Analysis On The Selection Of Commercial Insurance And Its Impact On The Allocation Of Household Financial Risk Assets

Recently,it has become a hot issue to study the asset allocation of Chinese households along with the continuous growth of family wealth and the rapid development of financial markets.The research on this issue can optimize the asset allocation of our households and improve the residents’ response.The ability of financial risks to promote the development of financial markets,thereby improving the overall level of national economic operations.As a supplement to social insurance,taking into account the characteristics of insurance value-added and risk protection,the rapid development of commercial insurance is also affecting the financial asset allocation of Chinese households.This paper uses the 2013 China Household Finance Survey(CHFS)to study the impact of commercial insurance on the allocation of risky financial assets of households in China.Among them,commercial life insurance,commercial health insurance and commercial pension insurance are key components of commercial insurance.Therefore,this paper will study the impact of commercial insurance on family risk asset allocation from three aspects: commercial life insurance,commercial health insurance and commercial pension insurance.This paper mainly studies the following questions.First,the impact of the holding of commercial insurance on whether the family enters the risk financial market.Second,the impact of the holding of commercial insurance on the proportion of risky financial assets in the allocation of family financial assets.Third,family business insurance choice behavior,fourth,based on the propensity score matching model to re-match the sample to study the impact of commercial insurance on whether the family holds risky financial assets and the proportion of risky financial assets.The empirical results of this paper show that: First,the purchase of commercial insurance can significantly increase the possibility of families entering the risky financial market.Among them,commercial health insurance has the greatest positive effect on the family’s entry into the risky financial market.The average marginal effect is 7.57%,followed by commercial pension insurance,which is 6.87%,and commercial life insurance is 5.60%.Second,having commercial insurance can effectively increase the proportion of family holding risky financial assets.The proportion of households who purchased commercial health insurance was 1.43% higher than that of households that did not purchase commercial health insurance,followed by commercial pension insurance,which was 1.38%,and commercial life insurance was 1.11%.Households with different characteristics have different preferences for different commercial insurance.Combining the empirical results of this paper with China’s current national conditions,the following suggestions are made to increase the government’s support for commercial insurance,enhance the professional operation of commercial insurance companies,and promote scientific management so that commercial insurance plays a more important role in the social security system.Role,enrich financial product types,improve the financial market system,and provide more investment options for residents’ investment.