An Empirical Study On Life Insurance Demand Of Xinjiang

As Xinjiang’s life insurance developed rapidly since 1983, it has made a great contribution to capital accumulation, social security participating,enhancing people’s life level and creating employment opportunities. However, Xinjiang’s life insurance shows a slower growth rate recent years. Chances are that there’re some problems to be solved.China’s economics enters the new normal. On 13 th, August, 2014, central government released several opinions about speeding up the development of modern insurance services. It’s a piece of good news. As interest rate marketing gradually, finance assets allocated pluralistically, market risk augmenting, deposit insurance system coming, finance products’ rigid to cash is broken, and the ratio of insurance in family assets allocation is increasing. Investment linked insurance products are popular after investment channels broadened. To some degree, it contributed to Xinjiang’s life insurance development keeping stability in 2014. Xinjiang should take the chance to develop insurance, and systematic study of Xinjiang’s life insurance demand is to be done.Focus on generalized life insurance, which contains life insurance in the narrow sense, accident insurance and health insurance, the train of researching thoughts is as follows. The first part is introduction of related theories. From the comparison with northwestern five provinces, some domestic developed provinces & cities, and countries abroad, Xinjiang’s life insurance development status and problems existing in developing, renewal management, conduct propaganda and minority life insurance are analyzed second. Thirdly, the paper examines specific economic, demographic and social factors that may be identifiable as traits affecting the demand of life insurance. And then based on data from 1983 to 2013, cointegration test finds that disposable personal income, interest rate, inflation rate, average size of family, education level has a long-run equilibrium relationship with Xinjiang life insurance density. Granger causality test shows these factors are life insurance premiums’ Granger Reasons. And based on VAR, impulse response function curves indicate Xinjiang life insurance density’s effects to the above factors. Finally, for the sake of Xinjiang’s life insurance development, the paper makes some suggestions to enhance its demand.