Research On The Spatial Spillover Effect Of Urbanzation In China On The Development Of Regional Insurance Industry

Since the reform and opening up,China’s urbanization has achieved remarkable results,and the development stage of urbanization has gradually shifted from rapid development to the development stage of centralization,reverse urbanization and evacuation of non-urban core functions.Since the beginning of the "Ninth Five-Year Plan",governments at all levels have made urbanization the focus of local economic construction.With the convening of the 19 th National Congress of the Party,the main social contradictions in our country have changed.This is an inevitable result of the economic development to a new stage.China’s urbanization has also reached a new level,gradually achieving people-oriented,green and environmental protection.1.Sustainable new urbanization development.In the process of new-type urbanization,people’s income levels have increased significantly,and consumption habits have undergone major changes,stimulating the growth of urban insurance consumption.As an important part of risk management and protection of people’s livelihood,the insurance industry plays an irreplaceable and important role in establishing and improving a social fair security system and promoting balanced development.Since the reform of the economic system in 1978,my country’s insurance industry has made rapid progress,and premium income has increased nearly 8 times in 15 years.Although from a macro perspective,my country’s total premium income has grown rapidly,the absolute value level is still low.From a regional perspective,my country’s insurance development shows imbalances and incoordination,and the level of regional urbanization greatly affects the development of the local insurance industry.After combing relevant literature and theories,this paper explores the relationship between urbanization and regional insurance industry in my country through empirical analysis.First of all,this paper analyzes the current situation of urbanization development in my country,and uses the combing of the literature on urbanization development level to extract the index of the ratio of urban population to total population in each region as an indicator to measure the level of urbanization development in each region.Further,this paper analyzes the current development of my country’s insurance industry,conducts research on the two major areas of life insurance and property insurance,and selects insurance density as an evaluation indicator to measure the development level of the insurance industry.Next,based on the relevant data of the insurance industry from 2004 to 2017,this paper analyzes the spatial characteristics of the insurance industry development in30 provinces and cities in China,builds a spatial econometric model to study the spatial spillover effect of urbanization on the development of the insurance industry,according to existing literature The research selects the appropriate index as the control variable of spatial measurement.The regression results of empirical research show that the impact of urbanization on the development of regional insurance industry has a significant promotion effect,both the property insurance and the life insurance industry benefit from the local urbanization development.The results of the spatial spillover effect show that the local life insurance industry is significantly affected by the development of the neighboring urbanization,while the property insurance industry is not significantly affected by the spillover effect.Based on the research results,this paper puts forward reasonable suggestions for the development of the provincial insurance industry,optimizes the rational layout of insurance companies,and develops steadily with the urbanization.