Corporate insurance market in the People’s Republic of China: some macro and micro perspectives

Abstract

This paper analyses the development, regulation and future trend of the corporate insurance market in the People’s Republic of China (PRC). Using data for 212 Chinese listed companies over the period 1997‐99, this study provides some preliminary empirical evidence regarding the property insuring behaviour of Chinese companies. I find that the level of property insurance spending in Chinese companies is inversely related to company size and leverage. Additionally, the purchase of property insurance appears to vary according to geographical location and industry sectors. However, foreign ownership does not appear to have important influences on the managerial property insurance decisions in the Chinese corporate sector. The findings of this study could thus have important implications for various groups (e.g., corporate lenders and foreign insurers) that are interested in the Chinese corporate sector and insurance markets.