Insurance Probability : Comparison

Background After the global economic downturn, the economies of the United States and China demonstrate substantial growth opportunities. Among many enterprises, insurance is one hopeful industry as more and more people are taking initiatives to protect themselves against risks in terms of lives, properties, investments, etc. While the insurance industry has been well-established in the U.S., the insurance industry in China is only beginning to grow rapidly. Prior to China's economic reforms in the late 1970's, the insurance industry in China was non-existing as most properties and businesses were government owned. 1 When the insurance industry was reinstated in the late 1970's and early 1980's, property insurance and especially life insurance were heavily promoted. According to the Swiss Re sigma study, the annual life insurance premium in 1999 totaled ten billion US dollars. 2 Upon joining the World Trade Organization in 2001, China loosened its regulations and allowed foreign companies to participate in the insurance industry. Life-insurance premiums in 2006 grew to forty-six billion US dollars. The latest Swiss Re sigma study reports that China's total insurance premium grew 15.79% in 2009; life insurance premium alone increased by 13.9%. 3 Due to many issues including socio-political structures and economic circumstances, insurance in the U.S. and China is quite different in many ways. This project aims to explore and analyze their similarities and differences.