Empirical Study On China's Resident Insurance Demand Action

After insurance operation recovery in china, insurance companies and the govern department in charge have pained much attention to insurance supply, market structure and competition behavior. The more important is that china has removed any remaining barriers that prevent foreign insurance companies from competing in the market. Foreign insurance companies rich in specialty experience began to enter the Chinese market; so insurance companies'competition is very fury at present. Though the rate of return from insurance premiums is larger and larger, the gap on insurance density and insurance between china and the world is still large. Our population takes 25 percentage of the world's population, but our insurance market only accounted for 1.76% of the total amount in global insurance market by2009.http//:www.swisser.com indicts:In the western developed counties, the average premium per person reaches as high as 3000 dollars, and even more, but this number only gets 42 dollars in china. It even falls behind some countries and areas in Asia.All these show the problem of insufficient insurance demand in Chinese insurance market.According to the psychological experiments targeting on the individual consumers of Chinese insurance market, we found that Chinese insurance consumers have Non-rational behavior:ambiguity aversion, obvious overconfidence, as well as anchoring and adjust, that is so called anagogic mental biases when making decision which had been found abroad. Basing on the special environment of China in insurance market and the result of the survey, combining behavior finance theory and how to advance rational behavior of our insurance consumers, we make out maneuverability advice from the followed aspects:insurance company, insurance consumers and policy of our the government.