Insurance Culture in China under the Conditions of Transformation

Abstract: During the process of transformation from Gemeinschaft to Gesellschaft, as a product of market economy, China's insurance industry has achieved great accomplishments since its reestablishment in 1980. However, it still encounters the problem of the low acceptance rate among Chinese people. They 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 (country), which cultural foundation is the traditional values including "loyalty, filial piety, and ties of friendship". Although there have been many changes of the traditional mode of dealing with risks because of the transformation, the traditional mode is still operating. The cultural values-"loyalty, filial piety, and ties of friendship"-dominate Chinese people's attitudes towards insurance and their insurance behavior. This paper discusses the influence of these values on the development of insurance in China.