A Study On The Relationship Between The Development Of Insurance Industry And Residents Consumption In Jinhua

Jinhua is located in the central region of Zhejiang Province,its industrial development is diverse,and the population inflow is increasing year by year.In 2021,Jinhua was selected as "China’s Top 100 Prefecture-level Brand Cities" and "China’s Top 100 Foreign Trade Cities",and its economic strength should not be underestimated.As one of the three carriages of the economy,consumption has an irreplaceable role in economic development.However,in recent years,the economic situation at home and abroad has been grim,and the COVID-19 has made the economic situation worse.The outline of the 14 th Five-Year Plan points out that China should deeply implement the strategy of expanding domestic demand,enhance the basic role of consumption in economic development,and comprehensively promote consumption.As a "stabilizer" and "booster" of the economy,insurance has the functions of risk diversification,economic compensation,financial integration and social management,and it is an effective way to promote residents’ consumption.Therefore,studying the correlation between the development of insurance industry and residents’ consumption in Jinhua,therefore,grasping the mechanism of insurance affecting residents’ consumption,and studying the correlation between the development of insurance industry and residents’ consumption in Jinhua,can not only provide effective policy suggestions for insurance industry and the development in Jinhua of economy in the post-pandemic era,but also provide reference for other cities.This paper first introduces the function of insurance,and discusses the mechanism of insurance affecting consumption in combination with reality,and then analyzes the development status and existing problems of insurance and consumption in Jinhua.On this basis,this paper uses the Vector Autoregression model to explore the correlation between life insurance and property insurance in Jinhua and the consumption of urban residents and rural residents.The research results show that:First,property insurance and resident consumption have a two-way promotion effect,property insurance has a strong role in promoting resident consumption,and resident consumption has a weak role in property insurance;Second,the impact of life insurance on residents’ consumption is not significant,and the promotion effect of residents’ consumption on life insurance is significant;Third,the role of resident consumption in property insurance and life insurance is mainly reflected in the consumption of urban residents.Finally,based on theoretical analysis and empirical research results,we put forward countermeasures for Jinhua to promote consumption with insurance.