Insurance Industry Organization In Ningbo Based On SCP Theory

Insurance is not only an important component of the economy but also an important factor to promote the development of economy in Ningbo city, with the continuous development of the economy in Ningbo, insurance also get the opportunity of development. But the development time of Ningbo insurance is so short that there are already some difficulties and problems, just like the difference of products isn't obvious, the innovation so little, the price competition is fierce, and the level of performance in Insurance Corporation is low and so on. At present there are few paper comprehensive analysis industry organization situation of Ningbo insurance according with the SCP paradigm strictly, so this research has certain practical significance.This paper uses the theory of industrial organization as the theoretical basis, and adds some index of market behavior and market performance to continue, employ the analysis method of combination of history and reality, quantitative and qualitative, as well as normative and empirical to study the insurance market structure, behavior and performance in Ningbo as well as the relations of them. Than find that from 2005 to 2008, the monopoly degree of Ningbo insurance market decreased, but market behavior is not improved, market performance even with a certain degree of deterioration. The relationship among structure, behavior and performance is further complicated.At first, it use the index of Market concentration and Product difference degree to researches the market structure, find the monopoly in Ningbo insurance market is high but go to decline in the future. Second, respectively from the angle of enterprise, government and industry associations to analysis the market behavior, find the market behavior in Ningbo insurance is disorder. Third, it uses ROA to measure the profitability and gets that the performance of Insurance Corporation is low, meanwhile it applies the DEA method respectively measure the DEA efficiency of Ningbo property insurance company and life insurance company from 2005 to 2008, find the insurances company also get poor DEA efficiency. At last, it select share as market structure index, ROA as market performance indicators, then made a correlation analysis of them. The conclusion is that there isn't significant or obvious correlation between them in property insurance market but positive correlation in life insurance market. So this paper thinks the effectively way to improve the market performance of Ningbo insurance is to standardize market behavior, improve the degree of market effective competition, , improve industry resources allocation efficiency through the determination of various price and non-price competition strategy and extending industry market scale, then it can achieve the sustainable development of the insurance industry. Meanwhile it considers that in the process of regulates the market behavior, the intervention of government will be very urgent and necessary. Government must pay more attention to market behavior supervision, for example, formulate some policy to guide the decision-making of insurance company and recognize the market order. Each insurance agency ought to strengthen product innovation ability to serve the local economy positively, and combined with the practical to improve insurance organization of market activity by implement differentiation market development strategy. Only by mutual effort of local government and insurance institutions, Ningbo insurance will achieve more healthy development.