A Study on the Impact of China’s Insurance Industry on Socio-economic Development

Drawing on the panel data of 30 provinces and cities in China from 2011 to 2018,this paper adopts the Solow Growth Model to empirically test the impact of China’s insurance industry on domestic socio-economic development through calculating the benchmark ratio of insurance penetration (BRIP), insurance density (ID), and insurance total efficiency (ITE). The results prove that among the selected insurance industry indicators, benchmark ratio of insurance penetration, life insurancedensity, the efficiency of the insurance’s financial intermediary function, and other indicators all significantly promote socio-economic development with the exception of the property insurance density and the functional efficiency of the insurance payout. On the whole, for present-day China, stepping up efforts to expand the insurance industry, raising the people’s insurance awareness, and elevating the operational efficiency of the insurance industry can all benefit socio-economic development, and the positive role of insurance has hence been pursued.