Research On The Impact Of Insurance Supervision On Life Insurance Premium Income

As an important segment of the financial industry,insurance has inherent fragility.Relying on the prosperity and development of the market economic system,it still inevitably encounters market failures,which determines the necessity of government agencies to intervene in the insurance industry.Looking back at the development history of our country’s insurance industry,the concepts followed and the measures taken by the governmental agencies at different stages are obviously different,and the market supply and demand also produce corresponding feedbacks.The transition from a planned economy to a market economy has accelerated the development of insurance supervision from a highly centralized government to the establishment of a supervision system.Especially since 2008,the independence,professionalism and initiative of supervision have been significantly improved.By March 2018,the China Banking Regulatory Commission and the China Insurance Regulatory Commission have merged to supervise the banking and insurance industries in a unified manner,which means that the "separate supervision" pattern established at the end of the 20th century is accelerating its transformation into "mixed industry supervision",establishing unified financial supervision standards for microprudential supervision at the market level.However,after the reorganization,the resource investment and administrative attention of the insurance industry may be reduced,which will profoundly impact on the future development and layout of insurance market microsubjects and international capital.Therefore,how can the regulatory authorities implement precise policies,improve overall efficiency and avoid waste of regulatory resources has become an important issue.Based on this,the thesis focuses on the impact of insurance regulatory trends on life insurance premium income during the period from 2008 to 2021.Subdividing the regulatory process into a period of strengthened supervision after the financial crisis,a period of deregulation of financial liberalization,and a period of mixed-industry supervision under strict supervision,these supervision policies are firstly classified into two categories:supervision strengthening and encouraging development,and then they are divided into macro-financial environment regulation,multi-department joint supervision,and the industry’s own institutional norms,according to the level of supervision subjects.Finally,relying on the "three-pillar" framework of the modern insurance supervision system,the industry policies are further subdivided into five categories: insurance sales,product development,capital utilization,corporate governance and solvency.An event analysis model is established,and the various regulatory policies classified above are used as explanatory variables.The explained variable is the monthly growth rate of national life insurance premiums.The data from January 2008 to May 2021 are selected to verify whether the regulatory policies affect life insurance premium income and differences in the impact of different types of policy instruments.Then,the robustness test is carried out by shortening the window period and replacing the explanatory variable with the monthly increase in number of police.Finally,using the aging degree and life insurance density of each city as the grouping conditions,it discusses whether different heterogeneity factors promote or delay the impact of regulatory policies on life insurance premium income.Through quantitative analysis,this thesis draws the following conclusions: First,in terms of industry supervision,life insurance premiums respond more strongly to normative policies,and there are differences in the impact of specific policy tools under the guidance of different supervision purposes.Then,in the joint supervision of multiple departments,the response of life insurance premium income is rapid,as well as the persistence is poor.In addition,among the macro market policies,the normative category affects the premium income at a higher level.Finally,heterogeneity analysis finds that city groups with higher life insurance depth rankings are more sensitive to incentive signals.Therefore,this thesis puts forward corresponding suggestions: first,determine suitable regulatory objectives and establish correct regulatory concepts.Second,in the process of specific management,decisions should be made by camera and precise measures.Third,establish sustainable cooperative relations among multiple regulatory departments.Finally,the positive policy orientation should be more stable,as well as the stable normal regulation should be more active.