The Impact Of Family Commercial Insurance On Family Happiness

With the deepening of reform and opening up,China has become the world’s second largest economy,the rapid growth of the national economy and the continuous advancement of industrialization have significantly improved the quality of people’s life and social welfare,and the people’s happiness level has gradually received widespread attention,which is not only related to the people’s happiness and well-being,but also related to the long-term peace and stability of the party and the country,so the party and the government attach great importance to the construction and improvement of the social security system.In this context,the low level of social insurance risk protection and the limitations of the existence of security online gradually appeared,especially when major risks occur in the family and major losses are incurred as a result,the shortcomings of social insurance become more and more obvious,making the people’s demand for commercial insurance increasingly strong.As one of the pillars of the social security system,commercial insurance shoulders a key role in improving the social security system,building a solid foundation for people’s livelihood protection,and preventing major risks.However,due to the short history of the development of commercial insurance in China and the lack of in-depth and systematic understanding of commercial insurance by the public,the relationship between commercial insurance and happiness has not attracted widespread attention from the academic community compared with the basic role played by social insurance in improving happiness.Therefore,it is very important to study the impact of family commercial insurance on family happiness,whether from the perspective of the commercial insurance industry or the improvement of family happiness.In order to further study the influence of family commercial insurance on family happiness,based on expected utility theory,prospect theory and Maslow’s hierarchy of needs theory,this thesis further discusses the mediating effect of family risk financial assets and the moderating effect of social interaction on the basis of studying the mechanism of family commercial insurance on family happiness level.First,after households purchase commercial insurance,their risk loss tolerance increases,and their assets invested in risky financial markets increase;Secondly,family members can enjoy the dividends brought by economic and financial development through the allocation of financial assets,obtain windfall wealth,and then improve the level of family happiness.Finally,family participation in commercial insurance will increase the attention to the commercial insurance market,so social interaction variables play a regulating role in the process of family commercial insurance affecting family happiness.In terms of the empirical model,the empirical evidence is divided into five parts,firstly,the Probit model is used to analyze the impact of the breadth of household commercial insurance participation on household happiness,secondly,the results of the previous empirical step of the Logit model are tested for robustness,and then the "commercial insurance participation rate" is used as an instrumental variable to conduct an endogenous study using the IV Probit model.This is followed by an endogeneity test using the IV Probit model as an instrumental variable,followed by a mediating effect test on the extent of household participation in risky financial assets and a moderating effect test on social interactions,and finally a heterogeneity test on the effect of household business insurance on household wellbeing by risk attitude,household income,urban/rural and age.In terms of empirical results,this thesis uses CHFS(2019)as the data source,and empirically concludes through the above empirical model that the purchase of commercial insurance by households can have a positive impact on the level of household happiness,among which the purchase of life insurance can significantly increase the level of household happiness,but property insurance does not have a significant impact on the level of household happiness.Robustness tests also confirmed the robustness and reliability of the results of this analysis.The endogeneity test using the participation rate of commercial insurance as an instrumental variable shows that there is no endogeneity problem,further supporting the conclusion that household participation in commercial insurance can increase the level of household happiness.Through the mediation effect,this thesis finds that household risky financial assets play a mediating role in the process of household business insurance affecting household happiness.The results of the moderating effect test show that there is a moderating effect of social interaction in the mechanism of family commercial insurance affecting family happiness,and it is a direct moderating effect.In the heterogeneity test,household participation in commercial insurance significantly increases the level of risk averse well-being;while for middle-income households,commercial insurance has a significant positive effect on the level of household well-being,for high-income households and low-income households,commercial insurance does not have a significant effect on household well-being.For rural households,there is a significant increase in the level of well-being after the purchase of commercial insurance for rural households.For young and middle-aged households,the purchase of commercial insurance by households can have a significant impact on the increase in the level of household happiness,but commercial insurance for households does not have a significant impact on the level of happiness of older households.