Research On The Influence Of Financial Literacy On The Investment Decision Of Family Commercial Insurance

With the rapid development of China’s commercial insurance market,the awareness of family investment in commercial insurance to obtain their own property and health insurance is becoming stronger and stronger.However,in practice,the current situation of family participation in commercial insurance investment in China is still not optimistic.In order to solve the problem of limited participation in family business insurance,relevant scholars mainly explain the problem from the aspects of education,age,income and so on.However,with the continuous emergence of financial literacy in the field of family finance in recent years,some scholars have begun to explore the financial behavior of families from the perspective of financial literacy.Therefore,based on the research of existing scholars,this paper attempts to analyze the relationship between financial literacy and investment possibility,investment expenditure and investment preference of different types of insurance from the perspective of financial literacy.Firstly,based on the theories of family finance,financial socialization and the hypothesis of long-term income and life cycle,this paper analyzes the three transmission mechanisms of financial literacy influencing the investment decision-making of commercial insurance,which are income mechanism,risk attitude mechanism and social interaction mechanism.Then,based on the data of China Household Financial Survey(chfs)in 2013,this paper constructs the financial literacy index by combining residents’ financial knowledge,their attention to daily economy and financial information,and their allocation of financial assets.Finally,probit and Tobit models are used to test the impact of financial literacy on the possibility of family commercial insurance investment,investment expenditure and preference for different types of insurance.The empirical results show that:(1)the financial literacy of Chinese residents is generally low,and the participation rate of family commercial insurance is low;(2)there is a significant positive correlation between financial literacy and the possibility of family commercial insurance investment,the cost of expenditure and the proportion of investment expenditure in income;(3)compared with commercial property insurance,residents with high financial literacy are more willing to invest in commercial health insurance and commercial insurance Industrial life insurance.