Research On The Influence Of Digital Inclusive Finance On Insurance Density

Inclusive finance is based on the demand for equal opportunities,with the goal of sustainable economic development,allowing more people to access comprehensive,effective,and affordable financial services.With the widespread application of digital technology,the development of digital inclusive finance in China has become increasingly rapid since 2021.Digital inclusive finance can improve the level of financial services,improve capital allocation efficiency and reduce costs,increase the availability of financial services,and enable the poor and small and medium-sized enterprises to enjoy financial services such as insurance.This article defines the concepts of digital inclusive finance and insurance density,and introduces the long tail theory and financial exclusion theory.Among them,for digital inclusive finance,this article defines its connotation,technological driving factors,and characteristics;Regarding insurance density,this article defines its connotation and measurement.The relevant theories introduce the long tail theory and financial exclusion theory.Based on theoretical analysis,this article adopts a time and individual bidirectional fixed effects model to study the impact of digital inclusive finance on insurance density.The research results indicate that there is a "positive U-shaped" nonlinear relationship between digital inclusive finance and insurance density.On the one hand,digital inclusive finance can increase insurance density because: firstly,digital inclusive finance can positively affect insurance density by promoting entrepreneurship;Secondly,digital inclusive finance can also have a positive impact on insurance density by directly affecting the income of low-income urban populations;Finally,by improving the availability of financial services,digital inclusive finance can also increase insurance density.On the other hand,digital inclusive finance may reduce insurance density due to the following reasons: firstly,digital inclusive finance provides people with more investment choices,leading to the diversion of funds for purchasing insurance,thereby reducing insurance density.Secondly,digital inclusive finance can effectively enhance the risk bearing capacity of enterprises,and the increase in risk bearing capacity of enterprises reduces their insurance demand and also reduces insurance density.The impact of these two positive and negative effects on the insurance density ultimately manifests as a "positive U-shaped" nonlinear relationship.In addition,the impact of digital inclusive finance on insurance density exhibits heterogeneity in the eastern,central,and western regions.The inflection point in the eastern region is to the right of the western region,while the inflection point in the western region is to the right of the central region.The values of the latter two are very close.In addition,in terms of heterogeneity between financially developed regions and financially underdeveloped regions,the turning point of financially developed regions is to the right of that of financially underdeveloped regions.Finally,based on the conclusions drawn from empirical research,this article provides some policy recommendations: based on the "positive U-shaped" nonlinear relationship between digital inclusive finance and insurance density,local governments need to introduce various measures to vigorously promote the development of digital inclusive finance,in order to quickly exceed the turning point and increase insurance density.Firstly,a differentiated development strategy should be implemented,and targeted digital inclusive finance should be carried out based on the actual situation of each region to narrow regional differences;Secondly,we need to increase the construction of digital inclusive finance in underdeveloped areas;Thirdly,we need to achieve a balance between digital inclusive financial services and financial supply capacity among regions;Fourth,enhance the service capabilities of digital inclusive finance,deepen financial supply side reform,and thereby increase insurance coverage.