Research About Introducing Insurance Corporations With Foreign Capital In Henan Province

With the rapid development of economy,China has become the second biggest insurance market.But the problem of the unbalanced development hasn't been solved all the time.Insurance corporations with foreign capital have strengths such as strong risk control,innovation awareness about products,and paying ability.At the moment,most insurance corporations with foreign capital are based in the eastern coastal areas of China.While in the inland market,there is a lack of branches of the insurance corporations with foreign capital,especially headquarters of them.Henan province has been constructing financial functional region in Zhengdong New District and Central Plains economic region in recent years,and it needs to introduce insurance corporations with foreign capital.The economic aggregate of Henan Province ranks the top.In recent years,it ranks the fifth around the whole country.Meanwhile,there are huge agricultural area and population in Henan Province,but the density and depth of insurance here are far below the average of the country.In 2016,the insurance depth in Henan Province was 3.87%,compared with the 4.16% of the whole country.The insurance density of Henan Province was 1441.53 yuan per person,compared with the national level,which was 2258 yuan per person.Thus,the development potential of the insurance market in Henan Province is huge.However,insurance in Henan started late,and insurance corporations lack experience as well as technological innovation.Besides,the phenomena of homogeneity of insurance design is serious.All those problems led that the demand of developing insurance market in Henan Province cannot be met.If Henan province introduces insurance corporations with foreign capital,the market demand would not only be met,but also the technology and rich developing experience would be brought in Henan Province.Meanwhile,the insurance industry would get new impetus.Based on this and considering site selection of foreign insurance companies,this paper explores the problems that Henan province meets when it introduces insurance corporations with foreign capital.Through analysis,the author finds that the factors that affect the introduce of insurance corporations with foreign capital are economy,society,danger,developing level of the insurance market,and relevant policies.The author uses the comparative analysis approach as well as the method of combining theory and practice,and studies the strengths and weaknesses in introducing insurance corporations with foreign capital of Henan province.The author finds that compared with other provinces and cities,Henan province has great potential such as economic aggregate,the huge insurance market development space.Meanwhile,the author also analyze that the Sichuan introduced the experience of Groupama,with reference to Henan,such as strengthening policy support.However,weaknesses such as low urbanization rate,low income per capita,lack of international insurance talents,and incomplete supportive policy lead negative influences to introducing insurance corporations with foreign capital.Therefore,to improve choosing address and develop environment when Henan province introduces insurance corporations with foreign capital should be an urgent affair.