Study On The Contribution Of Development Of Insurance Industry To The Economic Growth In Chongqing

Since China resumed the insurance business in the 1980 s, security role played by China insurance Industry in all fields of people’s life is more and more important. Since Chongqing became a municipality in 1997,the macro economy has been developing rapidly, the whole economic strength has markedly increased, the income level of urban and rural residents has been rising continually. Meanwhile with its own efforts and support of government the insurance asset scale is expanding fast, the fields of insurance service is get wide,insurance risk compensation function has been brought into full play, the residents? insurance awareness grows unceasingly. The insurance industry as an emerging industry, its growth rate is higher than the overall growth rate of the national economy, its effect also increased between the various departments. But there are still many problems and limitations in the developing process. Therefore researching current situation of the development of Chongqing insurance industry and the level of contribution to economic growth can contribute to the discovery of Chongqing insurance limitations,to further promote development of the insurance industry in Chongqing City in order to further promote the development of Chongqing insurance industry, countermeasures and suggestions to improve the degree of contribution, so as to better serve the overall situation of the economy sustainable development of Chongqing City.This paper first analyzes the current situation of the development of Chongqing insurance industry and economic growth finding out that there is still a gap in the insurance scale and the contribution to total economic growth compared with domestic developed cities.Then it does an analysis of the mechanism of the development of the insurance industry’s contribution to economic growth. Finally based on micro data of Chongqing’s insurance industry and macro data of the economy from 1997 to 2013 it establishes the VAR model,inspects the relationship with macro economy by choosing development index from the scale, structure and compensation rate, analyzes the dynamic contribution to macroeconomic development of the insurance development index through the pulse effects and Dynamic analysis of variance and also does an empirical test of contribution of the insurance industry on promoting channels such as consumption, investment, exports and employment and so on from the insurance industry overall in order to put forward policy recommendations to promote economic growth from the point of developing the insurance industry.This study found that:(1) The overall strength of the insurance industry in Chongqing is growing, but compared with the developed cities in China the popularity of insurance products is not high, the structure is single, insurance market is highly concentrated, competition is not sufficient, development is uneven. The phenomenon that government regulation is not reasonable is still widespread. The insurance industry of Chongqing still has great potential on the contribution to economic growth.(2) the theoretical study shows the development of the insurance industry can be presented by the insurance scale, structure and the compensation rate.The development of the insurance industry can theoretically promote economic growth through its function such as promoting consumption, investment, exports and employment to make contributions to the macro economy(3) The empirical study found that there is a long-term equilibrium relationship between the development of the insurance industry and economic growth. The development of the insurance industry’s contribution to economic growth is mainly through the scale of insurance to achieve, and it is permanent, but the contribution ability of the insurance structure and the compensation rate is insufficient. The effect of the insurance industry on consumption and investment in the four channels is significant, it can effectively promote the development of consumption and investment. But promotion effect on export and employment is not strong, and there is a lag.Finally, according to the above research conclusions, this article from the macro and micro level respectively puts forward the following countermeasures: from the macro level, the government should strengthen supporting effort and relax supervision of the insurance industry appropriately and develop economy and improve income level of residents to create a good environment for the development of the insurance industry; from the micro level the insurance companies should strengthen product innovation and enhance their own competitiveness and strengthen the cultivation of insurance professionals.