Research On The Impact Of Internet Usage On Household Commercial Insurance Purchases

Commercial insurance is an important part of Chinese financial system and social security system,playing an increasingly important role in boosting economic development and ensuring social stability.Although China has developed into the second largest commercial insurance market in the world,there is still a big gap between the insurance depth and density compared with developed countries.The overall development of commercial insurance is large but not strong,which doesn’t fit in with with social economy development and people’s needs for a better life.Insufficient acquisition of commercial insurance information and lack of finance and insurance knowledge are important reasons for the insufficient purchase of commercial insurance by households in China.Family financial literacy is closely related to the dissemination of financial insurance information and national finance and insurance education,and the Internet provides convenience for the transmission of finance and insurance information.With the rapid development of information technology,Internet usage is closely integrated with residents’ lives.People can reduce information costs and improve financial literacy by "touching the Internet",thereby stimulating and promoting households to purchase commercial insurance.Based on network effect theory,insurance demand theory,information-seeking theory,theory of reasoned action and psychological account theory,this thesis studies the impact of Internet usage on household commercial insurance purchases,and examines the channels of influence.First of all,by sorting out the current situation of Internet popularization and commercial insurance development in China,this thesis grasps their development trend of the integration from reality.Secondly,using the 2017 and 2019 CHFS survey data and the fixed effect model,this thesis empirically analyzes the impact of Internet usage on household commercial insurance purchases,and tests whether household financial literacy have a mediating effect on the impact mechanism.Furthermore,heterogeneous effects are tested from family characteristics of areas,income level,and educational level.Finally,the conclusions of the study are summarized,and relevant countermeasures and suggestions are put forward.Conclusions of this thesis: First,Internet usage significantly promotes household commercial insurance purchases.Second,financial literacy plays a mediating role in the process of Internet usage affecting purchases of households commercial insurance,in other words,Internet usage can promote the purchase of commercial insurance by improving household financial literacy.Third,there is a heterogeneous effect of Internet usage on household commercial insurance purchases,which is more pronounced in rural areas,lowincome and low-education households.Based on the research conclusions,this thesis puts forward targeted suggestions for promoting household commercial insurance purchases from the aspects of increasing construction investment to improve the coverage and penetration rate of the Internet,using the Internet to optimize the supply of commercial insurance services,and improving the level of national financial literacy.The innovation of this thesis is based on the perspective of information transmission,extending the influencing factors of commercial insurance purchases to the dimension of information acquisition,and verifying the mediating effect of financial literacy between Internet usage and household commercial insurance purchases.The research data selects the latest public CHFS2019 data,and constructs two-phase unbalanced panel data,which has a certain timeliness.The disadvantage is that the variable setting is limited,and the test of the influence mechanism has certain limitation,which needs to be further explored.