Research On The Impact Of Digital Financial Inclusion On Decision Of Household Commercial Insurance

With the times change,China total economic volume continues to grow,and people’s requirements for quality of life are gradually improving.Commercial insurance with dual functions of risk management and investment has gradually entered the field of vision of Chinese households.In contrast,the total size of China insurance market ranks second in the world,but the insurance density and premium depth of Chinese residents are far below the world average.The low quality of commercial insurance market development is not conducive to providing security for Chinese households,nor is it conducive to the sound development of China insurance market.Since the digital inclusive finance was first proposed in 2016,its rapid development has enabled more and more families in China to receive the services of inclusive finance,and the development of the insurance industry has also been improved.Therefore,it is particularly important that taking the individual family as the research object to research the influence relationship between digital inclusive finance and family commercial insurance,and to clarify the transmission path of the influence.Firstly,based on information asymmetry theory,life cycle hypothesis,liquidity constraint theory and financial socialization theory,this thesis analyzes the transmission mechanism that digital financial inclusion affecting purchase decisions of the household commercial insurance,such as income mechanism,liquidity constraint mechanism,social Interaction mechanism and financial literacy mechanism.Secondly,this thesis uses the Peking University Digital Financial Inclusion Index and China Household Finance Survey to conduct empirical analysis,and uses the sub-indexes of the Digital Financial Inclusion Development Index,which is the breadth of coverage and the depth of use,as explanatory variables for regression analysis.In addition,this thesis also research the differences in the impact of digital financial inclusion on the demand for different types of insurance.Furthermore,the thesis examines the differences in the impact of digital financial inclusion on different types of insurance.Next,this thesis uses the mediation effect model to test the transmission mechanism,and conducts heterogeneity analysis from the perspective of age and regional economic.The empirical results show that:(1)There is a positive correlation between digital financial inclusion and demand of household commercial insurance.The higher the development level of digital financial inclusion,the greater the demand for household commercial insurance in the region.(2)The breadth of coverage has a greater role in promoting the demand for household commercial insurance than depth of usage.Also the digital financial inclusion has a greater role in promoting the demand for commercial health insurance than commercial life insurance.(3)Digital financial inclusion can significantly increase household income so that increase the demand for family commercial insurance.(4)Digital financial inclusion can reduce the level of family liquidity constraints,thereby releasing the demand for household commercial insurance.(5)Digital financial inclusion can enhance the level of household social interaction,thereby increasing the demand and believablity for household commercial insurance.(6)Digital inclusive finance can improve the financial literacy of residents,thereby increasing the demand for household commercial insurance.(7)Digital inclusive finance has a greater role in promoting the demand of commercial insurance for household which head of household over 40 years old.It also reflects the phenomenon of unbalanced promotion in different economic development areas.Based on the above conclusions,this thesis puts forward policy suggestions from the perspectives of the government and insurance enterprises: government departments should increase the degree of attention between digital inclusive finance and the insurance industry,effectively transform the results of digital inclusive financial development into resident income growth,popularize financial knowledge through multiple channels,broaden the credit channels of resident enterprises,enhance the degree of social interaction among residents,focus on the balanced development of digital inclusive finance in different regions,and have a more inclusive attitude towards emerging things such as digital financial innovation.Insurance companies should strengthen product and service innovation,pay attention to the needs of vulnerable groups,focus on the establishment and promotion of brand image,and finally take into account the joint training of front-end marketing talents and back-end fintech talents.