The Reasearch on the Transaction Cost Institutions of Insurance Industry in China
|Keywords||System Institutional structure - conduct - performance Market Structure Insurance Transaction costs|
In the past 20 years, China is one of the fastest growing insurance markets in the world, and has been engaged in the reform of the financial system, the essence of this reform is the structure of the system changes. Although the system is functioning \The purpose of this paper is to develop the theoretical framework of the system structure (IS) - behavior (C) - Performance (P) \. Article the resource consumption of the insurance transaction costs is defined as the Insured more than actuarially fair premiums will be based on the transaction costs of the insurance contract, accept the rules of the game of the mechanism of the various effects of the insurance transaction behavior is defined as a system of insurance transaction costs, including all official institutional arrangements and informal institutions, the combination with the relationship between the system and is defined as the structure of the system. The article is the first to explore the relationship between the system structure, conduct and performance based on the statement of the underlying assumptions and core concepts. Then study the impact of the system on the evolution of the market structure of the insurance industry, found that the system of China's insurance industry market concentration, entry and exit barriers, the basic elements of firm size and market structure play a decisive role. The next study how the structure of the system have an impact on insurance company performance, empirical results show that the 2005 cross-sectional data: at least 85% of small and medium-sized companies are increasing returns to scale, but a higher market share of several state-owned insurance company and rapid market expansion, the insurance companies are showing diminishing returns, property and casualty insurance, life insurance does not exist in the product-based economies of scope. 2002-2005 mixed cross-sectional data analysis of insurance companies scale efficiency and X-efficiency, and compare the system of underwriting capacity, reinsurance system differences on property and casualty insurance, life insurance industry scale efficiency, X-efficiency: foreign and joint venture insurance company scale efficiency, X efficiency superior to the Chinese insurance companies, and production scale efficiency and X-efficiency of the insurance industry, there are significant system effect, but little life insurance industry. Then test the market structure and performance relationship, property and casualty insurance industry there is evidence to support the MP hypothesis, the life insurance industry support ES hypothesis, but because a decisive role in the system of the market structure, the article will explain this relationship for the institutional structure and efficiency of the relationship; high X-efficiency of insurance companies have a higher probability to participate in the premium rate competition, and also actively participate in the commission competition is different, but the social welfare of the two price competition. The evolution of the transaction costs of the system of the Chinese insurance industry, largely the result of the system design. Finally, some suggestions for the transaction costs of the insurance industry in China Reform.