Research On The Relationship Between Insurance Development And Subjective Well-being

With about three deceads of development,China’s insurance industry has made a great progress. Insurance density and insurance penetration continue to improve.Insurance industry played an irrepalceable role in building a harmonious society,through compensatory damages, financing and social management insurance enhance the national sense of happiness.This article uses the Chinese General Social Survey 2010 data to examine how the development of the National Insurance influences SWB.In the first part we introduce the concept of SWB from philosophy, psychology and economics point of view.Describe the SWB from utility theory,prospect theory and consumer surplus.Then briefly describe the basic function and operating mechanism of life insurance and property insurance industry,how the insurance industry enhance national SWB.Second, we selecte variables and build the model, using ordered probit model to give a empirical research on how the development of insurance influce SWB.The results show that the development of insurance has a positive influence on the SWB,the more it developed,the happier people felt.However we should recognize that though China’s life insurance industry,to some extent, have a positive impact on SWB, property insurance industry has less affecte due to the poor management and unresonable product structure.Finally,we give advices from the aspect of strengthen the government regulation,innovate the insurance production,pay more attention to consumer protection,strengthen the cooperation of commercial insurance and social insurance.