The Empirical Analysis on China’s Demand of Motor Vehicle Insurance and Its Influencing Factors
|Keywords||Premium Demand of Motor vehicle Panel data|
China’s rapid develop ment o f economic and the incredib le growing of Motorvehic le markets, pro mote the prosperity of the auto ins urance market. Through tenyears rapid develop ment, the vehic le ins urance gradua lly become the role pla y ofproperty ins urance, the premium fro m vehic le insura nce has become major sourceof property ins urance company.In March2012, China promulgated the newregulations o f the ins urance, for the first time foreign ins urance companie s will beallowed to operate the vehic le insurance bus iness, domestic insura nce companieswill compete with foreign insurance companies in vehicle insurance.By economics demand theory, in the bais is of the ana lys is about the characteristicof vehic le ins urance and other academic achie ve ments, i ana lys is the factors influencethe demand through q uantitative ana lys is and qua litative ana lys is, and fina ly findthese factors contain three category bellow:1.Economic category: inco me, vehic lemarket, cost of driving, traffic dens ity, labor force, hous ing/car2.Politica l category:urbanizatio n policy, rates of vehic le insurance marketization,compulsory vehic leinsura nce, vehic le ins urance new ord ina nce in2012.3. socia l category: education,culture, geography. In whic h income, car sales, labor, auto/hous ing, urbanizationhave significant positive correlatio n with dema nd of vehic le insura nce.Trafficdens ity,cost of driving， ins urance prices have s ignifica nts negative correlationwith demand of vehic le ins urance. Education has a weak positive correlatio n withdema nd of ve hic le insura nce. As a result o f the fact that China’s urbanization polic yand the direction in which the economic deve lope, the continuous increasing o fChina’s vehic le consumption a nd the reform measures in ve hic le insurancemarket,dema nd of vehic le ins urance will continue to increase. Insura nce companiesshould make good use of the opportunity that gradua lly vehic le ins urance informationsharing platform hasbeen establis hed,they sho uld es tablis h worked vehic le insuranceactuaria l pric ing mecha nis m and product new ve hicle insura nce to meet demand ofmore people own ve hic le, and gradua lly increase investment in vehic le insuranceactuaria l departme nt, seize new growing opportunities, fully p repared for futurecompetition.