An Empirical Analysis Of The Relations Between Chinese Life Insurance, Property Insurance And Economic Growth

Since the reofrm and opening up, China’s insurance industry has madegreat progress. From2012data, China’s annual gross premium income of1.548793trillion RMB, ranked No.4，the highest ranking in history. At the same time，China’stotal GDP has surpassed Japan to become the world’s second largest economy.However, the insurance industry, there are still some problems. On the one hand, thehuge size of the total premium income in stark contrast to China’s insurance depth andinsurance density is still low，the data show that in2012the Chinese mainland market,the insurance penetration was2.96%and insurance density was178.9U.S. dollars percapita, ranking global ranking section46and section61; hand, different nature of lifeand non-life insuarnce business resulted in China’s life insurance industry and thedevelopment of no n-life insurance industry is difefrent, the analysis showed that thecountry’s total premium income in2001and2012the growth rate of6.06%, whichnon-life premium income growth rate of6.45%, while life insurance premium incomegrew by only5.8%, while life insurance premium income in some years has droppedslightly compared to the non-life insurance premium income has shown growth. Innumerous studies of Chi’nas insurance industry and economic growth in the literature,I think the insurance industry will be divided into life and non-life insurance, whichuse panel data to study Chinese provinces are relatively new subject.This paper argues that studies the relationship between the Chinese life insuranceand non-life insurance industry and economic growth has important theoretical andpractical significance. First, for the method is concerned, this paper Chinese provincesinsurance, non-life insurance industry and economic growth based on panel data, theamount of data compared to the previous literature is more comprehensive anddetailed, and we will follow total premium income of life insurance and non-liefinsurance industry trade fine points, making analysis more rigorous and specific, andmore targeted; secondly，from the research point of view，this in-depth study of therelationship between the subject of the insurance industry and economic growth,unlike previous studies unilateral, single direction, but direction of the positive andnegative aspects of the empirical analysis, compared with the past morecomprehensive and detailed. Finally, the subject of the selected municipalities paneldata are the latest data, obtained through a lot of consolidation, improving the previous studies in the literature that may exist on the data usage bias and mistakes,making analysis of this topic richer timeliness characteristics. Practical value of thispaper is: panel data through the use of Chinese provinces and cities, and thedistinction between the life insurance industry and non-life insurance industry, toveriyf the "relatbnship between theory-based Institute of Economic Growth ininsurance industry and the proposed ofur hypothesis, on this basis, it is our countrysituation facing the insurance industry and the economic development and futuretrends to explain and application analysis.This study is divided into the insurance industry to promote economic growthand economic growth efefcts caused by the effect of the two parts of the insurancerequirements, Chinese life insurance, non-life insurance industry and economicgrowth based on panel data ofr the study, the basic model used including the classicregression model and error correction model panel data. The main conclusions are:more economically developed regions, life insurance and non-life insurance industryin the development of the impact on economic growth, the greater the presence ofcounteraction between the three; promote life insurance and non-life insurance sectorofr economic development different roles, promoting the role of non-lief insuranceindustry to the economy but also reflects a long-term relationship, and the lifeinsurance industry ’s role in promoting the economy of more shows to promoteshort-term relationship; low-and high-income areas, stimulating effect on economicgrowth in the relative demand ofr insurance low and middle-income regionaleconomic growth stimulating effect on insurance demand is relatively high, that is,economic growth stimulating efefct on the demand ofr insurance was "invertedU-shaped" relationship; role in boosting economic growth is higher than ofr non-liefinsurance business life insurance business, and atfer entering the middle-income levelthis feature is more pronounced. Finally, the research paper also efr from a perfectdegree, I hope to keep the ofllow-up study to deepen the relationship between Chinaand improve the life and non-lief insurance industry and economic growth inunderstand ing.