Study On The Development Of Life Insurance Industrial Organization Based On SCP Model

Since 1982, People's Insurance Company of China handled the first domestic life insurance slip,our life insurance had developed for nearly 30 years. Achieved rapid growth and the premium of life insurance reached nearly hundred billion yuan. It promoted the economic growth and was a good "stabilizer" to share the great risk for society and individuals.But more and more problems appearde in the life insurance's development. This article studied on the development of life insurance industrial organazition of china based on the SCP modle, found the specific problems and proposed the policy recommendations.Through the study on the life insurance's market structure,conduct and performance based on the SCP modle, it proved that the market structure of life insurance was Oligopoly,the products and services lacked of differentiation, had high policy barriers to market entry and withdrawal; in the analysis of market conduct,the market existed improper price competition, the behavier of enterprises merger was not active ,the system of merger was not improved ;in the analysis of market performance, we found the life insurance industry's profitability was not good,the allocative efficiency was low,the large-scale life insurance companies'profitability was better than others,most of the life insurance companies'solvency capability of reimbursement was not equal,the ability of risk's administration was fairly not good, all of these were not good for the long-term development of life insurance industrial organization. By the empirical analysis on market structure and market performance,it proved the factors of p rofitability of life insurance industry were complex, the profitability of life insurance companies mainly reflected by the market share and enterprise size. Based on the reality of life insurance industrial organization's development, it was proposed corresponding policy advice in two sides of the industry and enterprise management. Firstly ,the law and system of merger should be more appropriate and comprehensive, and so to the supervise system of market entry and withdrawal, the supervise on the investment and administration of life insurance's premium should be enhanced, the executive force of superviise on life insurance companies'solvency capability of reimbursement should be enhanced too,and encourage the SME's development to promote effective competition. Secondly,for the life insurance company, the ability of product innovation should be improved ,the companye should get the profit from the product, expand the investment options of life insurance's premium to achieve the capital's professional management .increase the multi-industry trade cooperation to realize the complement each other's advantages,strengthen the human resource and reserve, implement the human resource strategy ,enhance the solvency capability of reimbursement, reduce the administration risk, involve in cooperations between companies, expand the scale of orgnazation, participate in the international market competition actively, etc.