Study On Insurance Industrial Organization Of China

Chinese insurance industry has been keeping a forceful increasing tendency since reform and opening to the outside world. Its premium growth rate is close to 30 %, and the annual growth rate of its total assets also reaches 35 % in recent five years. As a new developing market, China's quick rise has aroused great attention in the world insurance. But the competition of Chinese insurance market (CIM) is very deficient, with low performance as well as non-stopped out-of-order and malignant competition. All these problems have weakened Chinese insurance competitiveness seriously. The essential cause that brings these questions is the oligopoly market structure. Taking the canonical analysis on the insurance market structure as the starting point and based on the SCP analytical framework of industrial organization theory, this paper has carried through the theoretical and empirical analysis on CIM structure, behavior and performance, explored the deep cause that led to the dynamic variance of market structure, the nonstandard market behavior and the low performance. Finally, the paper brings forward some feasible proposals with the purpose of providing theoretical basis and reference for optimizing CIM structure, standardizing its behavior and improving its performance.According to industrial organization theory, it is important that market structure should be taken as the logic starting point of the circulation since it determines market behavior and market performance, but there is a two-way interactive relationship between market structure, behavior and performance. The nonstandard market behavior and the low performance caused by the market competition insufficiency, on the contrary, determines the oligopoly market structure. Therefore in China not only the oligopoly market structure can't disappear abruptly in a short time but also will continue for a long period along with the multinational merge of global insurance and continuous emergence of financial magnate. Although the oligopoly market structure has double effect and some certain adaptability with the situation of China, CIM structure evolves violently now, and its model ought to be monopolistic competition in which large and long period present objected small companies live together, and competition coexists with cooperation. However, this variance has no way to come true smoothly only by depending on spontaneous market mechanism, effective organization policies roust be introduced in this process. Finally, the paper puts forward the adjustment direction of our insurance industrial organization policies. Overall speaking, studying on the inherent logical relationship between CIM structure, behavior and performance intensively can not only provide the reference for insurance companies to make their policy strategy but also offer the basis for our government to work out insurance policies and grasp its trend.The paper uses canonical-empirical and qualitative-quantitative analysis methods, takes econometrics and DEA as analytic tools, to verify the relationship among the main bodies of our directed insurance market. From a new point of view, it combines researches on industrial organization theory and insurance theory together, tries to complete and enrich them on theory, and expects to establish the theoretical analysis frame of CIM development and the analytic way to forecast and analyze CIM tendency.