The Present Analysis Of Reinsurance's Demand And Supply

Reinsurance as the insurance for insurer plays an important role in stabilizing insurer's management and promoting insurance industry's developing healthily.To joins WTO according to Our country Government the pledge,the reinsurance market is the entire China insures in the market to open the degree biggest domain.On the one hand the overseas insurance company hastens to ground China in abundance,the safe market competition is day by day intense;On the other hand,the international reinsurance company lands one after another our country,the supplies main body increase,caused our country's reinsurance market mechanism to have the huge change. China's reinsurance profession faced with the huge challenge.Facing this kind of situation,the establishment tallies insures the market development request the reinsurance market to become very important.The analysis with VAR model and impulse response function from the perspective of external impact shows that farmers'income and premium income are the main factors that influence the demand for reinsurance in China.By demonstration,premium income is plus-corelative with insurer's demand for reinsurance,underwriting profit margin is minus-corelative with property-insurer's,and reinsurance is the necessary of insurers in China.Through analyzing the actuality and trend of insurance market in China,finds the gross premium will continue increasing and average underwriting profit margin will drop.Hereby,gets the conclusion Chinese market demand for reinsurance will be increasing in future.Secondly,through analyzing the factors affecting supply of reinsur ance(number and supply bodies,capacity and policies),the supply of rei nsurance in China is analyzed.The paper finds the quantity of national supply body is limited and the supply ability is also limited by insuffi ciency capital.So increasing quantity of supply body is imperative.But after analyzing the entry barrier,finds that the barrier is high for investors domestic.At last,aiming at the actuality of demandand supply in China,points out four key problems our country should solve in reinsurance market:problem of market structure rationalization,problem of commercial premium outflow,problem of cooperation and competition,the problem of disaster risk dispersing.Referencing from the development of intenrational reinsurance market,the paper gives several suggestions.