The Effect Of Education Level On House-Hold Demand For Commercial Insurance

Commercial insurance,which not only plays a special role in maintaining China’s economic development but also is of great significance to maintain social stability and people’s happiness,is the most important supplementary part of the social security system.Since the 21st century,China’s commercial insurance industry has shown a trend of rapid growth and development.The original insurance premium income continues to grow rapidly,and the number of insurance institutions is also increasing.However,China’s insurance density and insurance depth still have gaps comparing with the world average level.Commercial insurance is purchased on a family basis.Therefore,taking the micro family as the research object and deeply exploring the influencing factors affecting the demand for household commercial insurance are meaningful to the development of commercial insurance in China.This paper uses the data of China Household Finance Survey(CHFS)in 2017,Probit model and Tobit model to analyze the impact of education level on China’s household commercial insurance demand.Firstly,this paper uses Probit model to study whether different education levels can be a factor for families to purchase commercial insurance.Secondly,this paper uses Tobit model to study the impact of education level on the proportion of household commercial insurance premium in total family income.Finally,the paper uses the samples grouped according to urban and rural areas,income level,age stage and region to analyze the impact of education level on the needs of families in different situations.The empirical results show that:(1)education level is positively correlated with household commercial insurance demand.That is to say,the higher the education level is,the stronger the demand for household commercial insurance is;(2)the higher education level is,the higher the proportion of household commercial insurance premium in total family income is;(3)with the improvement of education level,the growth rate of commercial insurance demand in urban families is higher than that of commercial insurance demand in rural families;(4)with the improvement of education level,the increasing degree of family commercial insurance demand is different in different regions.The central region is the most obvious,the western region is the second,and the eastern region has the least impact;(5)with the improvement of education level,the higher income families are more willing to buy commercial insurance than low-income families.However,the marginal effect of the proportion of premium expenditure in total household income is that high-income families are lower than low-income families.According to the above conclusions,this paper puts forward policy suggestions from the perspective of the government and insurance companies to jointly promote the demand for household insurance so as to improve the development level of the insurance industry in China.