Research On The Influence And Difference Of Typical Social And Commercial Insurance On Household Financial Asset Allocation

With the rapid development of China’s economy,the household income has also risen.In order to better promote the efficient allocation of financial assets in the household sector,many scholars have studied various factors which affect the allocation of household financial assets to find key factors for helping the growth of household assets,promoting the rational flow of financial assets in various sectors and stimulating the development of country’s basic financial market.As an important tool to provide living guarantee and ensure family stability,insurance have the ability to affect the family’s choice of risky financial asset allocation to a considerable extent.However,the specific insurance type determines the similarities and differences in specific effects.China’s insurance industry has a broad space for future development.Thus,in order to better judge the impact of insurance,identify the difference of the impact and then promote the optimal allocation of household financial asset through the development of China’s insurance industry,this thesis selects four types of insurance,including social endowment insurance,social medical insurance,commercial life insurance and commercial health insurance,as typical social and commercial insurances to explore their impact on household financial asset allocation.The thesis first summarizes the domestic and overseas literatures on the factors that affect household financial assets allocation and the impact of insurance on the allocation of household financial assets.Main characteristics and deficiencies of existing literatures are listed.On this basis,it expounds the research theories on insurance and household financial assets and summarizes the four major mechanisms that insurance affects the allocation of household financial assets based on the existing literature.Combined with the mechanism,the research hypothesis of this thesis is put forward:Holding any insurance can promote family participation in risky financial market.The impact of commercial insurance is stronger than social insurance,the impact of social endowment insurance is stronger than social medical insurance,and the impact of commercial health insurance is higher than commercial life insurance.Secondly,based on the expounding of current development status of various insurance types and household financial assets allocation in China,the thesis uses the data of the China Household Finance Survey in 2019 to construct relevant variables about the overall insurance,sub-category insurance and specific insurance types.Qualitative and quantitative empirical regression tests are carried out on the Probit model and the Tobit model at three levels.On this basis,a subsample heterogeneity analysis is carried out and the propensity score matching method is used to avoid the problems of missing variables and selection bias.Finally,the empirical results in line with the expected hypothesis are obtained and the corresponding effect is interpreted.Hereby,this thesis puts forward corresponding research conclusions based on the existing theory,mechanism and empirical results:First,social insurance is basically universal in China and commercial insurance is developing rapidly.However,there is a certain room for improvement in the allocation of household financial assets.Second,each typical social and commercial insurance can positively promote the possibility of households participating in risky market and increase the allocation ratio of households’ risky financial assets.Third,as for the specific impact degree,the effect strength of commercial insurance is higher than that of social insurance.The average treatment effects of the two types of commercial insurance and social insurance obtained by propensity score matching are 0.0731 and 0.0381 respectively,which means the probability of household’s participation in risky market will increase by 7.31%and 3.81%respectively.Fourth,the effect of social endowment insurance is higher than that of social medical insurance,and the effect of commercial health insurance is higher than that of commercial life insurance.The average treatment effects of the four obtained by propensity score matching are 0.0413,0.0375,0.0678 and 0.0874 respectively,which means the probability of insured households to allocate risky assets will increase by 4.13%,3.75%,6.78%and 8.74%respectively.Finally,on the basis of empirical conclusions,mechanism and the status quo of China’s insurance industry and household financial asset allocation,this thesis proposes that the government should improve social security services,support key commercial insurance.The enterprise should innovate insurance products and optimize compensation standards.The family should develop the idea of covering insurance and improve financial literacy.