Research On The Effect Factors Of Business Development Of Insurance Brokers In China Based On Hierarchical Cluster

In recent years,the CIRC has been committed to clarify and rectify the insurance professional intermediaries market.The separation of production and marketing is future trend of development and insurance brokers play an important role.After more than ten years of development,the number of insurance brokers has became 499.Service location change from Beijing,Shanghai and Guangzhou to almost the whole China.It's obvious that the development trend is fast.However,insurance brokerage institutions face the defects of "small,scattered and disorder",which makes the development of insurance industry not optimistic.Industry monopoly,talent gap,professional technology and brand & service are the main issues.In order to break the development obstacle,researchs on elevating the level of insurance brokers become hot.What's more,insurance brokers' business development shows hug gap between different regions.This article will focus on the main factors influencing the insurance brokers' premium income of different regions during recent years.This paper focus on the insurance brokers' panel data of 34 regions in 2014-2018 that authorized by CIRC.To figure out the factors what may influence the premium income,the process are as follows.First of all,use Analytic Hierarchy Process to select main factors and determine the weight of coefficient to select variables for regression model.Then,build the fixed effects and random effects for panel data,and determines a more suitable model to analyse empirical results.Finally,Hierarchical Cluster Model of 34 regions gets three categories.Adding the fixed effects model,it gets entity regression and three categories respectively.Using regional classification results verifies the fixed effects empirical results.The research shows that insurance brokers' employee number,institution number,premium of insurance agency and premium of each region are the key factors effecting insurance brokers' premium.Making the above issues better will boom the development of insurance brokers.Different to previous study,it finds that number of agent institutions makes significant impact on insurance brokers' premium.While number of insurance professional intermediaries and high degree of monopoly have reverse effect.Besides,Hierarchical Cluster Model of multi-index proves that the regions can be classified to three categories and first two have higher fit degree.It proves regional differences and finds insurance brokers in different regions show different affected factors,then adopt measures suiting local conditions.