The reasons why China's insurance industry is still in the initial stage of development are as follows:

Although China's insurance industry has made some achievements, compared with developed countries and the requirements of economic and social development, there is still a big gap, and China's insurance industry is still in the initial stage of development.

1. The development of insurance industry is not suitable for the economy. The development of China's insurance industry is not suitable for the economy in four aspects. First of all, it is incompatible with the overall strength of national economic development. In 21, China's GDP ranked second in the world, but its premium income ranked sixth. The proportion of premium income to GDP is 8% on average in the world, but only 4% in China. Secondly, it doesn't meet the people's living standards. Although the varieties of insurance products have made great progress, they are still not rich, and many types of insurance urgently needed by the people can't be provided, which can't effectively meet the multi-level needs of society. And it is not suitable for the construction of a harmonious society. China's per capita long-term life insurance coverage rate is far below the world average, and the role of insurance is still relatively limited. Finally, it does not meet the requirements of the reform and development of the financial system. China's insurance assets account for about 4% of the total assets of the financial industry, while this ratio is as high as 2% in developed countries.

2. The integrity of the insurance industry in China is lacking. At the end of 28, the State Council Development Research Center and China Economic Testing Center of National Bureau of Statistics conducted a survey on domestic public insurance, which showed that less than 1% of the people recognized domestic insurance companies, only about 6% thought that domestic insurance companies had good integrity, 7% thought that integrity was average, and 26% held a distrust attitude. According to international standards, when 6.5% of consumers in an industry don't trust him, it indicates that the industry has entered a crisis stage. The lack of good faith in China's insurance industry has become a bottleneck restricting its own accelerated development. It is easy to claim for insurance, but it is difficult to strictly fulfill the insurance contract. The repeated occurrence of similar incidents, such as pressing claims, pressing claims, and misleading consumers by agents, is an overdraft for insurance companies to pursue high growth in the future and consumer confidence.

3. Facing the international situation, China's insurance industry is facing a severe test. Foreign insurance companies are far better than domestic companies in terms of financial strength, product development technology, business development mode and management level. Competing with such companies on the same stage will undoubtedly bring competitive pressure to the insurance industry in China. Moreover, foreign insurance companies enjoy preferential treatment in terms of taxation. In terms of capital operation, foreign insurance companies can invest in stocks, real estate, loans, etc., and the capital utilization rate is generally above 85%, while Chinese insurance companies have relatively narrow channels for using insurance funds. Foreign insurance companies can seize the market by reducing insurance rates and increasing insurance agency commissions by virtue of their economic strength and tax advantages. It can be predicted that with the development of the insurance industry, the impact of foreign insurance companies on the domestic insurance market will inevitably escalate and reduce the living space of the national insurance industry.

4. The current situation of talents in the industry is worrying. In 21, according to statistics, the number of employees in the national insurance system was nearly 64,. If we add 3.3 million insurance marketers and other insurance intermediaries, the number of employees in the insurance industry will reach 4 million. However, on the whole, there are still some problems that cannot be ignored in the construction of talent team in the insurance industry. The training of insurance talents is lagging behind, and the total number of insurance talents is lacking. As far as the Beijing market is concerned, there is a gap of more than 1, insurance talents. Moreover, the quality of talents is not high, and the proportion of high-level talents is low. As far as the 3.3 million insurance marketers in China are concerned, less than 3% of them have college diplomas or above, and most of them have high school or technical secondary school education, and insurance professional knowledge is generally lacking; As for senior management talents, it is even scarcer. However, the talent structure is not reasonable enough. In the national insurance professional and technical personnel, the proportion of actuarial, underwriting and claim settlement personnel is obviously low, which does not match the development of the entire insurance industry at all. Moreover, there are problems such as uneven geographical distribution and disorderly flow of talents.

Further reading: How to buy insurance, which is better, and teach you how to avoid these "pits" of insurance.