Analysis of Factors Influencing the Development of China's Insurance Industry

Abstract

The insurance industry is closely linked to individual interests and the overall economy of the country. Nowadays, in the context of Covid-9, the stable development of the insurance industry is particularly important. However, much of the literature focuses on the role of the insurance industry in economic development, but there are few studies that focus on the industry in general and analyze the impact factors of the insurance industry itself from multiple perspectives. To fill the academic gap in the overview of the insurance industry and better promote its future development, this paper explores the role of seven factors such as economic growth, inflation, disposable income of the population, and the scale of social security on the development of the insurance industry from three aspects: macro, micro, and China-specific social background conditions. Through a comprehensive analysis of relevant domestic and international literature in recent years, this paper concludes that: economic growth, higher individual disposable income and better legal system and regulation have a positive effect on the development of the insurance industry; inflation inhibits the insurance industry development. The effects of demographics, social security size and residents' education level on Chinas insurance industry are somewhat complicated.