The Model And Analysis Of Life Insurance Consumption In China

After more than 20 years' rapid development, life insurance industry is playing a more important role now in the Chinese economy, and it's also a basic measure to protect people's life. Life Insurance is called" the Stabilizer of Society".China is a huge potential market for life insurance. As the thorough opening of insurance, there will be a favorable external environment for Life Insurance consumption (LIC). So it is meaningful to do some research on LIC.From the researches and surveys of the predecessors, we can draw much valuable conclusions. However, there is still improvement to be made. All the researches analyzed the relationship between the payment and receipt of consumption instead of combining it with specific goods, especially with life insurance. Look from the point view of theory or practice, the analysis on the life insurance from the angle of consumption is not in a satisfying situation and its value in theory and significance in practice make it a worthy deed to carry out the research.This paper will construct the LIC Model on the basis of traditional consumption theory. Firstly, construct the LIC Model on the assumption that LIC also follows the Permanent Income Theory. Secondly, proof-test the validity of LIC Model, make an improvement according to the analysis of factors. Finally, forecast the LIC in the future five years.The main points of this paper are as follows:The main factors of LIC include former LIC, former income accumulation and the competitive condition in life insurance market. Meanwhile, this model proofs that the present LIC can be interpreted with Life-cycle— permanent income theory.