ABSTRACT
The insurance industry has been quickly developing in China since the 1990s when China People's Insurance Company was restructured. The need for health insurance and life insurance becomes increasingly important as unemployment, benefit restructuring in state-owned enterprises, and a rising education cost are faced by many urban residents in the economic transition. Property insurance is also getting popular as the wealthier of urban residents are starting to own real estate and automobiles. On the other hand, the improved income and living standards in rural areas, lack of health benefits from the government, increased healthcare costs, and reduced family size with fewer children have all contributed to the newly emerged need of insurance in rural areas for health, life, and retirement. The highly risky nature of agricultural business imposes another need for production insurance (for example, crop yield, livestock, aquiculture, and so on), and such insurance products are not widely available in China yet. Sporadic experiments have been conducted in the past, and systematic programs have been available only in Shanghai and Xinjiang.
