Research On The Impact Of Housing Loans On The Demand Of Family Commercial Health Insurance

A strategy of strong domestic demand growth is the inevitable choice to accelerate the emergence of a new development model with a strong domestic demand cycle at its core and the dual circulation of domestic and external demand feeding into each other.Consumption is the most important engine of growth in the Chinese economy,but in recent years the phenomenon of sluggish consumption among the Chinese population has persisted.In China,around 100 million urban households are under pressure to repay their mortgages,and liquidity constraints on household mortgages have led to a lack of consumption demand among households.At the same time,due to the long-term nature of housing loan terms,residents’ health risks gradually increase,and the occurrence of diseases may lead to families being unable to repay housing loans on time.Protecting health risks through commercial health insurance can reduce medical expenses due to illnesses that leave households unable to repay their mortgages,improve households’ psychological expectations about the future,increase household consumption and boost domestic demand in China.Therefore,as households consume financial products,will commercial health insurance reduce their demand for commercial health insurance due to liquidity constraints caused by housing loans,or will it increase their demand for commercial health insurance due to reduced preventive savings and increased health risks caused by housing loans? It is worth studying and analyzing.This thesis presents a theoretical analysis of the relationship between mortgages and demand for commercial health insurance based on liquidity constraint theory,prospect theory,precautionary saving theory and utility maximization theory to investigate the mechanisms by which mortgages affect household demand for commercial health insurance using 2019 CHFS data for empirical analysis.Probit and Tobit models,drawing the following conclusions(1).(1)The effect of mortgages on households’ demand for commercial health insurance is a Ushaped relationship,where lower mortgage amounts depress households’ demand for commercial health insurance,while higher mortgage amounts boost households’ demand for commercial health insurance.(2)For the resident variable,household demand for commercial health insurance increases if the gender of the household head is female,if the household head is Han Chinese,if the household has a higher level of education and a higher level of financial literacy.Moreover,the older and more risk-averse the household head,the less the household needs commercial health insurance.(3)The impact of mortgages on household demand for commercial health insurance also reflects the heterogeneity of urban and rural areas,the heterogeneity of marriages and the heterogeneity of access to basic health insurance.The Ushaped relationship between household demand for mortgages and commercial health insurance is significant in the urban sample but not in the rural sample.The U-shaped relationship between mortgage demand and commercial health insurance is significant in the sample of married households,but not in the sample of unmarried households.The U-shaped relationship between mortgage and the need for commercial health insurance is significant for insured households but not for uninsured households.Based on the results obtained in this thesis,we conclude that recommendations should be made to the government and insurance companies to promote commercial health insurance and reduce the impact of mortgages on our economy.