Linear Regression Model is Used to Analyze Regional Development Differences and Influencing Factors in China's Insurance Market

Abstract

Insurance is one of the three drivers of the financial industry and an essential part of the national economy. Its growth and expansion are of great significance to the healthy development of the national economy. Since the reform and opening-up, China's insurance industry has developed rapidly. Global premium growth is expected to stabilize at 4.4 percent over the next 10 years, while growth in the Chinese market is expected to average 9.5 percent [1]. However, unbalanced regional development has appeared in China's insurance market. Therefore, this paper will study the regional differences in China's insurance market growth and its influencing factors. At first, per capita disposable income, per capita pension of enterprises, per capita savings deposit, juvenile and child dependency ratio, elderly population dependency ratio, and the proportion of the tertiary industry were selected as explanatory variables to study the factors affecting premium income. The least-square method is used to build a regression model to calculate its correlation. The data are the cross-sectional data of provincial administrative units in China from 2018 to 2020. After the model establishment and test, the conclusion is drawn that per capita disposable income, per capita pension and per capita savings are the important factors that lead to the unbalanced development of regional premium income.