The Impact Of Commercial Insurance On Household Consumption

With the official promulgation of China’s 14 th Five-Year Plan,it has been made clearly that boosting consumer demand is the main driving force to stabilize the national economy.In2021,China’s GDP was 114,367 billion yuan,increased by 8.1% over the previous year.Household consumption contributed 65.4% to China’s economic growth,increased GDP growth by 5.3% and contribution rate increased by 20% over the previous year.Thus,we can see that consumer demand occupies a dominant position in the rapid development of China’s economy.However,China’s average household consumption rate is only about 40%,far lower than the world average of 60%.The reasons behind it are heavy burden of domestic housing,medical care,pension and education,which leads to the reduction of residents’ willingness to consume.In addition,our country’s commercial insurance has maintained good growth since2005.On the one hand,the emergence of commercial insurance can better resist future uncertain risks and promote household consumption by reducing preventive savings.On the other hand,it also help to build a comprehensive and multi-level medical security system to make the public welfare optimization,to protect the interests of the policy-holder,to boost consumer demand.Therefore,it is pretty significant to study what commercial insurance have an effect on household consumption.This thesis investigates whether the commercial insurance holding by families can affect the consumption and consumption structure of the whole family.The research idea of this thesis is: First,introduce the research background and research significance of this topic.Second,this thesis introduces the relevant research theory of commercial insurance and household consumption.Then,after processing the data(CHFS)and defining variables used in this thesis,the research hypotheses and empirical model of this thesis are proposed.After that,basic regression and heterogeneity test of data samples were performed,and the problem of endogeneity was solved by propensity score matching.Finally,according to the research conclusions,the corresponding policy suggestions are given.According to the theoretical analysis and empirical analysis,the main conclusions of this thesis are as follows: First,families holding commercial insurance has a significant role in promoting the household consumption and it is helpful to promote the optimization of consumption structure.Second,compared with families with lower health capital levels,commercial insurance has a bigger effect on consumption for families with higher health capital levels.Third,compared with rural families,commercial insurance has a bigger effect on consumption for urban families.Fourth,compared with young and middle-aged families,commercial insurance has a bigger effect on consumption for middle-aged and elderly families.Fifth,compared with families with lower total income,commercial insurance has a bigger effect on consumption for families with high total income.The policy suggestions given in this thesis are as follows: First,vigorously develop commercial insurance,carry out product innovation,to provide families with a relatively high reimbursement rate,and a more comprehensive coverage of insurance products to improve family consumption demand and optimize consumption structure.At the same time,the government and insurance companies should cooperate with each other to improve the development of the commercial insurance market and effectively safeguard the interests of policyholders.Second,the government should strengthen the investment in basic medical service facilities,improve the existing medical service conditions,promote the establishment and improvement of China’s multi-level medical security system,and give full play to the huge role of commercial insurance in the multi-level medical security system.Third,for urban families,to strengthen the cooperation between insurance companies and insurance education departments,to popularize the importance of commercial insurance,to improve the awareness of medical risk prevention and insurance protection concept of urban families.In addition,insurance companies should launch more commercial insurance products for different groups of people,such as middle-aged and elderly families and high-income families,to better meet the insurance needs of different families and promote household consumption to the greatest extent.