In the past two decades, the insurance industry in China has experienced the development process of franchise, local competition and multi-regional activities of market participants. First, national capital insurance companies set foot in the insurance field, and then foreign insurance companies successively entered. After more than 20 years' efforts, the situation that China's insurance industry lags behind developing countries has been changed, and the inherent requirements of reform and opening up for insurance development are shrinking day by day. The insurance industry began to integrate with international technical standards in its operation, and it has also become a rapidly developing industry, which has attracted more and more attention from the society. From 65438 to 0999, the national property insurance and life insurance premium income was141800 million yuan, which was 506 times of the insurance payback period income of 280 million yuan. Nevertheless, there is still a certain distance between the supply level of insurance industry in China and the objective demand of society, and there is still a certain degree of structural contradiction between market supply and demand, and the reinsurance market in general has not yet seen its embryonic form; The depth of industry marketization is far from enough, and domestic insurance companies are generally unprepared for how to deal with the brutal competition brought about by the full opening of China's insurance market, both technically and conceptually. Although China has implemented a strict industrial restraint policy, the income effect brought by market protection has not been shown in the operating performance of the insurance industry. It is still a question whether the insurance industry in China can maintain a certain income now, not to mention the internationally accepted industry efficiency evaluation method, even if it is evaluated according to the current domestic financial system. These problems have institutional reasons, operational management reasons and regulatory reasons. In the final analysis, it is nothing more than the inefficient growth of the insurance industry due to the underdeveloped market and low marketization depth. At present, there are various deficiencies in the development of China's insurance industry, which are caused by different reasons. For example, in insurance supply, there is a contradiction between total supply and supply structure, which involves the supply capacity of the insurance industry itself, the supply price of insurance, the service level of insurance, the degree of industry constraints, the income level of potential insurance demanders, the coverage of social safety net and the insurance level. Insurance supply ability refers to the ability that the insurance industry can actively provide to the society to accept and bear insurance risks and the product innovation ability to meet the growing new insurance demand of the society. Although China's insurance was imported from the west, 1949 The development of insurance after the founding of New China was greatly influenced by the Soviet Union. Even after 1980, the insurance industry still continues to use the original management mode, with limited types of insurance, rough insurance premium rate structure, limited insurance coverage and highly centralized insurance management, and the development of insurance has been in a "seller's market" state for quite some time. In addition, the lack of professional and technical conditions and innovation ability of insurance companies will inevitably have a direct impact on insurance supply. Nowadays, some insurance products that have been popular for a long time in some western insurance markets are regarded as new types of insurance in China. The common insurance practices in some industrialized countries can only be established by the administrative power of the supply and demand sides in China, and there are also many gaps in the field of liability insurance. This shows that the insurance supply in China is insufficient. The insurance supply price is the consideration condition for the insurer to provide insurance protection to the insured, which is reflected in the standard level of insurance premium rate. The premium rate has two components. One is the liability preparation part calculated by the insurer according to the principle of the law of large numbers to compensate for a certain type of risk loss. The other is to maintain management expenses and a certain level of profit required by the insurer. Objectively speaking, although China's insurance rates are different due to different types of insurance, as far as property insurance is concerned, its insurance rate level is still high. The reason for the high insurance rate is not that the rate factor used for compensation is too high, but that the insurance company takes up too much administrative cost factor under the extensive business model. In the asset composition of China's insurance companies, the proportion of fixed assets is rare in insurance companies all over the world, and the per capita consumption cost is also at a high level in the domestic tertiary industry. Excessive fees will inevitably keep the price of insurance services high; Those potential insurance buyers who do have insurance needs but have to scrimp and save for their daily livelihood are faced with luxurious insurance buildings, whose income is much higher than that of their own insurance practitioners, and the insurance service standards that can only be exchanged for a considerable part of their income sometimes produce rebellious psychology, which will inevitably weaken the supply capacity of insurance. The service level of insurance refers to the initiative and service efficiency of insurance companies. In this respect, there is still a certain gap between domestic insurance companies. Especially in the aspect of compensation that embodies the core function of the insurance industry, there are many unsatisfactory places, one is delay, and the other is that claims are often lacking in legitimacy. Needless to say, this will inevitably have a very adverse impact on insurance supply. Industrial constraint generally includes two meanings: one is the requirement for the subject to enter the market, and the other is the degree of restriction on the business behavior of the subject who has already entered the market. For a long time in the past, China had strict requirements for the qualification of the subject to enter the insurance market, and at the same time had mechanical constraints on the insurer's business behavior. It should be acknowledged that it is an inevitable choice to implement certain industrial restraint policies to ensure the orderly development of this industry in the early stage of market development. The implementation of industrial suppression actually means the limited emergence of market players, and at the same time, the players who have entered the market will also show insufficient business vitality because of market protection. It goes without saying that all these will have a direct impact on insurance supply.