Research On The Impact Of Population Structure Changes On The Demand For Life Insurance

People are the basic element and basic driving force in the process of social development.Changes in all dimensions of the population structure have profoundly affected economic and social development.As an important part of the financial industry,the insurance industry has an inseparable relationship with the population structure.In the past 40 years,China’s fertility policy has been continuously adjusted,and various indicators of the population structure have undergone tremendous changes.At the same time,China’s life insurance industry has developed rapidly since it resumed operations.In the past two decades,the average annual growth rate of life insurance premiums has remained above 20%,increasing rapidly.In addition,life insurance premium income accounts for more than 50% of total premium income,accounting for half of the insurance industry.There is no doubt that the demand for life insurance products and the development of the life insurance industry are deeply affected by changes in the population structure.This article follows the research ideas of finding problems-combing the literature-summarizing the status quo-empirical analysis-making recommendations,based on panel data from 30 provinces across the country from 2005 to 2018,using a static panel model to study the impact of population structure changes on life insurance demand.Specifically,it includes the following core content: First,sort out relevant literature,summarize the previous research results of scholars to provide a reference for the analysis;second,analyze the development status of China’s life insurance market from the development characteristics and current development environment,and summarize the characteristics and trends of changes in China’s population structure at different levels;Third,comb the life insurance demand theory,analyze the effect of the population structure on the life insurance demand under different classification standards;Fourth,use a static panel data model to conduct an empirical analysis of the impact of changes in China’s population structure on life insurance demand,then,divide the overall sample into economically developed areas and economically underdeveloped areas,examining the heterogeneity of the impact of changesin population structure on the demand for life insurance in regions with different levels of economic development,which is intends to provide more targeted opinions.The main conclusions of this study are: first,the child dependency ratio and the proportion of employees in the secondary industry will significantly inhibit the life insurance demand;the elderly dependency ratio,family size,the proportion of employees in the tertiary industry,the urbanization rate,the GDP per capita,and the level of social security will significantly promote the demand for life insurance;the gender ratio of the population and cultural level have no significant impact on the demand for life insurance.Second,the impact of demographic changes on life insurance demand varies in regions with different levels of economic development.The role of the age structure of the population is strengthened in economically developed areas;the impact of family size and urbanization rate on the demand for life insurance in economically underdeveloped areas is not significant;marriage only shows a significant positive correlation with life insurance demand in economically developed areas.Finally,based on the research conclusions and the actual situation in China,we propose suggestions from the life insurance industry and government policies.