Empirical Study on the Relationship between Urbanization Process and Insurance Industry Development 

Rui Yang1, Jingjing Zhou2, Chen Zhang3

1. School of Finance, Anhui University of Finance and Economics, Bengbu, 233030, China 

2. School of Statistics and Applied Mathematics, Anhui University of Finance and Economics, Bengbu, 233030, China

3. School of Finance and Economics, Anhui University of Finance and Economics, Bengbu, 233030, China

Abstract: Based on the macro statistical data of China from 1998 to 2017, the article establishes the VAR model by selecting the urbanization rate and premium income as endogenous variables. Through the impulse response function and variance decomposition analysis of the variables, the article studies the dynamic rela-tionship between the urbanization process and the development of the insurance industry empirically. The results show that the urbanization process and the development of insurance industry in China promote each other and there is a long-term equilibrium relationship. But they mainly depend on their own development. Therefore, the article puts forward some suggestions, such as vigorously promoting the urbanization process, improving the infrastructure construction and increasing the publicity of insurance knowledge.

Keywords: Urbanization; Insurance development; The VAR model