Study On The Surrender Of Life Insurance Market And It's Factors

Life insurance market in China is developing rapidly, as well as premium income, particularly in recent years. However, the risk of life insurance market has become increasingly prominent; especially in the area of surrender of life insurance. Surrender rate of China's life insurance market in recent years show rapid upward trend, surrender problem has become an important research area in insurance research area.Basing on China's life insurance market, this article studied on the surrender phenomenon, hoping to find its factors. Firstly, We collected and collated data on Chinese provinces and cities surrender and did regional analysis according to different economic developing level. We hope to get regional characteristics of life insurance surrender phenomenon and then find the internal constraints of insurance surrender action in practice in order to judge the Science and rationality of insurance theory in this area. Secondly, this paper did linear regression analysis to find relationship between surrender rate and GDP in order to find a reasonable explanation on the regional characteristic of surrender. Finally, the paper did empirical analysis on the factors of life insurance surrender phenomenon. In the selection of factors, this paper added the Shanghai Composite index daily returns, which acts as an important index of Substitution effect of financial products, hoping to find the relationship between surrender and substitution effect of financial products in insurance theory.This paper is divided into three parts or six chapters. The first part which contacts chapter 1 as an introduction part, introduced the paper's object the surrender of life insurance market and its factors and related conceptions of life insurance surrender. What's more, this part summarized literatures on life insurance surrender area. They provided the basis for this paper. The second part which acts as an import part has three chapters, which is chapterⅠ, chapterⅢand chapterⅣ. ChapterⅡfocused on the regional analysis on China life insurance market's surrender. ChapterⅢdid regression on GDP per capital in different area and the surrender rate. ChapterⅣdid Time series analysis on rate of life insurance market surrender and each factor using multivariate statistical model and we got multi-factor model which include the Shanghai Composite index rate of return, which is an empirical test on insurance surrender theory. The third part is also chapterⅤ. This part gave conclusions to the whole paper and gave some suggestions on how to reduce surrender in life insurance to life insurance companies.