Study On The Property Insurance Concentration Influence On Financial Stability

Since our county resumed insurance business in 1979,the market structure of China's insurance industry has undergone great changes.The business entities in the industry have continued to increase and the level of competition has intensified.In.addition,China will forther accelerate the process of opening up the financial industry,and will relax the conditions for foreign insurance companies to enter the Chinese insurance market,and cancel the requirement of 30 years of operation.This measure is for foreign.insurance companies with business characteristics but insufficient business years to conduct business in China.With the creation of conditions,the number of foreign-invested insurance companies in China's insurance market will continue to increase,and will continue to expand its market share in China's insurance market,further promoting the trend of industry concentration decline.Under the background of strict supervision of the financial industry and the deepening of the openness of the financial industry,this paper uses the operating data of 48 property insurance companies from 2009 to 2017 to study the impact of industrial concentration changes on financial stability and its impact,and Other factors affecting the level of financial stability were analyzed.Because the industry concentration is an endogenous explanatory variable,the instrumental variables are introduced to solve the endogenous problems in the model,and the tool variable panel quartile regression model is constructed to study the changes in the concentration of the property insurance companies at different financial stability levels.Sensitivity differences,trying to more accurately analyze the influencing factors of the financial stability of China's property insurance companies,and proposed different recommendations for companies with different levels of financial stability.This paper studies the relationship between industry concentration and financial stability by using the operating data of 48 property insurance companies from 2009 to 2017 under the background of strict supervision of the financial industry and the deepening of the openness of the financial industry.Other factors of financial stability were analyzed.This paper uses the panel quantile regression method to analyze the data information.Because the industry concentration is an endogenous explanatory variable,the instrumental variables are introduced to solve the endogenous problems in the model,and the property insurance companies with different financial stability levels are concentrated on the industry.The sensitivity difference of degree changes,trying to more accurately analyze the influencing factors of the financial stability of property insurance companies in China,and provide differentiated suggestions for companies with different financial stability levels.The paper consists of six parts.The first part introduces the research background and significance,and then combs the two viewpoints of industrial organization theory in the financial field.Combined with the research results at home and abroad,it is found that both the "concentration stability theory,and the "concentration vulnerability theory" have supporters,and a brief review of previous scholars' research,and finally expounds the innovation of this paper,revealing the inadequacies of this paper.The second part firstly defines the concentration of the explanatory variable industry in this paper and the financial stability of the explanatory variables in this paper,and briefly introduces its measurement method.The third part is a general analysis of the concentration of China's property insurance industry.Combined with'the industry concentration measurement indicators,it is found that the concentration of China's property insurance industry is still at a high level at this stage.The degree of competition in the industry needs to be strengthened.The factors that may affect the financial stability of the property insurance business entities in China were analyzed.The fourth part is the introduction of the main regression method-tool variable panel quantile regression model used in this paper.Starting from the introduction of the quantile model,the advantages of quantile regression compared with mean regression are explained,followed by the panel,The model and parameter estimation of quantile regression and Instrumental Variables Quantile Regression(IVQR)are explained,which leads to the selection of variables and the setting of the model.The fifth part is the empirical analysis of the paper.Firstly,it describes the descriptive statistics of the data source and variables.Secondly,it carries out the endogeneity test on the sample.Finally,it analyzes the empirical results and concludes that it is applicable to the property insurance market in China.The concept of“concentration of vulnerability theory,,and the relationship between the financial stability level of the property and casualty insurance company and the industry concentration degree shows a "U"-Pattern relationship,that is,the business entity with financial stability in the middle position has the most change in industry concentration.Sensitive;the financial stability of the underwriting business is declining toward the degree of change in industry concentration,that is,the business entity with poor financial stability of the underwriting business is most sensitive to changes in industry concentration.The sixth part is a summary of the foll text.Based on the empirical results of the fifth part,it summarizes the factors affecting the financial stability level of property insurance companies,and gives corresponding policy recommendations'to improve the financial management of the main body of property insurance in China.Stability and reduce the risk of bankruptcy.