An Empirical Analysis Of The Impact Of Family Characteristics On Life Insurance Demand ——Based On HLM Model

In recent years,China's insurance industry has been developing with each passing day.China's premium income ranks second in the world,meanwhile,compared with the United States and other countries with more mature markets,there is still a big gap in insurance density and insurance depth.Therefore,it is still a meaningful subject to study the factors affecting insurance demand to promote the development of insurance industry.As a basic unit of society,"family" is an important object to study basic social activities and also the subject of insurance consumption.Therefore,it is of practical significance to study the different insurance demands of families with different characteristics.On the one hand,every family has different needs for life insurance due to different basic characteristics such as age,gender and household registration category.On the other hand,family's income will affect the demand for life insurance directly,meanwhile,it will indirectly affect the demand by affecting the consumption level,asset level and other family characteristics.Therefore,family income is a more influential family characteristic.As this situation,this paper conducts regression analysis based on the data of China Household Finance Survey(CHFS)in 2019 through a two-level HLM model.Firstly,age,gender and other explanatory variables that do not affect other variables are regarded as low-level variables,and their regression equation of life insurance demand is regarded as low-level equation.Secondly,household income,which affects consumption and assets,is taken as a high-level explanatory variable.The slope and intercept in the lower-level equation are taken as the high-level explained variables for regression,which can help to analyze the impact of each variable on the demand under the comprehensive effect.Main conclusions of the empirical analysis are as follows:(1)There is an inverted U relationship between age and insurance demand.Men's demand for insurance is stronger than women's.The degree of health self-assessment is positively correlated with the demand for life insurance.The higher the risk aversion,the lower the insurance participation rate.The insurance demand of urban residents is greater than that of rural residents.(2)Both the total household consumption and the value of risky financial assets can stimulate the demand for life insurance,and the impact intensity will be more obvious with the growth of people's income.(3)Fixed assets have crowding out effect on life insurance,and this effect will not be alleviated when residents' income further increases in the future.According to the research conclusions of this paper,it is suggested that the government should pay more attention to the matching of the development degree of insurance market with residents' income level and consumption ability improvement degree.For insurance companies,they should to strengthen the pertinence of exhibition target groups and product design.And consumers should enhance health attention and identify risks according to family characteristics.