The Impact Of Medical Insurance On The Allocation Of Financial Assets Of Chinese Households

With the continuous development and improvement of China’s financial market,people’s awareness of investment has increased,households have gradually played an important role in the financial market.In the current financial market environment,households can access more financial products,and they can optimize financial asset allocation through prudent decision-making.In order to avoid risks in the financial market,households will increase precautionary savings,which will restrain consumption and investment.China’s social security system is still in the stage of development,with social medical insurance as the main body and commercial medical insurance as the supplement.Participating in medical insurance can help households disperse risks,reduce uncertainty,reduce precautionary savings and adjust asset allocation structure.Therefore,studying the relationship between medical insurance and household financial assets can help households rationalize investment decisions,optimize asset allocation,and achieve good wealth growth.It also has certain practical significance for the improvement of China’s financial market and social security system.The two core issues studied in this paper are the impact of medical insurance on the probability and proportion of household risk financial assets.This paper summarizes the main factors affecting household financial asset allocation based on relevant research at home and abroad.Then,based on the characteristics of questions,suitable Probit model and Tobit model are established,and 36,074 household samples from the 2017 China Household Finance Survey are used for empirical analysis.This paper discusses the influence of social medical insurance and commercial medical insurance on the holding probability and the holding proportion of household risk financial assets.Because of the obvious heterogeneity of households,this paper further analyzes the heterogeneity of urban and rural,regional and risk attitude,and draws the following conclusions.The conclusions are as follows:(1)Social medical insurance has a significant positive effect on the probability and degree of household participation in the risk financial market.It can reduce uncertainty,improve investment structure and optimize asset allocation.Although commercial medical insurance can also reduce household precautionary savings and promote investment,it has a substitution for risk assets due to the high cost of insurance,and the comprehensive effect makes the impact of commercial medical insurance on risk financial market not significant.(2)The impact of social medical insurance on household financial asset allocation is significantly different between urban and rural areas.Urban households are significantly affected,while rural households are more concerned with health status,economic situation,and knowledge level.what’s more,urban and rural households are not sensitive to commercial medical insurance.(3)The impact of social medical insurance on households in the eastern region is more significant,but it cannot effectively encourage the households in the central and western regions to invest in risky financial assets.(4)Social medical insurance can promote the participation of risk-neutral and risk-averse households in financial markets,but it will not affect riskappetite households.Owning commercial medical insurance will increase the possibility of risk-appetite households entering the risk financial market,and the effect on risk-averse households is just the opposite.