Research On The Influence Of Social Interaction On Household Commercial Insurance Participation Behavior

The development of commercial insurance has great necessity,urgency and importance for providing people with more perfect risk protection,reducing the pressure of social security expenditure,improving the multi-level social security system.In our country,which attaches great importance to social relations,it is of great theoretical and practical significance to explore the social interaction factors that affect the family commercial insurance.Based on the data of China Household Finance Survey(CHFS)in 2019,this thesis uses Probit model to empirically test the impact of social interaction on household commercial insurance participation.The results show that social interaction has a positive effect on family commercial insurance participation.For every 1% increase in the level of social interaction,the probability of commercial insurance participation increases by 4.7%.Social interaction affects household commercial insurance participation behavior through the intermediary role of financial literacy.This promotion effect is relatively stronger in urban areas and non-first-tier cities,and decreases with the increase of age and income.After conducting instrumental variable endogeneity tests and two robustness tests,the conclusion remains significant.Based on the research findings,this thesis propose corresponding policy recommendations for government departments,insurance companies,and households.For government departments,it is recommended to create a good social environment and atmosphere,and increase the promotion of financial and insurance knowledge,strengthen the integrity construction of the insurance industry.For insurance companies,it is recommended to strengthen the construction of social community and social media operation,increase consumer’s financial and insurance knowledge and understanding and trust in insurance.For households,it is recommended to strengthen social interaction with family and friends,while enhancing their own financial and insurance literacy level,selecting reputable insurance companies in the community to purchase commercial insurance.