Empirical Study About The Related Factors Of Life Insurance In Zhejiang Province

With the rapid development of our economy in the past decades, the quality of our lives and consumption level were remarkably improved. Along with economic growth, on one hand, the public investment in education increased, and more consumers began the transition to Maslow’s theory of higher needs in the hierarchy. On the other hand, population structure changed, the aging speed of China is much higher than other countries, old people are more and more, the whole society showed the trend of aging. Over all, "new normal" is the next keynote of development of China, based on the background of an aging population, the economic slowdown, while with the Social Security funding gap, the pressure of younger generation to support the elderly increased significantly.Since human life is the insurance object, life insurance transfers the risk in condition of longevity and death. However, in the sense of experience, through which channel that financial ecological environment affect economic performance is inconclusive, therefore, further research has important academic value.The economic aggregate and economy average in Zhejiang Province are near the top of China, and the development of insurance industry is relatively more complete. Comparing with developed countries, the density and depth of life insurance still remain a large gap. In this paper, we took Zhejiang Province as an example to define the concept and function of life insurance with the background of aging population and economic development, next, introduce demand theory about life insurance. In the end, focusing on Zhejiang economic old-age dependency ratio, we took historical data of various aspects in Zhejiang Province to structure vector autoregression (VAR) model of life insurance demand, and demonstrated the influence factor of life demand insurance. Finally the conclusion was as follows:life insurance demand can be positively affected by disposable personal income and old-age dependency ratio, and negatively affected by average family population size and saving ratio. Among these factors, old-age dependency ratio has more impact on life insurance demand, which conforms to economy theoretical expectation.Innovation of this paper is to narrow the study object to a single province. Combining historical background of aging of population as influence factor to life insurance demand, both theoretical and empirical analyses were discussed through empirical operation of VAR model with historical data of 35 years since 1980 to 2014 in Zhejiang Province.