An empirical analysis of the factors affecting the market demand - Auto Insurance in Northeast China as an example
|School||Zhejiang Technology and Business University|
|Keywords||Auto insurance demand factor panel data premiumincome|
The auto industry has been always taken as one of the pillar industries of national economy for its strong connected effect and also for the adsorption of high and new technology. Meanwhile, it is seen as a sign of the overall level of national manufacturing and even as an embodiment of one country’s comprehensive strength. Sustained and healthy development of the auto industry needs powerful support the insurance industry provides. Auto insurance, as predominant insurance of the property insurance, is of great significance to the business development of the property insurance company and to the healthy development of the whole property insurance. At the same time, since the auto insurance has been gaining prompt development with its premium income growing rapidly, system analysis of factors which affect the demand of auto insurance is of great scientific and practical importance. For now, many scholars mainly focus on the theoretical research and hardly on the empirical research which is limited to nationwide. Therefore, this paper empirically analyses the correlative factors which influence the demand of the auto insurance in three areas of east China (Zhejiang, Shanghai, Jiangsu), using the basic theory of insurance and econometric analysis methods, combining the analysis of empirical data from2000to2012. Firstly, this paper describes the national car insurance market and the present situation of the auto insurance market in the three areas of east China and then gives systematically comparison. Secondly, the empirical research indicates that some factors such as the auto insurance price, income level, number of civil motor vehicles and road traffic accidents, per capita road area exert obvious effects on renewing the auto insurance. Finally, relevant suggestions will be put forward to insurance operators.