| China has recognized the urgency and importance of financial system reform since the financial crisis in 2008.In recent years,China’s insurance industry has a significant impact on China’s capital market both in terms of insurance scale and economic effect.As China continues to open up financial markets,foreign insurance companies in China have made great progress,the impact of foreign insurance companies to China’s insurance market continued to expand.Foreign investments,whether in the form of corporate entities into the Chinese insurance market,or in the way of insurance capital into the Chinese insurance market,the existence of these phenomena are that the impact of foreign insurance China’s insurance market continues to strengthen.This paper from the Chinese insurance market structure to study the foreign insurance companies into the Chinese insurance market to bring the market competition effect.In this paper,the Panzar-Rosse model is used to calculate the market competition degree statistics of China’s property insurance market and life insurance market from 2004 to 2015,and then through empirical analysis of foreign insurance companies to enter the Chinese insurance market to bring the competitive effect.The empirical results show that:(1)After the foreign investments enter the Chinese insurance market,the changes of the market competition degree between China’s property insurance market and life insurance market from 2004 to 2015 are very different.The competitiveness of the property insurance market is stronger than the life insurance market,and the competition degree of the life insurance market is much larger.(2)At present,the Chinese insurance market,both the property insurance market and the life insurance market,are affected by the competitive effect brought by the foreign insurance,but the overall impact is not large.(3)China’s property insurance market and life insurance market,the top four companies share CR4(Property insurance: PICC Property,Pacific Property Insurance,Ping An Property and Casualty,China Union;Life Insurance: China Life Insurance,Ping An Life Insurance,Pacific Life Insurance,Xinhua Life Insurance)and market competition degree H are inversely proportional to,and life insurance market CR4 impact coefficient of absolute value is much larger than the property insurance.(4)The market stability(IIt)and the market competition degree of China’s life insurance market are weakly related to the market competition degree,and the market stability degree(IIt)and market competition degree of China’s life insurance market are very weak Negative correlation.According to the research results,this paper gives the relevant policy recommendations:(1)adhere to market structure reform,Differentiated treatment of China’s property insurance market and China’s life insurance market;(2)introduce large-scale,strong foreign insurance companies;(3)Correctly guide foreign insurance companies to enter the Chinese insurance market;(4)Strengthen the insurance industry innovation ability,enhance the competitiveness of local insurance companies. |
