Insurance Culture in China Under the Conditions of Transformation

Abstract

Since reestablished in 1980, as a product of market economy, China’s insurance industry has achieved great accomplishments. However, comparing with the commercial insurance in the Western, there are some different characteristics between China and the Western countries. Chinese people have their own understanding of insurance according to their knowledge of insurance. Chinese attitudes towards insurance are less positive. For those Chinese who have purchased commercial insurance, their insurance behavior displays the influences of culture. Facing insurance—one method of dealing with risks, Chinese people like to compare it with the traditional mode of dealing with risks which is composed of family, human relationships, and work unit (State), which cultural foundation is the traditional values including “loyalty, filial piety, and ties of friendship”. China’s insurance industry still encounters the problem of the low acceptance rate among Chinese people. But due to the social transformation in China, China’s social structure has been changing which causes the cultural change. Cultural change brings opportunities for the development of commercial insurance in China.