Research On The Market Structure Of Chinese Property Insurance Industry : Based On Panzar-Rosse Model

As an important part of the national economy, property insurance industry plays an irreplaceable role in the process of social development, it stables economic and social life and provides a solid security guarantee for economic growth; it coordinates social relations and solves the social problems, promotes the normal operation and orderly development of the society, it is an important symbol of the level of a country’s social stability and economic development level.In recent years, with the improvement of the external business environment and the expansion of the demand for property insurance, Chinese property insurance industry has a good momentum of development, the number of business units to property insurance market has been rising, the market structure has also made great changes. Researching on the market structure of Chinese property insurance industry and putting forward feasible countermeasures and suggestions show important actual meaning: they can make full use of the advantage of market structure, further play the role of property insurance in economic and social development, avoid the disadvantage of market structure and ensure the healthy and stable development of the property insurance industry.There are five chapters in this paper. The first chapter is an introduction, it describes the research background and significance and related international research review; the second chapter is the theoretical basis, it mainly states the competition theory and new empirical industrial organization; the third chapter is the overview of the development of Chinese insurance industry, it systematically introduces Chinese insurance industry from the business entity, business conditions, business performance in three aspects; the fourth chapter is the empirical test of Chinese insurance industry market structure, it takes PR model as a research method in unstructured way, and builds up a model which is fit for Chinese property insurance industry,empirically testing market structure characteristics of Chinese property insurance industry. In this paper, the empirical results show that from 2006 to 2014, Chinese property insurance market is a monopolistic competition structure in general, preference for perfect competition; from the perspective of each year’s H statistics, the degree of property insurance market competition has enhanced unceasingly. The fifth chapter is analysis of the causes of formation of Chinese insurance industry market structure, combining with actual situation, from the two aspects ofexternal causes and internal causes, it analyzes the cause of the structure characteristics of the property insurance market; the sixth chapter is the conclusion and suggestion, it puts forward corresponding suggestions in view of actual problems.