An Empirical Analysis of The Factors Influencing China's Personal Insurance Premium Income

Abstract

This paper presents an in-depth empirical investigation into the determinants of personal insurance premium income in China, scrutinizing the period from 2016 to 2021. Through the application of quantitative analysis methods, the study explores the influence of socio-economic factors such as GDP growth, urbanization rate, social welfare expenditure, per capita disposable income, the aging population, and education levels on the propensity of individuals to purchase personal insurance. Key findings reveal that while economic prosperity and increased social welfare expenditures positively influence personal insurance uptake, demographic shifts towards an aging population and higher educational attainment among the populace exhibit a deterrent effect on insurance consumption. The research contributes to the insurance literature by highlighting the nuanced interplay between economic development, demographic trends, and insurance market dynamics in China. It suggests policy implications for insurance companies and regulators to foster market growth, including the development of innovative insurance products that cater to the evolving needs of a diverse population and the implementation of educational initiatives to raise insurance awareness.