Research On The Demand Of Life Insurance In China From The Macro And Micro Perspective

The life insurance industry becomes more and more important along with the economic development. It has been more than 30 years since the restoration of our country’s life insurance industry in 1982, during this period, the life insurance industry in China has made certain achievements, but it is still lagging behind the growth of national economy. Such issues as insufficient effective demand have become the “stumbing block” hindering the development of China’s life insurance industry; “Sales problem” has increasingly become one of the most difficult problems for life insurance companies. Under such circumstances, carrying out the theoretical and empirical research about the factors that influence the life insurance in China is of great theoretical and practical significance.Firstly, this paper summarizes and sorts out the domestic and foreign literature about the life insurance demand. Based on the previous research result and according to the corresponding theory of life insurance, the factors that influence the demand of life insurance in China can be summed up as economic, demographic, social and institutional. Qualitative analysis of the relevant sub factors are made accordingly.Secondly, this paper analyses objectively the demand environment of the life insurance in China from the macro perspective and summarizes its current situation and features. Some relevant data in 1990-2014 are used to carry out corresponding empirical analysis through establishing the time series model. The result shows that economic development, the residential savings deposit balance and the elderly dependency ratio have an obvious positive influence on the demand of life insurance in China. While the interest rates, the children’s dependency ratio are in negative correlation with the life insurance demand. Other factors also have a corresponding impact on the life insurance demand, but the impact is not obvious.Thirdly, By using over 8,3000 pieces of effective policy data from an insurance company in China, the paper analyzes the life insurance demand from the micro perspective according to the features of the warranty. Descriptive analysis are carried out first about the traits of the insurer,the insured and the staff of policy sales, and policy amount, premium and sum insured. Then multiple linear regression model is established to carry out regressions on corresponding variables step by step. The result reveals that the diversified traits of the insurer, the insured and the salesman have different impacts on policy and premium of life insurance.Lastly, according to the theoretical discussions and empirical analysis of the previous chapters, some corresponding comments and suggestions are raised from the national and the life insurance Company’s perspective for improving the effective demand of life insurance in China. From the national perspective, we should promote the economic development, improve people’s living standards, strengthen the propaganda of life insurance and enhance people’s awareness of life insurance. From the life insurance company’s perspective, they should step up efforts in the innovation of the product and the construction of sales team, and expand the channel of marketing of life insurance.