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

Since China resumed the insurance business in the 1980s,security role played by China insurance Industry in all fields of people's life is more and more important.Given the economic characteristics of different provinces in China,the effect of insurance development on economic growth varies.Since Hunan Province resumed the insurance business,the economic strength has enhanced and the income of urban and rural residents has increased.But there are still many problems and limitations in the developing process.In order to clarify these problems,it is essential to study the current situation of the insurance development in Hunan Province and its contribution to economic growth.Based on that,we can also put forward some suggestions on the development of insurance in Hunan Province.This paper first describes how the development of insurance can contribute to economic growth theoretically.Then the current situation of the development of Hunan Province insurance industry and economic growth are analyzed and we find out that the insurance scale and its contribution level to economic growth in Hunan Province is lower than the national average.We also establish the VAR model using microeconomic and macroeconomic data of Hunan Province from 2001 to 2015 to examine the contribution of insurance development to consumption,investment and exports.Finally,policy advice about improving the contribution level of insurance development to economic growth are given.