Whether Commercial Medical Insurance Can Mitigate The Impact Of Health Shocks On Household Financial Asset Allocation

After the reform and opening up was proposed in the Third Plenary Session of the 11 th Central Committee of the CPC,China’s economy has taken off since then,and household wealth has been rising along with it.The development of the financial market also makes all kinds of financial products more abundant than before.The active participation and investment of households in risky financial assets not only contributes to the preservation and appreciation of property income,but also promotes the orderly development of the financial market and the smooth operation of the national economy.However,through relevant domestic literature research and official public data,it can be found that at present.the monooneness and irrationality of household financial asset allocation structure are very prominent in China.Previous studies have analyzed the reasons for this phenomenon from the perspective of population characteristics and wealth effect.but failed to fully explain the phenomenon.In recent years,after experiencing the COVID-19 pandemic,more and more people are fully aware of the significant impact of health risks on individuals and society.With the deepening of the aging population and the impact of various health risks,disease has become one of the most difficult problems for people to solve Serious health impacts will lead to a sharp increase in the medica expenses paid by residents’ families,consume alarge amount of family wealth,and thus affect the family’s asset allocation and investment choice to a certain extent.Therefore,some people will buy commercial medical insurance to transfer this risk.Based on this,this paperuses the questionnaire data of 2019 CHFS to integrate health shock commercial medical insurance and household financial asset allocation into the same framework to explore whether health shock will have adverse effects on household financial asset investment allocation.The special compensation nature of commercial medical insurance can alleviate the impact of health shock on family financial asset allocation to a certain extent after bearing part of the medical and hospital expenses of residents and improving their own health level? This is the concern of this paper.On the basis of theoretica analysis,this paper proposes a research hypothesis.Probit and Tobit models are used to explore the impact of two factors,family commercial medical insurance and health shock on the allocation of financial assets,and interactive terms are constructed to explore the mitigation effect of commercial medical insurance.Furthermore the sampleis divided into different groups according to urban and rural areas,gender,age and income.and the heterogeneity analysis is made.The findings are as folllows: firstly,health shock reduce shouseholds’ allocation of risky financial assets;Secondly,when health shocks have adverse effects on family financial asset allocation,commercial medical insurance can mitigate such adverse effects.Thirdly,the inhibitory effect of health shock on family financial asset allocation will vary significantly with different household registration of the household head.Fourth,by improving people’s health level,commercial medical insurance enhances their ability to resist health shocks,and thus plays a role in mitigating the adverse effects of health shocks on family financial asset allocation.The innovation of this paper is as follows:first the innovation of research perspective.Starting from the perspective of health status,this paper explores its impact on family financial asset allocation,and introduces commercial medical insurance on the basis of this research question,analyzes the role of insurance in this process.in order to further develop and improve commercial medical insurance.promote residents to cope with uncertain health risks and actively and reasonably invest,allocate family financial assets.It has a certain reference value:Second the innovation of research methods.In terms of the definition of health impact the self-reported health statusin the questionnaire survey is relatively subjective.In this paper,hospitalization and medical expenses are used to represent health impact,which makes the results more objective and persuasive.