Study Of The Impact Of Medical Insurance On Family Asset Allocation

In recent years,the wealth of Chinese families has risen sharply with the rapid development of China’s economy.As the foundation of social economic,families are playing an increasingly important role in the development of Chinese financial market.However,the savings rate of Chinese households has remained high.The existence of high savings rate and low risk asset allocation rate is ubiquitous in Chinese families.On the one hand,it is not conducive to the increase in the wealth of residents,which leads to the further expansion of wealth differences.On the other hand,the inability to effectively convert part of the savings into venture capital investment is not conducive to the development of China’s capital market.The reason for this phenomenon is probably that Chinese families are less able to withstand risks.In recent years,the proportion of medical expenses to total household expenditure has continued to rise.Medical insurance can effectively reduce the uncertainty of medical expenses,which may expand the family’s risk exposure,so that households can transfer assets from risk-free preventive savings to risk financial assets and optimize household assets structure.Therefore,the study of the impact of medical insurance on household asset allocation has important practical significance.Correctly understanding the role of medical insurance in the allocation of family assets in China and scientifically guiding residents to make economic investments can not only help the improvement of the wealth level of our residents,but also promote the development of social economy.This paper uses a combination of theoretical analysis and empirical research.In terms of theoretical analysis,this paper reviews the existing literature and research results,expounds the main factors affecting the choice of household assets investment methods,and analyzes the current situation of China’s medical insurance and family asset allocation methods.In terms of empirical research,based on the 2013 CHFS survey data,this paper uses Probit and Tobit models to study the impact of medical insurance on urban and rural household asset investment methods.Under the coverage of medical insurance,the uncertainty of family medical risks is reduced,the future medical burden is reduced,and the risk exposure is narrowed.This will encourage families to adjust their investment in household assets to match the family’s risk tolerance.After reducing the risk of household expenditure,medical insurance can effectively promote the family and family assets structure.Based on the results of empirical research,this paper gives some suggestions.Firstly,improve the universal medical insurance system.Establish a multi-level medical security system.Incorporate commercial medical insurance into the security system and encourage employers to purchase supplementary medical insurance for employees.Secondly,build a unified urban and rural medical insurance system.Guarantee the fairness of the universal health insurance system.Finally,promote the reform of the rural financial system.Provide more abundant investment channels for rural residents’ asset investment and narrow the wealth difference between urban and rural areas.