The Impact Of Social Networks On Family Business Life Insurance Participation

In recent years,China’s economic development continues to improve,people’s living standards are improving day by day,the majority of residents of the consumer’s consumption concept and security awareness gradually enhanced,a single social insurance has been unable to meet the needs of people’s life,commercial life insurance is gradually becoming a high quality of life necessities.The continuous deepening of population aging has brought about more complex elderly care and health needs.The current social security system cannot fully meet the diverse needs of the people.With the improvement of the level of medical care services and the gradual increase in the average life expectancy of residents,commercial life insurance is increasing.The role of satisfying residents’ health,old-age care,and safety protection has become increasingly prominent,which has a positive impact on the aging of the population and the implementation of a healthy China strategy.In recent years,the functions of commercial life insurance products have continued to expand.They have multiple functions of protection,savings and investment.They are an effective tool for families to respond to risk shocks and become an important area of serving the people’s livelihood.In particular,the government has issued a series of policy documents to regulate the life insurance market.Innovative development is conducive to giving full play to the social stabilizer and economic booster functions of insurance.Regarding the influencing factors of commercial life insurance participation,the existing literature at home and abroad has conducted in-depth research on economic factors,demographic characteristics,subjective attitudes,Internet use,etc.,and paid less attention to social factors.This thesis studies the impact of social network,a social factor,on commercial life insurance participation from a micro level,and analyzes the intermediary channels through which social networks affect commercial life insurance participation.The data used is the 2017 China Household Finance Survey data,based on relevant literature and theory.The empirical analysis mainly uses the Probit model and the Tobit model.The empirical results show that social networks have a significant role in promoting the possibility and degree of participation in commercial life insurance.This thesis conducts regression analysis according to the sub-samples of household income,age,and region.The results show that social networks have significant heterogeneity in the participation of commercial life insurance in terms of household income,age,and region,which promotes high-income families.The effect is greater than that of low-income families.It has a significant role in promoting low-age families.It has a significant effect in the eastern region.The impact is not significant in the central and western regions.It has a positive impact on both low-level and high-level families.In addition,this thesis uses the intermediary effect model to verify that social networks can promote household participation in commercial life insurance by increasing residents’ attention to economic and financial information,alleviating liquidity constraints,and reducing household savings rates.On the basis of the above conclusions,this article proposes that in order to promote the development of the commercial life insurance market and increase participation in life insurance,attention should be paid to the social characteristics of households,making full use of the social characteristics of relationship based on kinship,and reducing information transaction costs.Help residents expand information channels,continuously improve consumer credit services,strengthen the popularization of economic and financial knowledge,improve residents’ financial literacy,and increase the proportion of commercial life insurance in household asset allocation.