China's Insurance Industry Competitive Issues Discussed

The development of insurance in our country is rapid. While comparing with the insurance of the developed country, our insurance is primitive. We must know our insurance market structure clearly, and study the market conduct to find the ways of improving the market performance, and make our insurance more competitive in the world. This is the aim of my thesis.With the SCP theory of Joe Bain and competitive theory of Michael E. Porter, I study our insurance market with normative and positive analysis method. The new insurance in our country' has a history about 25 years. At first, there was only one insurance company PICC in 1979 and now there are about 70 companies in china. The competition is intense although the concentration is still high. The insurance market structure is monopoly oligarch in China. Insurance companies with different scales should take different measures to get more profits and enhance competitiveness. I give some advices to the companies and also suggest the official insurance supervisors improve the level of the supervision.