| China’s life insurance has huge potential. Life insurance demand shows obvious regional differences. China Insurance Regulatory Commission figures released, in 2014, China’s insurance penetration was 3.1% and insurance density was 1487.79 yuan. In sharp contrast, the insurance penetration in OECD countries over the same period was 8.2%, with an average of $ 2,808 insurance density. Besides, China’s insurance industry’s development goals are by 2020 insurance penetration will be 5% and insurance density will be 3,500 yuan. Development of China’s insurance market is not yet mature, with great potential for development. In addition to a lower per capita level, since the natural geographical environment and economic development gap and other factors, China’s life insurance needs show significant regional differences. Uneven development between regions is not conducive to the healthy and sustainable development of the life insurance industry. Therefore, the study of regional differences in demand for life insurance has a practical significance to promote the healthy development of the life insurance industry.This paper aims to answer the following two questions:First, what is the different levels of development in different regions of the life insurance needs of China; the second is what are the differences between the level of social security, education, equity and income factors affect the demand for life insurance in the different levels of the region. On the basis of previous studies, we use six indicators (per capita GDP, the number of financial jobs, per capita insurance premiums income, child dependency ratio, old age dependency ratio, the number of college) to divide China’s life insurance area. By using clustering analysis method China is divided into three kinds of areas. Then we use Panel Data Model to research social security, stock prices, education, income’s impact. Data used in this study were from the "China Statistical Yearbook"(2009-2014), "China Insurance Yearbook"(2009-2014) and public data from China securities association.The results showed that the level of education has the strongest explanatory power of the life insurance needs. Regionally, the level of social security in the high life insurance development area has a significant positive effect on life insurance consumption. Shares in different level of regions in the development of life insurance showed obvious difference. Income on life insurance showed a significant role in promoting in low level of development of life insurance area. In terms of the insurance varieties, the social security of the traditional life insurance demand and investment-oriented life insurance demand showed a significant positive effect. Stock’ price shows a positive effect on demand for traditional life insurance, a negative effect on investment-oriented life insurance demand. Income to the traditional life insurance and investment-oriented life insurance are characterized by negative utility.Finally, this paper attempts to put forward some policy suggestions to promote the development of regional life insurance, in order to play a good role in promoting the healthy development of China’s economy:Government departments should conduct propaganda through various channels, such as the social responsibility undertook by insurance, the insurance supervision and administration work to strengthen the consumers’insurance education. Insurance company can organize a variety of activities such as seminars, conferences to understand customer’s real idea, clear product positioning and sales strategy, system, gradually establish differentiated products to meet customer needs. |
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