The Research On Factors Of Life Insurance Demand In Jiangsu Province

In recent years,the economy of Jiangsu Province has developed rapidly and people’s living standards have been greatly improved.Insurance of Jiangsu Province has been booming,especially the life insurance,which has been the important growth point of area economy,since insurance recovered in the nationwide in the 1980s.In 2018,surpassing Guangdong Province,Jiangsu Province became the largest area of life insurance premium income in China.Although the life insurance of Jiangsu Province achieve an advanced level in China,it meets negative growth and presents a lower life insurance density and life insurance depth.The life insurance of Jiangsu Province needs an urgent transformation in marketing channel.It is extremely necessary to study the factors to the demand for life insurance and find a new way of success.On the basis of an over view of the concepts of life insurance,life insurance demand,summarizing representative research theories and related literature reviews home and abroad,and the paper firstly introduces the market of Jiangsu Province,including various cities.Next,from the four aspects of macroeconomic variables,social system factors,total population and micro factors,the paper conducts an in-depth theoretical analysis of the factors affecting life insurance demand.Three key factors are extracted as explanatory variables:per capita disposable income,interest rate and education level.Furthermore,based on panel data,the paper establishes empirical model on life insurance density and other factors with static and dynamic differential GMM estimation and obtains the conclusions.The demand for life insurance in Jiangsu Province is positively affected by the premium income of the previous year,per capita disposable income and education level and is negatively affected by interest rate.Among them,education level has a greater impact on the demand for life insurance.The empirical analysis of the influencing factors of demand for life insurance in Jiangsu Province is completed.At last,on account of the research results,considering the current development of Jiangsu Province,several policy recommendations are proposed from the three levels of local government,supervisory authority and insurance companies to face the future development of the life insurance market.