The Market Structure Of China’s Commercial Health Insurance And Its Influence On Market Scale

Since 1981,life insurance has recovered,China’s commercial health insurance market body increases,expanding the size of the market,which has achieved remarkable results,but what can’t be denied is that there is still many problems.On the one hand,the development of commercial health insurance in China is unbalanced,which is mainly manifested in the unsound market bodies and uncoordinated development of east and west.On the other hand,the development of commercial health insurance in China is inadequate,and unreasonable market structure affects the satisfaction of demand of consumers.Therefore,it can be said that China’s commercial health insurance is not balanced on one hand,and on the other hand it is inadequate.Based on this,this paper attempts to analyze the relationship between the market structure and market size of China’s commercial health insurance market.First it introduced the commercial health insurance and its market structure,the concept of the size of the market,and then introduces the theory of monopolistic competition,government intervention theory,as well as the supply side reform theory,providing theoretical basis for later analysis,and find the supply side and the inner link of the commercial health insurance reform.Secondly,this paper analyzes the history and current situation of China’s commercial health insurance market structure and market scale development.First,respectively from three indicators :the market concentration,foreign share,specializing share we analyse the process and status of China’s commercial health insurance market structure,thinking that China’s commercial health insurance is low monopolistic Ⅱ type market structure.Secondly,the development of market scale is divided into four stages.The first phase was the pilot phase before 1994;The second stage is the initial stage of development in1994-2002;The third stage is the rapid development stage of 2003-2012;The fourth stage is 2012 to now.In addition,the development characteristics of each stage were introduced,and the market mechanism of commercial health insurance market and the scale line chart were made to observe and analyze the trend of the changes during the period from 1997 to2014.At the same time,from capital scale,regional scale,specializing scale,this paperanalyzed the current situation of the development of commercial health insurance market in China,concluding there are uneven regional development,the problem of shortage of the subjects of foreign capital and specializing share is low in power.Again,in this paper,the influential factors of the Chinese commercial health insurance market structure and the size of the market were analyzed,and the result is that there exists China’s commercial health insurance of product homogeneity,market access barriers is high and bigger company size is needed.For the influential factors of the size of the market,respectively from the market structure,the level of economic development,aging,consumer awareness of insurance,commercial health insurance market density,social medical insurance.Then,this paper analyzes the relationship between the market structure and scale of China’s commercial health insurance market.The conclusion is that there exists an inverted u-shaped relationship between market size and market concentration,that is,excessive competition or excessively low competition is not useful to the expansion of market scale.This paper concluded that China’s commercial health insurance is at a low monopolistic Ⅱ type market structure,the overall concentration decline year by year,foreign investment share is in decline,specializing share is in a rising good momentum.According to the empirical conclusion,comparing to the best concentration rate,China’s market concentration is too low at present,which is the phenomenon of high level of competition,and the phenomenon of uneven development level in cities around the country.The subject of foreign capital has no positive influence on the market size due to its own factors and related policy factors,and the development of the specialized subject has a certain positive effect.Finally,this paper puts forward relevant policy suggestions from three aspects:regulating market competition,optimizing market subject and changing business model.