Study On The Degree Of Competition In China's Property Insurance Market And Its Influencing Factors

At present,the pace of opening up the domestic property insurance market to the outside world is speeding up.Foreign investment,joint ventures and emerging insurance companies are coming,which has broken the original monopoly pattern of the market.China encourages moderate competition within the industry,and diversified property insurance service agencies are increasing.Under the background of complex market competition,what kind of competition should China's property insurance market take to consolidate its position,while maintaining stability in the competition and the growth of the national economy are all issues worthy of consideration.Therefore,based on the current degree of property insurance market competition,this thesis explores its influencing factors from all levels,which is helpful to understand the current situation of property insurance market competition scientifically and comprehensively,and is of great significance to enhance the market competitiveness.This thesis reviews the development process and analyzes the current situation of insurance market.It is found that the regional development is unbalanced,the competition in the eastern region is fierce,but the competition in the central and western regions is insufficient;the concentration is high,and the development of small and medium-sized property insurance companies are threatened;the property insurance market is excessively dependent on automobile insurance while other types of insurance is insufficient;with the continuous entry of insurance companies,the competitive environment has changed.Therefore,based on the data of China Insurance Yearbook(2009-2018),this thesis selects 21 property insurance companies as samples,constructs P-R model,selects total income as explanatory variables of competitive test,total asset yield as explanatory variables of balance test,capital cost rate,capital cost rate and personnel cost rate as explanatory variables,and total assets as control variables.The competition degree of property insurance market in China is calculated by fixed effect regression.In order to determine the calculation results,this thesis further uses B-L model to calculate,and verifies the calculation results of the P-R model by multi-step equation fixed effect regression.The results show that: firstly,China's property insurance market is in monopoly competition;secondly,the personnel cost has the greatest impact on the income of property insurance companies,indicating that the competition field of domestic insurance industry is very important for the control of operating cost;thirdly,the competition intensity of large property insurance companies is higher than that of the whole national property insurance industry;fourthly,although large property insurance companies have certain monopoly power,the monopoly power gradually weakens,and the entry of small and medium-sized property insurance companies strengthens the fierce competition in China's property insurance market.Then,this thesis takes the H value of the competition degree of property insurance market as the explanatory variable,and selects the national economic stability and growth,economic growth rate,market concentration,insurance depth,scale of foreign property insurance companies,market capitalization rate and stability as explanatory variables from the macro,industrial and micro perspectives to establish a model,and further studies the influencing factors.The results are as follows: at the macro level,the economic growth rate has a significant impact on the competitiveness of the property insurance industry;at the industry level,the insurance depth has a significant impact on the competitiveness of the property insurance industry;at the micro level,the more stable the property insurance company is,the lower the industry competitiveness is,but its impact on the competitiveness is not significant.The influence of national economic stability and growth,concentration of property insurance market,economic growth rate,scale of foreign property insurance companies and market capitalization rate on the competition degree of property insurance industry is not very clear.There are three main innovations.Firstly,two models are used to calculate the degree of competition in the insurance market,which effectively avoided the fuzziness of the calculation result.Secondly,this thesis focuses on the competition degree of property insurance market,and cross compares the competition degree with that of large,medium and small-sized property insurance companies,which is conducive to comprehensively,scientifically and fully identifying and judging the real level of the competition degree of domestic property insurance industry.Thirdly,in the analysis of the factors affecting the degree of competition,there are few studies on the factors influencing the degree of competition in the property insurance market in the existing literature.In this thesis,the selection of indicators is more comprehensive,which provides ideas and methods for the analysis of the factors affecting the degree of competition in the property insurance market,and puts forward the research direction of the rationality of competition.