China's Insurance Industry Market Structure Study

After twenty years of recoverable development , China insurance industry has finished its preparatory phase, forming a relatively complete independent industry system recently. In nineties, with the extended rapid stable development of national economy and the forming of indemnification system, the internal demand to insurance of the whole society is expanding and insurance industry is accelerating. The gross scale of the insurance market increases continuously. The body of insurance market increases and develops to diversification.But compared to the insurance industry of the developed nations, China insurance industry is still a developing unformed industry. It meets many difficulty and conflict. It mains: firstly, China insurance industry belongs to primitive industry basically. Its scale is not large. The level of development is low. Industry structure is not complete. The development of market is not proportionate. China insurance industry is a monopoly industry. The body of competition is little. The market concentration rate is high. The market competition is not enough. The low efficiency of management from monopoly must shrink the market scale. Secondly, China insurance management bodies' competition is weak. Their capacity of putting money, paying back, returning, innovating, managing is obviously weak. They confront the threat from the foreign insurance departments. Else, that China insurance supervision system is not mature conditions the development of insurance industry seriously.According to the theory of industrial economics we can found the profound reason of former problems is unreasonable insurance market structure. The market structure of insurance industry is the basic factor that decides competition of insurance industrial system. Reasonable insurance market structure is very important to the permanent development.This article aims to analyze the market structure, behaviors and market performance of China insurance industry under the guidance of the Theory of Industrial Structure. It concludes that oligopoly is one of the implicit features of China insurance market, and state-owned property takes the monopoly position in the market. Using the theory of SCP frame, this paper studies the market structure of China insurance industry, founding the profound conflict and reason and lodging the correlative advances.