An Empirical Study On The Impact Of Life Insurance Market Structure On Development Degree

With the advancement of market-oriented reforms,and the original insurance premium income for personal life insurance has increased from 87.209 billion RMB in 1999 to 2674.635 billion RMB in 2017.Achieving rapid growth year after year,the scale of premiums has also leapt to the top in the global market.Judging from the market structure,only China People's Insurance Company monopolized the insurance business at the earliest,and by the end of 2017,China's life insurance companies had already opened 85 businesses.During this period,the main body of the personal insurance market in China gradually increased,and the industry concentration gradually decreased,which means that the structure of the supply side of the personal insurance market has changed.Exploring the evolution trend of supply side structure of China's personal insurance market is conducive to discovering the regularity of market development at specific stages and providing theoretical support for the formulation of market supervision policies.This article takes China's life insurance market as the research object,combines the classical theory of industrial organization,and collects provincial panel data of all regions in China from 2005 to 2016.The interpretation of the personal insurance density is the explanatory variable,and the market concentration is the core explanatory variable.And select the regional economic development level,residents' income,national education level and old-age dependency ratio as control variables,and build a linear regression model on this basis to analyze the relationship between competition and insurance density in the personal insurance market in China.In addition,this article also analyzes the threshold effect between the insurance density and the market concentration index.The market concentration is used as the threshold variable.The corresponding threshold is obtained through the measurement analysis program to illustrate the nonlinear relationship between the two variables.The empirical analysis results show that:Firstly,there is a significant negative correlation between the concentration of insurance market in China and the insurance density.In terms of control variables,in addition to the national level of education,other factors have a positive effect on the growth of insurance density.Secondly,the threshold effect estimation results show that there is a nonlinear relationship between supply-side structure and insurance density in China's personal insurance market.Within different threshold ranges,the effect of changes in market concentration on the insurance density is not consistent.Thirdly,according to the thresholds,different levels of competition areas are divided.It is found that the degree of concentration of personal insurance market in most provinces has undergone a process from high to low,and the mechanism of supply-side structural evolution depends on the increased efficiency of large-scale enterprises.Therefore,based on the above analysis results,it is recommended that regulators moderately relax the market access threshold,promote market competition,and adjust the policy orientation flexibly according to the level of market concentration.For life insurance institutions,they should improve their own operating efficiency and refer to the degree of competition in different regions to implement differentiated business strategies.