasing in consumption of goods, such as life insuranceproducts.Throughout the developmental process of henan province, it is not difficult to find that the socialsecurity level is generally low in henan province, the vast majority of the residents still need to rely onthemslves to solve the life risk, and the ability of keeping from the damage and compensating for the lossesis still lower. Additionally, the species of risk which is produced by the economic development arebecoming more and more diverse, and the degree of damage is more and more serious, then the demand oflife insurance which is from resident is also growing. As a result, since henan province restores the lifeinsurance, the level that residents demand life insurance enhances unceasingly, and the income of lifeinsurance premium is increasing year by year, protecting the personal safety of residents in henan province.According to the statistics, in1997, the income of insurance premium is1.995billion RMB in henanprovince, and by2011, it rose to67.676billion RMB. But in2012, the income of life insurance premiumappears the phenomenon of negative growth for the first time. This phenomenon shows that the level of lifeinsurance demand fell down slightly for residents in henan province in the years, bringing the loss of profitto each operator. The emergence of this phenomenon is partly due to the change of interest rate, reducingthe level of demand that residents regard the life insurance as an investment object. At the same time, thegrowth of the social insurance fund improves the resident’s ability to resist risk in a certain extent, and thisindicates that the life insurance industry in henan province is in urgent need of transformation and adjustment, in order to reflect changes in life insurance needs of residents in the new environment. As aresult, how to according to the characteristics which are reflected by the development of life insurancedemand for the residents in henan province, and find out the factors that influence the life insurancedemand, then make the level of life insurance demand return to growth quickly and improve itfundamentally. In a short, this has a certain practical significance for the development of life insuranceindustry and even the whole economic level in henan province.This paper uses the method of combining qualitative analysis with quantitative analysis, and applysthe empirical analysis to the influencing factors of life insurance demand in henan province, then draws aconclusion and gives some advices to how to improve the level of life insurance demand, finally lists theinstance of reform in order to strengthen the feasibility. Specifically, this paper firstly elaborated theresearch background and research significance of this paper, and finds the research direction and innovationpoint of this paper by reviewing the related literature at home and abroad, then highlights the research valueof this paper; Nest, qualitative analyzes the life insurance and its demand from the aspect of economictheory, and enumerates the brief theoretical model of life insurance demand, with discussing the basicinfluencing factors of life insurance demand; Then uses the method of quantitative analysis, and combineswith the related data and charts, analysis the demand of life insurance market in Henan province, expoundsthe current needs of the life insurance market, mainly includes the total statue, the structure, the distributionand the characteristics and so on; On the basis of an earlier, respectively from the life risk, the insurancesuppliers, the economic point and the social point, applys qualitative and quantitative analysis to how thesefactors influence the life insurance demand in henan province. Shortly thereafter, bulids a economic modelto make an empirical analysis of the influencing factors of life insurance demand in henan province by themethods of econometric analysis, such as the Eviews software, etc. Finally, draws a conclusion on the basisof the above research, and puts forward some advice about how to further improve the life insurancedemand in henan province, with strengthening the feasibility by the instance of reform.Throughout the whole paper, through the comprehensive analysis of the life insurance demand inhenan province, making the conclusion and putting forward some related suggestions, then it is good forthe insurance company which supplys the life insurance products in henan province completes the shift ofmarketing strategy during the period of transitional adjustment, solving the problem that the level of consumer demand is dropping fundamentally. At the same time, the innovation is showed in the followingaspects: this paper takes henan province as the object of this research, making an empirical analysis to theinfluencing factors of the life insurance demand in henan province, adds to the theoretical study to it, thenhas a certain practicality to the development of life insurance market in henan province; Though collectingthe data, then using the method of qualitative and quantitative analysis to study the life insurance demandin henan province, respectively from the point of the life risk, the insurance suppliers, the economy and thesociety; Through the research on historical data relevant to the life insurance demand in henan province,establishing the multivariate regression model which shows how the factors influence the income of lifeinsurance premium; Finally, giving the suggestion to improve the level of the life insurance demand inhenan province, and by using the case to strengthen the conviction.