Analysis About Factors Influencing On The Demand Of China’s Commercial Health Insurance

Since 21 century, the government introduced some policies to support the development of commercial health insurance to establish its important place in multi-level medical security system. In order to make full use of policies, it’s necessary to research demand factors of commercial health insurance so that we can give advices to government and insurance companies to make more reasonable polices, which can improve the level of national health care and ease public financial burden.The methods of this paper are to begin of by trying to cite and expand the generalized insurance theory and model to commercial health insurance, comes up with some factors to empirical analysis, and then makes a Logit regression analysis with CHNS(China Health and Nutrition Survey)’s 2004, 2006, 2009 data to estimate how income, gender, schooling, social medical insurance, age, medical fee, physical exam, environment and occupation influence the demand for commercial health insurance. And some conclusions can be draw from the empirical analysis. Firstly, the motivation of insure for sons and daughter appeared in 2006 and 2009 which couldn’t be seen in 2004, this could reflect that parents paid more attention to their children and strengthened the insurance consciousness. Secondly, propitious selection existed in the health insurance markets manifested as people who care about their health will not only do more physical exercise but also insure themselves by buy health insurance. Thirdly, the factor of age inhibited in 2006 and 2009 but while it didn’t matter in 2004, by linking the fact of aging of population, we can know people lacked of consciousness of insure the olds. Fourthly, the more education people had, the stronger motivation of insure their health risk they had. Fifthly, the social medical insurance and the length of work didn’t influence much in 2004 and 2006 but they inhibited in 2009, and the influence of income reduced, by linking the fact of the fraction of coverage of the social medical insurance raised year by year, we can know that parts of the insure liabilities of social medical insurance and commercial health insurance overlapped so substitutional relation grew out of between these two kinds insurance. Sixthly, income influenced the demand of commercial health insurance in a inverted U-shape and the uncertainty of income could motivate people to insure themselves. Seventhly, women’s demand were bigger in 2004, but this difference disappeared gradually. Eighthly, environment pollution didn’t cause the demand.According to the conclusion, the suggestions to insurance companies made by this paper are designing more policies which not only can satisfy children’s and old people’s needs but also be different from the social medical insurance functionally; developing marketing strategies aim at highly educated customer; improving the level of invest with the companies’ capital. The suggestions to the government are letting insurance companies to participate the social medical insurance plans; relaxing restrictions about the investment of funds of insurance companies; improving information platform and legal construction. The suggestion to general public is being honest so that the policies holders and the insurers can attain mutual success.