The Impact Of Purchasing Commercial Health Insurance On Household Risk Financial Assets

With the development of China’s economy and the continuous increase of family income,families have become an important participant in China’s capital and financial market.The rationality of family asset allocation is not only related to the stability of residents’ family life,but also to the stability of China’s overall socio-economic operation.However,there is still a serious "riddle of limited participation" in China’s financial market.According to the survey data of the China Household Finance Survey(CHFS)2019,Chinese families’ asset allocation is too simple.Most households’ financial assets are mainly cash and deposits,and few households allocate risky financial assets,which is not conducive to the appreciation and maintenance of family assets.In the existing research on the allocation of family risk financial assets,most of them start from the perspective of family income,risk attitude,etc.,and few studies start from the perspective of commercial health insurance.As an effective tool for families to manage health risks,commercial health insurance is conducive to reducing family medical expenses,reducing preventive savings,strengthening family security of life,and thus affecting the allocation of family risk financial assets.In this context,this paper studies the impact of family a cquire Commercial Health Insurance on the allocation of family risk financial assets.By reviewing the relevant literature at home and abroad,this paper defines the concepts of commercial health insurance and risk financial assets.Based on the theories of modern asset portfolio and preventive savings,this paper studies the impact of family The purchase of commercial health insurance on distribution of household risk financial assets,and discusses the intermediary effect of financial literacy and the adjustment effect of family income.First of all,after purchasing commercial health insurance,families can reduce the risk of family preventive savings and medical expenses,which makes households have more money to participate in risky financial markets;Secondly,commercial health insurance can also improve the financial literacy of families,and the improvement of financial literacy can also promote families to participate in the risk financial market.Finally,because family income also has a great impact on the allocation of family risk financial assets,family income may play a regulatory role in the process of commercial health insurance affecting the allocation of family risk financial assets.In terms of empirical model,this paper uses Probit and Tobit models to test the impact of household purchase of commercial health insurance on the possibility and depth of household allocation of risky financial assets,and analyzes the heterogeneity according to the different areas of households,family net assets,family risk attitudes,etc.Then,according to the test methods of intermediary effect and regulatory effect,we test the intermediary effect of financial literacy and the direct and indirect regulatory effect of family income.Finally,considering the problem of model endogeneity,use the instrumental variables approach to solving endogeneity problems of the model by using IVProbit and IVTobit models.As for the empirical results,based on the data from the China Financial Survey of Households.in 2019,this paper found that the purchase of commercial health insurance by families can not only directly affect the allocation of family risk financial assets,but also affect the allocation of family risk financial assets by affecting family financial literacy.Families with higher commercial health insurance and financial literacy are more likely to hold risky financial assets,and the proportion of risky financial assets in household financial assets is also higher.Through the heterogeneity analysis,it is found that the possibility of holding risky financial assets by urban families,high-net worth families,risk-averse families and families with low education is more affected by commercial health insurance.The ratio of risky financial investments in the pockets of urban households,low net worth households,risk preference households and highly educated households is more affected by commercial health insurance.Family income also plays a regulatory role in the process of commercial health insurance affecting the allocation of family risk financial assets.Family income negatively regulates the direct effect of commercial health insurance and the indirect effect of financial literacy.The lower the income of families,the greater the direct effect of commercial health insurance and the indirect effect of financial literacy.