The Economic Analysis Of SMEs' Demand For Insurance

The SMEs have developed rapidly recently. They have become not only the important force to support the growth of the national economy, but also the main channel to absorb the employment, and they also have facilitated the reform of the market economy. Although the SMEs have taken an important place in the national economy, their risk protections of property are poor. The insuring rate of the SMEs is only about 10%, mismatching their status in the economic society seriously. This thesis tries to analyze the reasons of the low insuring rate from the side of the demand for insurance, and advise some ways and means to increase the demand for insurance of SMEs.There are two factors influencing demand for insurance, first the insurance awareness and second the ability to buy insurance. Nowadays in our country, although the SMEs develop rapidly, most of them are managed badly, the poor abilities to payoff and financing lead to the poor ability to buy insurance; On the other hand, although some SMEs have the ability to buy insurance, the owners' mentality of regret-aversion leads to weak insurance awareness. In the situation of poor ability to buy insurance and weak insurance awareness, the demand for insurance of SMEs represents lowly.We first analyze the characters of the property risks and the demand for insurance of the SMEs, pointing out how managerial environments influence the demand for insurance, and contrast the SMEs' and the personal demand for insurance. Then we show the reasons for the low demand for insurance, using two models in the view of the ability to buy insurance and the insurance awareness respectively. At the end of the thesis we advise some means to increase the demand for insurance of SMEs.