Investigation into the matching problem between insurance demands and insurance supply in Shanxi Province, China

With the development of the social economy and the improvement of people’s living standards, the role of insurance in society has become increasingly important. The insurance industry’s growth is not in line with social demands. Insufficient insurance capacity or a mismatch between insurance products and demands in specific regions or industries can lead to increased social risks and unprotected interests. Taking Shanxi province as an example, it is a substantial industrial and energy base in China with abundant resources such as coal and power. Shanxi province is facing challenges of transformation and upgrading due to the transformation of economic structure and the increasing environmental awareness. The matching problem between social demands and insurance capacity becomes particularly important in this process. This paper aims to examine the issue of insurance demand and supply matching, using Shanxi province as a case study. The demand for insurance protection is increasing as social risks increase with rapid economic development and improvements in people’s living standards. However, there is a gap between insurance capacity and social demands, which limits the development of the insurance industry and the effective management of social risks. The characteristics of insurance demands and the current situation of insurance supply in Shanxi province are analyzed through a literature review and empirical research methods in this paper. It discusses the problems and shortcomings of the insurance industry in meeting social demands and proposes a series of policy recommendations to promote the matching of insurance demands and supply.