The Influence Of Market Structure On The Scale Of Life Insurance Market In China

At the end of December,2017,China’s life insurance premium income reached 214.557 billion yuan,an increase of 23.0%compared with the previous year,and the average life insurance premium income was 1543.57 yuan,up 22.39%year-on-year.However,in the process of high speed development,China’s life insurance industry has problems such as strong market monopoly and unreasonable market structure.The development of Chinese insurance industry "twelfth five-year" plan for "fully illustrates the structure of the development of insurance market of our country insurance market in China,the importance of market structure as a bridge that crosses from the supply and demand,from two aspects of supply and demand to influence the life insurance market scale.Therefore,this paper tries to study the influence direction of life insurance market structure on the life insurance market size,and has certain practical significance to the optimization of life insurance market structure and the expansion of market scale.In view of the life insurance market,based on the panel date of 2006 to 2015 in 31 provinces and cities,this article analysis the influence of life insurance market structure on the size of market.The study found that Chinese life insurance market structure is still in the form of oligopolistic,although over the years the regional CR8 index value in different degree is reduced,but the region CR8 index value of the life insurance market,such as Inner Mongolia,Ningxia,Qinghai,Yunnan,Guizhou and Fujian,are still above 0.85 in 2015.The value of the CR8 index indicates that most areas of life insurance market is of oligopolistic type Ⅱ and above,showing strong monopolistic properties.According to HHI index,Beijing,Shanghai,Liaoning and other provinces and cities to form the type I market competition,most is oligopolistic model,and to 2015 Tibetan areas for high oligopolistic market,but the data showed that HHI index in the obvious downward path.Through the data statistics,the number of life insurance market in each region is increasing continuously,which also indicates that the competition degree of life insurance market in China is increasing.By establishing the panel data model,the empirical results show that our country’s life insurance market competition enhancement effect on the size of the life insurance market in China is not monotonous,but present inverted U type.That is,when the life insurance market is less competitive,the increase in the competition degree of the life insurance market is positive to the scale of the life insurance market,which will promote the expansion of the life insurance market scale,but when the level of competition reaches a certain value,the increase of the competition degree will suppress the scale of the life insurance market.This means that in order to accelerate the development of life insurance market,it is necessary to support policy-based insurance institutions and try to introduce foreign institutions to promote the competition of life insurance market.However,in the development of life insurance market,the development of life insurance market should be monitored in real time,and the insurance market in China is on the path of efficient and healthy development through the adjustment of policies and market itself.Therefore,both for our understanding of the development of life insurance in our country and for the future development direction of our life insurance market,this paper has important practical significance.