Notice of RetractionInnovation performance of insurance businesses in China: Theoretical model and empirical analysis

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

Central to enterprise competitiveness, innovation is the spring of sustainable competitive advantage for insurance corporations. The key to fostering core competitiveness lies in continuous innovation, whereas the willingness or motivation to innovate is dependent on the ratio of output to input, and on the assessment of innovative performance. Since innovation input is part and parcel of the enterprise cost, the performance or achievement of the innovation is best demonstrated by the increased market value of insurances. Only when a fairly low cost produces a fairly high profit will there be more input into innovation. This present study attempts to construct a theoretic model of insurance innovation by applying the mainstream industrial organization theory. The paper proves the importance of insurance innovation to the development of insurance businesses and analyzes innovation welfare and the impact that market structure exerts on innovation performance. An empirical test is also conducted on innovation performances from 2001 to 2006, based on the panel data of thirteen major life insurance enterprises with great market share, followed by analyses of innovation objectives and strategies. At last, this paper propose advice concerning the innovation practice and recommendations are made for the insurers and the regulators.