Analysis Of College Students' Insurance Choice Behavior And Risk Preference Based On Cumulative Prospect Theory

Since the reform and opening up,the insurance market has made considerable progress,and the national premium income has increased rapidly.In 2017,China has replaced Japan as the largest life insurance market in Asia.China's insurance market also has great prospects for development.In recent years,in order to win customers and develop the market,various insurance products have emerged in endlessly.Relevant research shows that effective consumer choice behavior will stimulate price competition between insurance companies and thus increase consumer welfare.However,domestic scholars do not study the decision-making problems of consumers under uncertain conditions.The mainstream theory used to study decision-making under uncertain conditions has always been the theory of expected utility,using less prospect theory and cumulative prospect theory,and the cumulative prospect theory can reflect the subjective risk preference of individual decision makers more deeply.Based on the research at home and abroad,this paper combines the actual situation,using the methods of experimental questionnaire survey,literature research and data analysis to investigate the basic situation of college students' insurance program selection behavior and risk preference.First of all,analyzed the basic information of the respondents,and it was found that due to the lack of economic ability,the number of college students who chose to be insured accounted for a small proportion of the total number of respondents,and the types of insurance selected were mainly health insurance and accident insurance.Secondly,after relevant analysis,it was found that there was no significant correlation between the “total value of property” and the “proportion of the number of insured persons”,indicating that the respondents did not receive the income level when they selected the insurance plan.Finally,the cumulative prospect theory is used to analyze the risk preference of the respondents.It is found that the respondents are generally risk-averse,and their sensitivity to loss is significantly higher than that to gain.In the face of gains,they tend to prefer certain gains.Finally,according to the relevant research results,this paper puts forward several corresponding countermeasures and suggestions: to play the diversity of insurance functions;insurance companies help customers choose appropriate risk prevention measures according to different stages of customer numbers;innovation of insurance products should be targeted and hierarchical;improve public awareness of insu rance;subdivide consumers,etc.