A Research On The Impact Of Commercial Medical Insurance On Household Consumption In China

With the transformation of China’s economic development model,the position of national consumption in stimulating economic growth has become increasingly prominent,becoming the first driving force for economic growth.As of the end of 2018,the contribution rate of final consumption to economic growth was as high as 76.2%,an increase of 17.4 percentage points compared with the previous year.It can be seen that the driving force of consumption to stimulate economic growth cannot be replaced by other needs.However,China’s consumption rate has exceeded 62% in the 1980 s,but it has been declining for a long time.After 2010,there has been a small increase,from 35% to 39% at the end of 2017.In the past seven years,it has increased by 4 percentage points,with an average annual growth rate of 0.57 percentage points.There is still a big gap compared with the world average consumption rate of 78%-79%.In the final consumption,household consumption accounts for about 80% of the total consumption.To increase China’s consumption rate,it is necessary to increase the household consumption rate.This is the best way to solve the problem of insufficient domestic demand.Therefore,we should speed up the improvement of the consumption structure of residents and promote the growth of household consumption rate.As residents’ recognition of commercial insurance increases,the impact of commercial insurance on household consumption increases.It is predicted that by 2020,the growth rate of low-end commercial medical insurance will gradually slow down,because low-end commercial medical insurance can no longer meet the insurance protection needs of residents,so the average annual growth rate is 40%.In comparison,the demand for mid-to high-end commercial medical insurance will surge,and the average annual growth rate will increase substantially,and is expected to reach more than 50%.Commercial medical insurance has become an indispensable part of the household asset allocation,affecting the consumption structure and consumption level of households.In this context,it is particularly important to study the impact of commercial medical insurance on household consumption.It can not only optimize the consumption structure of residents,but also promote the growth of household consumption rate,thus stimulating economic growth.The logical thinking of this paper is based on "literature reading analysis-basic theoretical analysis-empirical analysis-policy recommendations".On the basis of a large amount of literature reading analysis,combined with the demand theory of commercial medical insurance,preventive savings theory and consumer behavior theory,the direction and influence degree of commercial medical insurance on residents’ consumption and structure are discussed.The parper uses the data of the China Comprehensive Social Survey Micro Database(CGSS)for empirical analysis.Using the method of tool variables to solve the problem of model endogeneity.According to the classification of household consumption and the degree of easy access to data in the selected database,several types of insurance consumer expenditure subdivisions are combined to form a large category of consumer expenditure,and the impact of commercial medical insurance on these categories of consumer expenditure is explored.The basic research contents and main research conclusions of this paper are as follows:First,a theoretical analysis of the impact of commercial medical insurance on household consumption.Through the demand theory of commercial medical insurance and the theory of preventive savings,the paper analyzes the path of commercial medical insurance to the consumption of residents.The purchase of commercial medical insurance is determined by demand,and the purchase decision is a complex decision-making process.Consumers will consider maximizing benefits and using commercial health insurance to transfer their own risk of high medical costs.Commercial medical insurance is to reduce the uncertainty of consumers’ future income and reduce their psychological expectations of future risk concerns.Thus,reducing preventive savings,increasing people’s current propensity to consume,and having a positive effect on consumption.Secondly,it is an empirical analysis of the impact of commercial medical insurance on household consumption.Through empirical research and analysis,it is tested whether the direction and influence of commercial medical insurance on household consumption is consistent with the theoretical analysis.The study concluded that commercial medical insurance has a significant positive effect on the various consumption and consumption patterns of Chinese households;The purchase of commercial medical insurance can promote the household consumption of rural residents;commercial medical insurance can promote the optimization and upgrading of the consumption structure.Finally,propose relevant policy recommendations.In order to promote the growth of household consumption rates,promote the consumption rate of residents,stimulate domestic demand,and promote the development of China’s economy.Based on the conclusions of the research analysis,this paper proposes the following policy recommendations.First,improve the universal closeness of middle and high-end commercial medical insurance,reduce residents’ expected high medical expenses savings,and appropriately increase non-essential consumption.Second,speed up rural commercial construction,expand the rural residents’ wealth income channels,and stimulate rural economic growth.On this basis,increase the consumption channels of rural residents,advocate the healthy consumption of rural residents,and let commercial medical insurance consume positively for rural residents.Maximize the promotion as much as possible.Third,the introduction of certain tax incentives,promote the development of commercial insurance,increase the investment in basic medical service facilities,and meet the basic medical security needs of residents.Fourth,increase the promotion of commercial medical insurance,increase the participation rate of commercial medical insurance,and enhance the awareness of risk prevention and commercial medical security for urban and rural residents.