Study On Influence Of Strong Ties On Commercial Health Insurance Demand

The aging of population brings about the emergence of disease risk and the surge of medical expenses,while the low fertility rate and the miniaturization of family structure further weaken the risk resistance ability of micro families.According to“China Statistical Yearbook”,the Annual growth rate of per capita health care expenditure in our country is double-digits from year 2014 to 2018.During this “new normal” economy,the difficulties and high costs of getting medical services,as well as falling into or falling back to poverty for catching diseases,have threaten people normal for a long time.Commercial Health Insurance(CHI)as a modernly efficient tool to share diseases risks is a great complementary for limited Basic Medical Insurance.However,the depth and density of commercial health insurance in China are far lower than the average level of developed countries.As the result,the development of CHI has been drawing great attentions from government to folks.How to impulse residents' CHI demand is a key to improve residents' health security and development of CHI.Risk existence is far earlier then modern insurance system,residents had been using social relationship to deliver risk information and share damages,when insurance was on earth.Because of the pattern of difference sequence of relation in our country,which has played a DNA role in our traditional Confucian culture,“Strong Ties” takes the majority part in risk sharing.“Clan relationship” stands core position in the pattern of difference sequence of relation for blood connection.Secondary,“friendship” built for common interest is becoming increasing important in daily life,which resulted from economic development,population mobility and“Birth Control Policy”.Apart from friendship,“religion group relationship” is another special Strong Tie,including social interaction approach which is same like clan relationship and friendship,religion group relationship influences residents' risk value by faith approach.The population,according to “China's Policies and Practices on Protecting Freedom of Religious Belief(2018)”,of people who has faith is quietly soaring for about 200 million nowadays and religion group relationship also catches many researchers' eyes.The communication between resident and Strong Ties has not disappeared from when CHI was born.As the result,Strong Ties will influence residents' CHI demand.How does Strong Ties influence residents' CHI demand,either crowd in or crowd out,the approaches are what,weather different effects on CHI demand caused by different Strong Ties are existence or not? Answering those questions above is this paper's purposes.Furthermore,this paper foucs on effects made by clan relationship,friendship and religion group relationship which represent Strong Ties' majority parts.In this paper,first,we can see residents how to choice Strong Ties or CHI to deal with disease damage,we can analyses residents' risk management system and health care demand from a “social man” not a “rational man” perspective.Second,from studying the approaches how Strong Ties impact CHI demand,insurance industry can reset the orientation of CHI in order to optimize CHI product development and marketing planning,which will improve CHI's market share.Third,with the “big data”,“cloud computing” and “artificial intelligence(AI)” empowering insurance industry,the variables,which describe the communication between residents with Strong Ties,will be included in risk computing models to optimize “customer portrait”,then,insurance industry can improve market segmentation,estimation of potential market size,product diversification,as well as controlling of “adverse selection” and “moral hazard”,by the way,CHI market will have a soaring development.When talking about the theoretical basis,this paper shows that family structure in our country nowadays is becoming decentralization and small scale,risk sharing ability of Strong Ties is reducing,residents have to seek help from market's hands to cover their health care gaps.Second,Strong Ties deliver diseases information that will impulse residents' risk perceptions,then,improve residents' psychological demand on CHI.Third,members of Strong Ties can be a reference point for their illness experiences helping residents make relational expectation about diseases caught by themselves in the future.Strong Ties members who have CHI consumption experiences can be targets for imitating and learning by residents who have not been insured.According to the theoretical basis above,this paper indicates that Strong Ties will positively affect CHI demand.To prove the proposes above,this paper uses “chief-part-chief” structure,we give our basic hypothesis in the front of this paper,then,in the following empirical analyses,we divide “Strong Tie” into three sub-relationships to build models and compare their differences,in order to proving our basic hypothesis.First,introduction shows residents' medical expenditures,CHI market development and effects on folks' daily life by Social Network recently in our country,with background and summary of this paper.In chapter one,this paper combines the literatures review about Strong Ties theory,risk perception theory,consumer behavior economic theory and others,building bridges between different theories to set this paper's theoretical basis.Besides,this paper divides Strong Ties into clan relationship,friendship and religion group relationship three majority parts,based literatures review and theoretical basis,as giving research framework for following chapters.In chapter two to four,from clan relationship,friendship and religion group relationship three subrelationships of Strong Ties,this paper shows how Strong Tie impacts CHI demand,with using history data with regional mean as instrument variables to do robust checks.Chapter five compares the difference among those three different Strong Ties' effect on CHI demand,showing heterogeneity in degrees of influence,approaches and different subsamples backgrounds.Chapter six,which based those conclusions gotten before,sorts out and summarizes the performances of Strong Ties impact on CHI demand,then,this paper standing on insurance companies' perspective gives suggestions at last.From empirical analyses this paper finds that,first,clan relationship crowds in CHI demand,because traditional Confucian culture clan relationship is rooted in residents' spiritual core,as the result,clan relationship did not be absolutely crowded out by CHI.On the contrary,by using “cost minimization equilibrium model” and China Household Finance Survey Data(CHFS),this paper shows that clan relationship can deliver disease risk perception and motivate commercial insurance knowledge learning behavior to improve folks' CHI demand.Second,friendship crowds in CHI demand as before,by using “SIRS epidemic model” and China Household Finance Survey Data(CHFS)this paper shows that friendship improves folks' CHI demand by delivering disease risk perception,motivating imitation and commercial insurance knowledge learning behavior three ways.Third,religion group relationship crowds in CHI demand,a local mathematical models,based on Solow model,named“Health-Religion-CHI model” and the data from 29 provinces of China during2007-2017,as well as Chinese General Social Survey Data(CGSS)are used to study how religion group relationship influences CHI demand nowadays.Because of religions distort thoughts in residents' mind,compared with high redemption religions,low redemption religions are more significant for showing those positive effects.Fourth,when comparing the effects on CHI demand from three Strong Ties talked above,clan relationship has “congenital advantages” for blood connection,clan relationship can deliver more tacit knowledge about disease damages and insurance experiences than others.Friendship,which is easier to build proposefully,can deliver overt insurance information widely and diversely.Besides,friendship has imitation approach effect which clan relationship doesn't have.Faith approach only exists in religion group relationship and the variables of religion group relationship display independent character among other Strong Ties variables,but religion group relationship,which has income threshold and only show significance in high income subsample,as well as Beijing,Shanghai and Guangzhou subsample,is significant impacted by income and regional development.Wholly speaking,although clan relationship,friendship and religion group relationship have different degrees of influence and approaches,combing those three relationship together,this paper prove that Strong Ties positively affect CHI demand,which is the main topic.The contributions in this paper are following,first,literatures about CHI demand in the past often regard residents as “relational persons” studying their insurance decisions when earning budget,basic insurance and other portfolio are changing,but this paper pay main attention to effect on CHI demand from Strong Ties,when residents are seen as “social man”,in order to show insurance industry how folks' disease risk sharing management in normal life.Second,this paper builds bridges to connect Strong Ties theory,risk perception theory,consumer behavior economic theory and others,giving more detail reviews in different Strong Ties in their own chapter.Furthermore,mathematical models are given in chapters,those works can provide fundamental theory basics for CHI demand studies in the future.Third,different with researches,which indicated that crowded out relationship between Strong Ties and CHI,so far,this paper shows that residents can both use Strong Ties with CHI to get higher level health care to against diseases risk.In empirical analyses,this paper not only proves that Strong Ties crowds in CHI demand,but also gives approaches how the effects happened and compares their differences,which shows more details than other literatures not gave before.