Study Of The Influence Of Family Age Structure On The Commercial Life Insurance Demand

Along with the footsteps of reform and opening up,the insurance industry of China has been operating for more than 40 years since its resumption.In the context of rapid economic and social development,China’s insurance market has also achieved long-term rapid development,as evidenced by the increasing number of insurance market entities,increasingly diversified product types,and the continuous and rapid expansion of premium income scale,and the insurance industry has become an essential part of the national economy.At present,life insurance business occupies the largest market share in China’s insurance market.By of the end of 2020,the original premium income of life insurance in China exceeded 333.29 billion yuan,among which the premium income of life insurance business is substantially higher than that of other insurance types,totaling 239.82 billion yuan,the original premium income of health insurance totalled 817.3 billion yuan,and the original premium income of accident insurance totalled 117.4 billion yuan.As an important supplement to social security,life insurance has provided solid protection for China’s resident families.At the same time,with the full implementation of the family planning policy in 1982 and the change in the fertility philosophy of families,China gradually showed a low birth rate and low mortality rate,which led to a decreasing proportion of young children and a steady increase in the proportion of elderly people.In order to cope with the serious trend of less children and aging in our country,the "separate two-child" policy was adopted in November 2013,after a two-year transition period,the Fifth Plenary Session of the 18 th Central Committee adopted a "comprehensive two-child" policy in October 2015,which indicates that China has further relaxed its control on fertility.In the intervening decades,the age structure of China’s population has undergone a major shift.Since the subject matter of life insurance is human body and life,and the age structure of the population is directly related to the subject matter of life insurance,the change in the age structure of China’s population will definitely affect the demand for life insurance by residents,and will also profoundly affect the development of the life insurance market.This study is divided into five parts.Firstly,the background and significance of this paper are introduced,and the factors affecting the demand for commercial life insurance are summarized based on domestic and foreign literature,and then the research content and methodology of this paper are clarified.Secondly,some concepts and theoretical foundations mainly involved in this paper are explained,and the mechanism of the effect of household age structure on the demand for commercial life insurance is analyzed at the theoretical level to provide a theoretical basis for this paper.Again,the current situation of population age structure and demand for life insurance in China is analyzed based on macro data.Finally,this paper empirically analyzes the relationship between the age structure of household population and the demand for commercial life insurance with the help of Probit model,and obtains the following main conclusions: the age of household head and the demand for commercial life insurance show an inverted U-shaped relationship that increases first and then decreases,and the peak age is between 35 and 44 years old;the demand for commercial life insurance is lower in households with a higher proportion of elderly people,while the demand for commercial life insurance is higher in households with a higher proportion of children.Families with a higher proportion of children and teenagers tend to hold commercial life insurance;households with different urban and rural areas,income levels,and education levels have different levels of demand for commercial life insurance.Based on the research findings,this paper proposes corresponding policy recommendations based on the perspectives of insurance companies,government departments and households respectively,hoping that this will help life insurance to better perform its risk protection function and promote the healthy and sustainable development of China’s life insurance industry.