A Study On The Impact Of Insurance Industry On Economic Growth In Zhejiang Province

As an important branch of the financial industry,the insurance industry,together with the securities,banking and trust industries,constitutes the four pillars of the modern financial industry.Its contribution to the development of China's national economy is increasingly significant.Since China resumed the insurance business in 1980 which had been suspended for twenty years,China's insurance industry has made remarkable achievements:the insurance business is growing rapidly,business structure is optimized,economic efficiency increases significantly and the industry strength has enhanced unstoppably.The economy of Zhejiang Province ranks is in the forefront of China,and its insurance industry is also constantly developing.The impact of the development of insurance industry on economic growth in Zhejiang Province is worthy of our study and discussion.This paper studies the impact of the insurance industry on economic growth.Firstly,the paper summarizes the relevant researches at home and abroad.Secondly,it expounds the status of insurance industry and economic growth in Zhejiang Province.Thirdly,based on the relevant theoretical analyses of the impact of insurance on economic growth,it is concluded that the insurance industry can influence economic growth by influencing savings-capital conversion and capital productivity and promote economic growth through consumption,export and investment channels.Then,the paper makes an empirical test on the relationship between premium income and GDP in Zhejiang Province.And through the cointegration test,Granger test and impulse response analysis,it tests the impact of insurance on economic growth from the three paths of consumption,export and investment.It is concluded that the insurance industry in Zhejiang Province is the Granger reason for the overall economic growth of Zhej iang Province.Both the long-term and short-term,the insurance industry has a positive effect on economic growth.Finally,based on the conclusion of theoretical and empirical analyses,Yiwu is chosen as a typical case.Through analyzing the problems existing in the insurance industry under the local economic characteristics,the policy suggestions are proposed as follows:fully understanding the important role of the insurance industry in economic growth;promoting insurance products and services innovation;building a new model of local insurance operations;vigorously promoting the liability insurance and strengthening personnel training.