The Analysis To The Influence Of Air Pollution On Life Insurance Demand

With the continuous occurrence of haze weather,the problem of air pollution has attracted more and more attention.Air pollutants will harm people's health and have an impact on people's life span.Life insurance takes people's life as the subject matter of insurance to prevent such risks.In order to explore whether air pollution will affect the demand for life insurance,the data were collected and then combined with the corresponding model for quantitative analysis.Based on official data,published by China environmental monitoring website,China banking and insurance regulatory commission and China statistical yearbook,a total of 48months'data of 31 provinces from 2014 to 2017 were collected in consideration of the change of air pollution with each month.Moreover,PM_2.5,PM₁₀,CO,SO₂,NO₂and O₃,the monitored pollutant indexes,were taken as explanatory variables,and the per capita original premium income of life insurance was taken as the explanatory variable to measure the demand for life insurance.In addition,according to the literature review,it is found that the demand for life insurance is affected by economic factors,health factors and education level.Therefore,per capita GDP,mortality rate and the number of people with college degree or above are selected as control variables to analyze the impact of air pollution on the demand for life insurance.In the model part,since the data used are panel data,it is necessary to select an appropriate panel data model for analysis and optimize the model through a series of tests.The econometric analysis tools used are R software and SPSS software.Considering the complexity of the composition of air pollutants,the paper firstly analyzes the impact of single pollutant on the demand for life insurance under the influence of controlling economic factors,health factors and education level.Through empirical analysis,it is found that the change of PM_2.5,PM₁₀,CO,SO₂,NO₂ and O₃ in concentration will significantly affect the demand for life insurance.Then it analyzes the impact of six air pollutants on life insurance demand,but draws a conclusion inconsistent with reality.Considering the possibility of multicollinearity among various pollutants,the principal component analysis method was used to optimize the model and remove the multicollinearity among variables before conducting empirical analysis.Finally,the results show that its conclusions are consistent with a single case of pollutants in front when considering multiple pollution index.In other words,PM_2.5,PM₁₀,CO,SO₂,NO₂ and O₃,all have a significant impact on life insurance demand.Among them,PM_2.5,PM₁₀,CO,SO₂ and NO₂ are positively correlated with life insurance demand,while O₃ is negatively correlated with life insurance demand.In addition,per capita GDP has a significant impact on life insurance demand,but education level and mortality have no significant impact on life insurance demand.