Empirical Analysis Of The Impact Of Demographic Changes On The Demand For Life Insurance In China

Since the reform and opening up,my country’s life insurance premium scale,life insurance depth and density have achieved tremendous growth,which is not only related to the rapid economic development,but also related to the huge changes in my country’s population structure,such as: family planning policy has led to a decline in the birth rate.The second batch of major baby boomers have entered the retirement age to accelerate the arrival of aging,urbanization has accelerated the flow of population,the family size has gradually become smaller and more cored,the state attaches importance to education,and the proportion of the population with higher education continues to rise.Different from the traditional literature,it analyzes the demand for life insurance from the perspective of the age structure of the population and family structure.According to the characteristics of my country’s population structure changes,the paper explores the relationship between the changes in my country’s population structure and the demand for life insurance based on the natural structure of the population,the geographical structure of the population,and the social structure of the population.First,the paper describes the demographic transition and the current development of life insurance in China.Secondly,it introduces the influence mechanism of the natural structure of the population,the social structure of the population,and the geographical structure of the population on the demand for life insurance in my country.Third,using the panel data of 31 provinces,autonomous regions,and municipalities in my country from 2008 to 2019,select the age structure from the natural structure of the population,select the education structure,marriage structure,and family structure from the social structure of the population,and select urban and rural areas from the geographical structure of the population,and construct a dynamic panel model for empirical analysis.The empirical results show that:（1）The average years of education,average household size,proportion of urban population,and old-age dependency ratio all have a significant positive impact on the demand for life insurance.The dependency ratio of children and the proportion of the population with a spouse have a not significant impact on the demand for life insurance.（2）The increase in per capital GDP will drive the growth of life insurance demand,and the increase in the proportion of the population participating in social pension insurance will lead to a decrease in the demand for life insurance.（3）The age structure and urban-rural structure in the population structure have the greatest impact on the demand for life insurance,and the purchasing habits of life insurance also have a greater positive impact on the demand for life insurance.Finally,according to the research results,the government should improve the demographic structure related policies and insurance companies should adjust the life insurance market development strategy to provide specific countermeasures for the development of my country’s life insurance industry.