The Impact Of Commercial Medical Insurance On The Allocation Of Family Risk Financial Assets

Chinese households have a low degree of participation in the risky financial assets and the structure of household financial assets is unreasonable.According to the 2019 Chinese Household Finance Survey,the participation rate,proportion and types of risk financial assets held by Chinese households are only 26.07%,30.11% and 0.35 respectively.The low participation rate of risky financial assets not only makes it impossible to maintain and increase the value of household assets,but also hinders the further development of China’s financial market.An important reason why families dare not participate in the risk financial market is that they face high health risks.In order to prevent possible medical expenditure,families will hold more risk-free financial assets,thus crowding out families’ investment in risk financial assets.In recent years,the complementary role of commercial medical insurance has been gradually accepted and recognized by people.Due to its wider insurance coverage and higher protection level,compared with social medical insurance,commercial medical insurance can play a better role in reducing the medical burden of families.Therefore,under its protection,families will more actively participate in the risk financial market.Based on this,this paper studies the impact and mechanism of commercial medical insurance on China’s family risk financial asset allocation,which not only provides a solution direction for optimizing structure of family risk financial assets,but also provides a theoretical basis for further improving China’s commercial medical insurance and guiding families to allocate risk financial assets reasonably.Based on the research ideas of traditional economics,after explaining the relevant concepts and theoretical basis,this paper first makes a theoretical analysis of the impact of commercial medical insurance on the allocation of family risk financial assets,then describes its current situation,then makes an empirical test using chfs data in 2017,and finally puts forward policy suggestions on this basis.Specifically,in the empirical part,this paper measures the allocation of family risk financial assets from three aspects:participation probability,participation depth and holding diversity.On this basis,the article first makes an empirical test in the whole sample by using probit and tobit model,then uses the intermediary effect model to analyze the intermediary role of health in it,and finally makes a heterogeneity analysis of urban and rural families,families of different ages and families of different income levels to explore the impact of commercial medical insurance on different families.The main conclusions of this paper are as follows:(1)The probability,proportion and diversity of risk financial assets held by Chinese families are low,and the participation degree of different families is different.In addition,due to the limited development level of insurance market and residents’ weak awareness of insurance,the participation of Chinese families in commercial medical insurance is also low;(2)Holding commercial medical insurance can improve the probability,proportion and diversity of risk financial assets held by families.Under the function of reducing family preventive savings,reducing family risk exposure and improving family risk preference,families with commercial medical insurance will actively participate in the risk financial market and hold more amounts and types of risk financial assets,which can optimize the structure of family financial assets and reduce the non-market risks faced by families;(3)Health can play an intermediary role in the process of commercial medical insurance affecting the allocation of family risk financial assets,that is,holding commercial medical insurance can promote families to invest in risky financial assets by improving family health status;(4)Due to the different levels of wealth,risk aversion and education among families,the impact of commercial medical insurance on the allocation of risky financial assets of different families is heterogeneous.Specifically,commercial medical insurance plays a greater role in promoting urban families,young and middle-aged families and high-income families.According to the research conclusions,in order to promote the development of China’s commercial medical insurance and optimize the allocation of family risk financial assets,this paper puts forward the following suggestions:(1)Strengthen the top-level design,improve laws and regulations,improve the professional operation ability of insurance companies continuously,and improve the commercial medical insurance system;(2)Improve the ability of families to participate in insurance and invest,implement active employment policies,pay attention to urban-rural and regional differences,and fully stimulate the working potential of residents;(3)Further improve the financial market,launch diversified financial products to meet the needs of families,strengthen financial market supervision,and pay attention to the fairness of financial development;(4)Strengthen family financial education,strengthen the popularization of insurance and financial knowledge,enhance family risk prevention awareness,and improve family financial literacy.