Social Interaction,internet Channel And Household Commercial Insurance Consumption

China is the second largest insurance market in the world from the perspective of insurance premiums,but the development of commercial insurance in China is still in its infancy from the perspective of insurance density and insurance depth.The weak development of insurance industry in our country is mainly due to insufficient consumption of commercial insurance by households.Therefore,it is of great significance to study the factors that affect household commercial insurance consumption in our country from the perspective of the family,and to seek ways to increase household commercial insurance consumption.Since the commercial insurance market is a typical information asymmetric market,whether households can obtain relevant information is an important reason that affects commercial insurance consumption decisions.In today’s society,families mainly obtain insurance-related information through social interaction or other information channels such as the Internet,TV,and newspapers.In our country,the oral information exchange mechanism of social interaction plays a very important role in conveying information about the insurance market.At the same time,with the rapid development of the Internet,the impact of Internet channel has also been paid more and more attention.Both social interaction and Internet channel can affect families’ willingness and behavior to purchase commercial insurance by improving family financial literacy and reducing information costs.However,there are few literatures that simultaneously consider the impact of social interaction and Internet channel on household commercial insurance consumption and its mechanism from the perspective of information channels.In addition,there are few literatures to further consider the possible alternative role of these two information channels in influencing household commercial insurance consumption.Firstly,this paper analyzes the theoretical basis and mechanism of social interaction and Internet channel affecting household commercial insurance consumption.Secondly,it analyzes the current status of household information channel acquisition and commercial insurance development in our country.Thirdly,this paper uses the 2017 China Household Finance Survey data to empirically study the relationship between social interaction,Internet channel and household commercial insurance consumption.In the empirical research,firstly,this paper proposes four research hypotheses based on related theories,and then explains the data sources and variables,and conducts descriptive statistics.Secondly,this paper uses the Probit and Tobit models to study the impact of social interaction and Internet channel on the possibility and degree of participation in household commercial insurance.In order to ensure the robustness of the benchmark regression results,this paper conducts endogenous discussions and robustness tests.Thirdly,this paper empirically tests the mediating effects of household financial literacy on social interaction and Internet channel affecting household commercial insurance consumption,and further analyzes the interaction of these two information channels on commercial insurance consumption.Finally,this paper considers the different effects that may be produced by the heterogeneous characteristics of the family.The conclusions of this paper are as follows: Firstly,social interaction and Internet channel can promote household commercial insurance consumption.Secondly,the oral information exchange mechanism of social interaction is similar to the Internet channel.They are both information channels for transmitting insurance knowledge and insurance market-related information,and both can promote household commercial insurance consumption by improving family financial literacy.Thirdly,social interaction and Internet channel have a partial substitution effect in promoting household commercial insurance consumption,that is,as a traditional information channel,social interaction has been partially replaced by Internet channel in the Internet era.Finally,the impact of social interaction and Internet channel on household commercial insurance consumption is different due to the heterogeneous characteristics of households.The innovations of this paper are as follows: Firstly,this paper is innovative in the research perspective.This paper studies the impact of social interaction and Internet channel on household commercial insurance consumption from the perspective of information channels.In the past,most literature has only separately studied the influence of social interaction and the Internet on household commercial insurance consumption.In addition,this paper further studies the alternative relationship between these two information channels in promoting household commercial insurance consumption.Secondly,this paper is innovative in the research methods.In terms of variable measurement,this paper constructs social interaction and financial literacy through factor analysis.In terms of empirical analysis,this paper uses the mediation effect model to study the role of financial literacy in social interaction and Internet channel affecting household commercial insurance consumption.Then this paper further examines the interaction effects of these two information channels.