Investigation Report On The Impact Of Rate Marketization On The Consumption Of Financial Life Insurance Products

Reforms of rate marketization in life insurance have been fully completed, since the three-step strategy that China Insurance Regulatory Commission officially announced to implement the reforms of rate marketization in 2013, to the formal announcement of participating insurance rate marketization in September 2015. There is no relevant study domestically on the influence and extent that reforms of life insurance rate marketization has posed on the consumption of finance-based life insurance products. Therefore, this thesis will analyze the impact of rate marketization policy to the consumption of finance-based life insurance products, and conduct investigation researches based on the perspective of consumers, focusing on the two-year time since the implementation of rate marketization, so as to analyze and summarize conclusions according to the survey findings. This thesis will propose appropriate countermeasures and suggestions based on the research results, hoping to provide a certain data support for the next rate reform of the government.The research is mainly conducted from three aspects. Firstly, investigate consumers’ personal information so as to acquire their basic comprehend of the impact of rate marketization policy. Secondly, obtain the quantity changes of life finance-based insurance products that consumers purchase and the expectation of current market change, after the implementation of rate marketization reform. Through the feedbacks of consumer on the consumption changes in finance-based life insurance products consumption, it can indicate the impact of rate marketization to some extent. Lastly, investigate into the impact of rate marketization policy to the market development of finance-based life insurance, which is mainly conducted from several aspects: an overall influence on the financial life insurance market, competitive changes among insurance companies, future concentration of consumers on the finance-based life insurance products, etc. The survey respondents consist of consumers from four major cities: Beijing, Shanghai, Guangzhou, and Shenzhen,including employees of the insurance industry; and the respondents are aged above 18 years. In addition, this research will carry out paper questionnaire particularly towards the senior citizens.According to the research results and empirical analysis, this thesis comes to the following conclusions. In the first part of the research, except for the unremarkable influence of gender, the factors of age, education, individual and family incomes as well as marital status have various degrees of impact on their comprehension of rate marketization policy. Wherein, the influence of age proves to be the most significant. Results of thesecond part reveals that after the implementation of rate marketization, consumers have more remarkable recognition of increased cost-effective products, richer product varieties and improved risk protection of products; yet, they show less significant recognition on the quantity of purchase. Results of the third part indicate that, under the influence of rate marketization, consumers’ future choices for financial management modes will more focus on finance-based life insurance products; and most of them maintain agreeable attitudes with the current reform of rate marketization.Finally, according to the research results, combined with the current status of Chinese insurance industry, this thesis will propose corresponding recommendations and countermeasures for improvement from three different subjects: supervision department,insurance companies and consumers.