The Theory On Demand Of Property Insurance Market And Emprical Research

Property insurance plays an very important role for social stability and raising the country's social welfare level and also promoting regional economic development. With the opening of China's property insurance market, the property insurance market in Shandong province of which the competiton becomes increasingly fierce has a rapid growth, and the number of its business entities is also increasing. Since the reinstatement of the property insurance business in shandong province, the insurance premium income is from 2.3 billion yuan in 1987 to 16.42 billion yuan in 2008. However, the depth and desity of property insurance in Shandong province which is 0.44 and 144.33 yuan respectively is relatively low and at the national level they are in the lower middle-class. Therefore, how to seize the characteristics of the demand on the property insurance as well as improving the level of the demand for property insurance on the property insurance are the urgent issues. In addition, how to maximize the demand of property insurance and maintain the market stable is also worthy of study to the government regulatory bodies.This paper with the object of the property insurance market in Shandong province analysis the situation of the demand for property insurance as well as the supply and presents the proposals of a balanced supply and demand for the property insurance development so as to provide reference proposals for the relevant insurance regulatory authorities.The study based on the economic demand theory of the property insurance, through the theoretical explanations of property insurance products, uses the natural logarithm of multiple linear regression model and ARMA time series model to study the demand for property insurance in Shandong province, from which we could find the various demand factors and magnitude of the impact and also the time series and seasonal fluctuation of the dynamic characteristics of the demand for property insurance. In additon, the paper uses multivariate statistical method of cluster to analyse the level of demand for property insurance in Shandong province. Then the paper gives the analysis and evaluation on the supply situation of the property insurance market in Shandong province. Finally, based on the previous empirical analysis, the paper gives the advice to the property insurance company on product development and internal management, and policy recommendations to the insurance regulatory agencies.