Study On The Influence Of Commercial Life Insurance Purchase On Resident Consumption In Western China

The phenomenon of "high savings and low consumption" among Chinese residents is prominent.Residents are concerned about the uncertainty of their future income and expenditure,and using funds for precautionary savings to reduce consumption is one of the important reasons for this phenomenon.How to promote residents’ consumption to stimulate domestic demand is the focus of concern of all sectors of society.Improving the social security level is one of the important measures to boost consumption.As an important part of the social security system,commercial personal insurance plays an important role in alleviating people’s uncertainty about their future income and expenditure,reducing precautionary savings,promoting residents’ consumption and optimizing the consumption structure.The western region is vast,affected by a variety of factors,the economic development is slow.A sound social security system will help unleash the consumption potential and optimize the household consumption structure.Under the background of expanding domestic demand in China,it is of practical significance to study the impact of purchasing commercial personal insurance on residents’ consumption to solve the problem of weak consumption and promote the economic development in western China.In order to verify the influence and transmission mechanism of commercial personal insurance on residents’ consumption and consumption structure,this paper puts forward the research hypothesis according to the theories of insurance demand,precautionary savings,and the actual situation and previous research.In the 2017 and 2019(CHFS)the two-way fixed effect model is used to demonstrate the differentiated influence of commercial insurance in western China on the consumption and consumption structure,and use the tendency matching score method to alleviate the endogenous problems caused by self-selection,analyze the urban and rural dual background and different income levels;and use the intermediary effect to test the intermediary effect of income uncertainty in household consumption.The research results are as follows:(1)purchasing commercial personal insurance can improve residents’ consumption,development and enjoyment consumption,with no significant impact on subsistence consumption;the conclusion is still true after considering the endogenous problems caused by self-selection.Commercial life insurance is more in promoting consumption than commercial health insurance.(2)Compared with urban families,the purchase of commercial personal insurance by rural families can greatly release residents’ consumption.The purchase of commercial personal insurance by low-income families has a positive effect on residents ’consumption,while the purchase of commercial personal insurance by high-income families has no obvious effect on promoting residents’ consumption.(3)The purchase of commercial personal insurance can reduce the income uncertainty that residents will face in the future and reduce precautionary savings,thus increasing residents’ consumption and releasing their consumption potential.The following suggestions are put forward: strengthen the publicity of commercial personal insurance knowledge,improve the purchase rate of commercial personal insurance;deeply understand the demand of residents,innovate the product supply and optimize the service;the government departments should strengthen the supervision and regulate the development of the industry.