Research On The Causes And Future Development Of China’s Investment Linked Insurance Market Shrinkage

After the introduction of investment-linked insurance in China,it has gone through a period of prosperity.Today,the development of investment-linked insurance in the market is extremely bleak.The development of investment-linked insurance in foreign countries is very good.However,in China,there are some problems,such as insurer inadequate understanding of the insurance products and sales.Behavior irregularity and malicious competition,imperfect supervision and immature capital market,consumer irrationality and media people’s untrue reports.As a new type of investment-oriented life insurance,investment-linked insurance is an innovative product for the development of life insurance companies.The smooth development of investment-linked insurance can undoubtedly bring a new direction for the development of life insurance companies.However,China’s investment-linked insurance has not matured in the past 20 years or so.On the contrary,in developed countries,investment-linked insurance almost occupies more than 60%of the life insurance market,some even as high as 80%.It has been an important product of life insurance industry,bringing great benefits to insurance companies and contributing a lot to consumer’s investment.Under the background that the development of China’s joint insurance is still in a slump,this paper studies the reasons for the shrinking market share of joint insurance and the development direction that joint insurance can open up the market in China.By sorting out the time sequence of the development of the investment-linked insurance in China and comparing it with other investment-based life insurance,and then comparing the experience of the development of the investment-linked insurance in foreign countries,this paper finds out the problems existing in the development of the investment-linked insurance in China and the reasons for the shrinkage of the market,and makes a quantitative empirical analysis of the reasons for the shrinkage of the investment-linked insurance.After analysis,it is concluded that capital market is the most important factor affecting the contraction of the joint venture insurance market,but the capital market is uncontrollable.Therefore,other factors affecting the joint venture insurance,such as inflation rate,disposable income of urban residents,should be controlled,so that when the capital market is poor,the joint venture insurance can not fall to the bottom,and can be maintained as far as possible.Relatively stable returns.Then,starting with these factors,this paper draws lessons from the experience of foreign joint venture insurance,and puts forward some suggestions on government supervision environment,insurance company governance,consumer concept and so on.