What Does Health Insurances’ Impact On The Household Risk Financial Assets Allocation

With the continuous improvement of residents’ income levels in Chinese mainland,the attention of all sectors of society to the allocation of household financial assets has gradually increased.For households,a more reasonable allocation of risky financial assets means an increase in household income,and it can also promote the households’ ability to resist the potential risks in the future;for the financial market,a more reasonable allocation of household risky financial assets represents more balanced market structure;for the government,a more reasonable allocation of household risk financial assets represents the broadening of the sources of residents’ income sources.This paper mainly studies from the perspective of micro-subjects on how the purchase of commercial health insurance affects the choice of risk assets in household finance.Using the three-year CHFS micro-data in 2015,2017,and 2019,the following two questions are studied.First,this paper studies the impact of holding commercial health insurance on whether households enter the risky financial market uses the Probit model for analysis,and conducts robustness and heterogeneity tests;second,this paper studies holding commercial health insurance’s influence on the proportion of household risky financial assets,and test it with the Tobit model.The main explanatory variable of this paper is whether the family holds commercial health insurance,and the main explanatory variables are whether the family participates the risky financial market,the proportion of the risky financial asset,the types of risky assets,etc.On this basis,this paper also conducts heterogeneity and robustness tests.Finally,this paper draws the following conclusions: First,commercial health insurance promotes household participation in risky financial markets.Among them,investors’ risk appetite and their interest in financial attention have the highest marginal contribution rates.Second,holding commercial medical insurance,critical illness insurance,income protection insurance,and long-term care insurance can promote households to hold risky financial assets.From the perspective of marginal utility,purchasing critical illness insurance has the greatest marginal impact on households’ holding risky financial assets;purchasing medical insurance has the second-highest marginal efficiency.Third,with the reduction of risk appetite,the possibility of purchasing risky financial products gradually decreases.For those with high-risk preferences,purchasing commercial health insurance will increase their probability of purchasing risky financial products by 13.5%;correspondingly,purchasing commercial health insurance for residents with medium risk preferences will increase their probability of purchasing risky financial products by 11.5%.Those with a low-risk appetite only increased by 9.27%.Fourth,as the value of human capital decreases,the possibility of purchasing risky financial products gradually decreases.For people with high human capital value,purchasing commercial health insurance will increase their probability of purchasing risky financial products by 16.7%;correspondingly,the purchase of commercial health insurance by residents with medium risk preference will increase their probability of purchasing risky financial products by 11.9%,the low-risk appetite only increased by 6.41%.Fifth,holding commercial health insurance promotes the holding of assets in both the stock market and the fund market,but holding commercial health insurance has a greater effect on the stock market.Sixth,compared with different age groups,the purchase of commercial health insurance by the elderly population will lead to less investment in risky financial assets;the impact of income on the allocation of risky financial assets after the purchase of commercial health insurance by middle-aged groups is the greatest;the degree of attention to finance has the greatest impact on the allocation of risky financial assets after the purchase of commercial health insurance by young people.