The Optimal Structure Of Life Insurance In China

Life insurance in China has developed rapidly since the year of1982, and its premium income had reached1.0157trillion yuan at the end of Year2012with year-on-year growth of4.48percent. However, there are some problems to be solved:its development level is still low compared with those in the developed countries; the business ideas of life insurance companies need to be changed further, and this industry is still faced with many risks; the long term needs of consumers’ could not be met by the supply of products in the market, which leads to the result that the most of life insurance products are homogeneous and the demands of consumers are dissatisfied. As the life insurance is still in the initial stage, the problem is how to make the optimal insurance products.The structure of life insurance products means the internal composition proportion of life insurance, including the change in amount of the premium income and the proportional relationship. The optimal structure should be adapted to the development of insurance industry, advantageous to the long term needs and meeting the demands of consumers.There are5chapters in the thesis. The brief structure is as follows:Chapter0is introduction, including background, significance, literature review, and research of this article.Chapter1briefly discusses the evolution of life insurance products and its function. Then it analyzes the factors affecting the development of life insurance products and defines the meaning of the life insurance product structure. The optimal product structure requires three conditions:it adapts to the development of life insurance industry; it’s advantageous to the long term needs; it meets demands of consumers.Chapter2researches the development stages and characteristics of life insurance products in China. It analyzes the current situation of life insurance market in China by the amount of the premium income and the variation of proportion. The conclusion is that the structure of life insurance products in China is imbalance.Chapter3reviews of the process of life insurance in the United States and Taiwan. Then it analyzes their present situations and trends of life insurance products. Finally it concludes the revelation worthy to learn.Chapter4points out that the current situation requires to optimize the structure of life insurance products. Then it puts forward the suggestions and analyzes the implementation conditions.The possible innovations are as follows:This thesis defines the meaning of the life insurance product’s structure and sets standards to estimate its rationality.It analyzes the different life insurance markets, concluding that the structure of life insurance products in China is imbalance;It points out that optimizing the structure of life insurance products is a long process. The optimal structure should emphasize the assurance function and the ultimate objective is to get each type in balance.