An Examination of Product Structure and Efficiency within the Property Insurance Industry in China

  •  Chenxi Li    
  •  Gaiqin Hu    
  •  J. Tim Query    


The property insurance industry in China has achieved rapid growth since 1980s. However, further growth and development has been restricted for several reasons. While there are a variety of property insurance products, the product portfolio is unbalanced. Also, the early stages of these products are too simple to meet the diverse requirements of policyholders. Finally, certain products of different companies are somewhat duplicative. Based on the Structure Conduct Performance (SCP) analytical framework, the research paper analyzes various management index indicators and market competitive behaviors of China’s property insurance market in recent years.

Utilizing germane data to perform an empirical study model, this paper elaborates on the importance of product structure on the property insurance market and proposes related measurements of practical and theoretical significance. These include the delicate management of the auto insurance business, expansion of the non-automobile property business, etc. The paper also provides suggestions on improving the current business structure, increasing the industry’s probability of profitability, lowering management risk, strengthening the competitiveness of the business enterprise, and achieving a more productive and efficient increase in the development of China’s promising property insurance market.

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