Study On The Impact Of Population Aging On The Demand For Life Insurance In Shanghai

In recent years,China’s economy has been growing steadily and rapidly,and this has been accompanied by improved medical care and a better living environment,which has increased the average life expectancy of the population and exacerbated the problem of an ageing population in China,which has been ageing since 1979 and is now the second oldest city after Liaoning Province.As Shanghai’s ageing population is characterised by an advanced ageing population,a rising elderly dependency ratio and shrinking family size,basic social pension insurance and traditional family pension methods are no longer able to meet the current pension problem,and it has become the government’s first priority to properly address the residents’ pension problems.Commercial insurance can effectively make up for the shortcomings of social insurance and effectively alleviate the problem of an ageing population.In recent years,the state has vigorously supported the insurance industry,enabling it to develop rapidly and in the long term.However,compared to the global life insurance industry,there are certain constraints and limitations to the development of the life insurance industry in Shanghai.Both the density and depth of life insurance lag far behind the world average.This paper focuses on the impact of the ageing population on the demand for life insurance in Shanghai,which is of practical importance in addressing the problems caused by the ageing population and promoting the development of the life insurance industry in Shanghai.Firstly,this paper discusses the current situation of population ageing and the current situation of life insurance demand in Shanghai from various perspectives and makes a qualitative analysis in the context of Shanghai’s realities.It is clear that population ageing affects life insurance demand by slowing down Shanghai’s economy,changing the dependency ratio of the elderly population,affecting social infrastructure protection and shrinking family structure.Secondly,this paper establishes a VEC model for quantitative analysis.Relevant data for Shanghai from1995 to 2020 are obtained through relevant yearbooks and websites,and non-stationary variables are removed using preliminary OLS regression and unit root tests;Johansen co-integration tests are conducted to empirically analyse the factors influencing the demand for life insurance in Shanghai;finally,the VEC model is obtained and the relationship between disposable income per capita,Finally,the VEC model was obtained and concluded that per capita disposable income,elderly dependency ratio and life insurance demand are positively correlated;average household size and interest rate are negatively correlated with life insurance demand.Finally,the paper puts forward relevant suggestions for improving the demand for life insurance in Shanghai.Firstly,to promote insurance companies to design life insurance products for the elderly;secondly,to increase the publicity and supervision of life insurance in Shanghai;thirdly,to accelerate the introduction of tax incentives for life insurance in Shanghai;and fourthly,to deepen the reform of the insurance capital market in Shanghai.