Research On The Impact Of Inclusive Insurance On Urban-Rural Income Gap

The report of the "Twentieth National Congress of the Communist Party of China" mentioned "common prosperity" eight times,highlighting the important role of common prosperity in the new journey of socialist modernization.In December 2022,the former China Banking and Insurance Regulatory Commission issued the "Guiding Opinions on Promoting the High-Quality Development of Inclusive Insurance(Draft for Soliciting Opinions)",proposing to make the development achievements of inclusive insurance widely benefit all people.Equity and the development goal of being all oriented make inclusive insurance and common prosperity have a natural internal link.To achieve common prosperity for all people,we must solve the problem of income gap.At present,there is a certain gap between urban and rural incomes in China,and the rural income level is relatively low.The universality and benefits reflected by the wide coverage and low premiums of inclusive insurance are closely related to rural vulnerable groups,small farmers,and low-income rural households.Firstly,the insurance threshold for inclusive insurance is relatively low,and as an affordable insurance service,it can widely adapt to the risk protection needs of rural residents,providing protection for uncertain risks such as yield decline and natural disasters faced by agricultural production;Secondly,inclusive insurance reduces the burden of medical expenses on rural households,which is conducive to maintaining stable income for rural households.To promote the development of agriculture and rural areas,land is a key factor.The flow of rural land resources(agricultural land circulation)is conducive to the effective allocation of resources.On the one hand,it can promote the improvement of agricultural production efficiency,increase agricultural output,and thus increase the agricultural production income level of rural residents;On the other hand,the combination of rural land transfer and Crop insurance is conducive to further helping rural residents balance income and risk.Therefore,it is of great theoretical and practical significance to study the impact of inclusive insurance on the urban-rural income gap,and further analyze the intermediary role of rural land transfer in the improvement of rural household income level by inclusive insurance,which will promote the development of agriculture and rural areas and achieve the development goal of common prosperity for all people.Based on the sustainable livelihood theory,Amartya Sen’s theory of feasible ability and right poverty,and Lewis’ s theoretical model of dual economic structure,this paper deduces and analyzes the role of inclusive insurance in improving rural households’ income ability and livelihood capital.Select indicators from multiple dimensions,construct a comprehensive evaluation index for inclusive insurance,and measure the urban-rural income gap using the Thiel index.Based on the analysis of the mechanism of inclusive insurance affecting the urban-rural income gap,this paper studies the mediating effect of rural land transfer.In empirical research,regression was conducted on each indicator dimension of inclusive insurance(permeability level,contact level,and usage efficiency)to further analyze the mechanism and development direction of China’s inclusive insurance in narrowing the urban-rural income gap.The research results indicate that,firstly,developing inclusive insurance is beneficial for improving rural income levels and narrowing the urban-rural income gap.Among them,inclusive insurance can directly improve the level of agricultural and rural development and increase rural income by promoting economic development,or indirectly reduce the urban-rural income gap by promoting agricultural land circulation and improving production efficiency.Further research has shown that inclusive insurance provides risk protection for small farmers facing agricultural land transfer risks,enhances their willingness to transfer agricultural land,and is conducive to promoting the large-scale development of agricultural production and modernization of agriculture and rural areas.Therefore,it is necessary to further improve the policy system of inclusive insurance,clarify the connotation and development direction of inclusive insurance.