Analysis On The Influencing Factors Of Investment Life Insurance Demand Of Urban Residents

Since the reform and opening up,China's economy has been developed rapidly,residents' living quality and income significantly improved.However,when residents choose financial management productions are still focused on bank deposits,which caused investors can not combine risk diversification and higher benefits at the same time.So that how to choose appropriate financial products in daily life and allocate funds scientifically and rationally to improve income are urgent problems need to be solved.Insurance as one of the three major financial industries just developed about 30 years from the restoration,investment-based life insurance as a new insurance financial product developed only 10 years,its popularity is on the bottle.However the investment life insurance developed rapidly when first entered into the domestic market in 2001,its annual premium income grew from 42 billion yuan to more than 650 billion yuan and the scale grew more than 15 times,the average annual growth rate is higher than 20%,far beyond our economic growth rate.There are more than 100 insurance companies and varieties of investment life insurance products which characteristics are not nearly the same.So to study which factors affect the urban residents' investment willingness and investment amount is important to promote the development of investment-based life insurance.In this paper,we take Suzhou as the sample area and then to analyzes the.influencing factors of the investment life insurance market through the field questionnaire survey of urban residents.First of all,this paper reviewed the domestic and foreign investment life insurance related literature,selected corresponding variables as the basis of this study after reorganized the existing research,and then analyzed Suzhou investment-based life insurance market development status:(1)Suzhou Urban residents per capital income,GDP and investment-based life insurance premium income is relatively consistent,per capital income,GDP and premium income doubled in nearly eight years;(2)investment-based life insurance market main suppliers' number increased year by year,from 24 to 41,at the same time through detail analysis found that the top five main suppliers accounted for more than 75%of the market share,there is a large market monopoly;(3)Investment-based life insurance market structure is lack of balance,starting from 2011,dividend insurance market accounted for more than 99%,investment-linked insurance and general insurance are less than 1%.Secondly,through the empirical analysis of the data of investment life insurance:(1)Through the logit model,the empirical analysis of the investment willingness of investment life insurance shows that gender,education,investors' position,income,annual payment premium and product yield have a positive effect,and age,risk appetite,whether to understand the investment-based life insurance and the product minimum investment have a reverse impact,which to be mentioned is that per capital income and product yield have a greater impact on investment willingness,so increasing the income and products yield are the fundamental way to promote residents to invest.(2)Further through empirical analysis of products investment quota by OLS multiple regression model found that gender,education level,investors' position,personal income,product yield and product minimum investment limit have positive impact on product investment quota,while age,financial substitution and whether understand investment-based life insurance have reverse effect.In addition,we found that gender,education level,income,financial substitution rate,whether to understand the investment life insurance,product yield and products minnimum investment limit have a greater impact on investment quota,we can see that these variables are most important factors to affect people's willingness to investment quota.Finally,based on the above research results,this paper puts forward the corresponding policy suggestions to the government,the insurance companies and investors in order to promote the good development of the investment life insurance market:(1)The government should promote the innovation of the reform system and improve the vitality of the industry;carry out the living policy and raise the level of per capital income;enhanceinsurance propaganda and improve the level of insurance popularity.(2)The insurance company should optimize the insurance business structure and achieve a balanced development of the insurance products;to improve the products rate of return under the premise of stable operating conditions;set the appropriate products minimum investment limit and then to improve products market demand.(3)Investors should strengthen their learning ability,eliminate the wrong conceptions;optimize the investment structure,improve the investment return rate.