| Commercial insurance is an important supplement to social insurance.As a financial product that can guarantee the future,insurance has gradually become the choice of more and more families,including rural families.Service rural revitalization,insurance is promising.The term "insurance" appeared nine times in the No.1 central document in 2021,and the 20th National Congress of the Party in 2022 also mentioned the need to improve the rural financial service system.The complex insurance market requires residents to have strong financial literacy.Financial literacy is an individual’s comprehensive literacy of financial knowledge,financial manner and financial skills.The improvement of financial literacy can effectively deal with risks and improve financial well-being.Therefore,it is of great significance to conduct in-depth research on the participation behavior and participation of rural family commercial insurance to promote the healthy and stable development of the insurance market and help rural revitalization.Firstly,this paper combs the existing domestic and foreign literature and defines the concept of financial literacy and commercial insurance.The theoretical mechanism of financial literacy affecting rural families’ participation in commercial insurance is analyzed based on human capital theory,family finance theory,lasting income hypothesis,life cycle hypothesis,insurance utility theory,mental account theory,asset portfolio theory and other theories.Secondly,the data of China Household Finance Survey 2019(CHFS)is used.A financial literacy evaluation system was constructed by selecting six indicators from three aspects:financial knowledge,financial manner and financial technology ability.Taking rural household heads as the research object,factor analysis was used to calculate the financial literacy of household heads.A research hypothesis was put forward to empirically study the influence of financial literacy on rural households’ participation in commercial insurance.Probit model and Tobit model were used to study its influence on participation behavior and participation depth respectively.Finally,robustness test was conducted by replacing different variables,and endogeneity test was matched by instrumental variables and propensity scores.Heterogeneity analysis was conducted among rural families with different ages,different incomes and different areas,and mecnamsm test of income mechanism and risk attitude mechanism was conducted by using the mediation effect model.The results show that:(1)Rural household heads lack financial literacy,and their willingness to participate in commercial insurance and premium expenditure are not high.(2)From the benchmark regression,financial literacy of commercial insurance in rural households behavior have a significant role;Financial literacy plays a significant role in promoting the participation depth of rural households in commercial insurance,which is reflected in the proportion of total premium expenditure and commercial insurance premium expenditure to total income.(3)From the mechanism analysis,the influence of financial literacy on rural family commercial insurance participation behavior includes income mechanism and risk attitude mechanism.(4)From the heterogeneity analysis,Financial literacy of commercial insurance in rural households in high-income families,families in east and northeast,head of the household for promoting effect is more obvious in young and middle-aged family.(5)From the control variables,total household assets,level of education and age could significantly increase family business insurance purchase.Based on research conclusions,This paper proposes to strengthen education to enhance residents’ financial literacy;Popularize financial knowledge and enhance risk tolerance;Pay attention to different needs and innovate insurance products and services;Strengthen economic construction and improve family income;Standardize market order and promote the development of inclusive insurance. |
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