The Impact Of The Peer Effects On The Participation Of Family Commercial Life Insurance

Influenced by traditional culture and lifestyle,Chinese residents have always had a strong sense of family and group,which leads to personal behavior not only affected by their own subjective and objective factors,but also greatly affected by others and groups,and through the information transmission and interaction with group members,individual behavior will also act on the group while being influenced by the group members.This phenomenon in which individual behavior changes in response to group behaviors is known as peer effects.As China’s society enters the aging stage,commercial life insurance,as a financial product with both the functions of preserving and increasing value and preventing pension risks,provides market power for the construction of multi-level social security system.In recent years,most of the research on the factors influencing family participation in commercial life insurance has focused on economic factors and demographic characteristics,and rarely combined with sociological perspectives.Studies have shown that peer effects widely exist in individual financial decision-making,social project participation and investment choice.This paper aims to study the influence of the peer effects on the participation of family commercial life insurance,test the influence mechanism of the peer effects in the participation of family commercial life insurance,help enrich the research on the influencing factors of family commercial life insurance participation behavior and the theoretical research on the peer effects in household financial decision-making in China,provide ideas and references for improving the participation level of family commercial life insurance in China,and has great significance for promoting the development of China’s commercial insurance industry and life insurance industry.Therefore,this paper combines the research methods of literature analysis and empirical analysis,uses the 2019 CHFS data,and uses Probit and Tobit models to study the impact of the peer effects on the participation of family commercial life insurance from the perspective of living in the same group,as well as heterogeneity analysis and the impact mechanism.The results of this paper show that: first,the peer effects have a significant positive impact on family commercial life insurance participation;Second,the positive effect of peer effects on family commercial life insurance participation is more significant in rural households with non-low income,high education level and younger head of household.Third,the peer effects will affect the participation of family commercial life insurance through social interaction mechanism and information transmission mechanism.Fourth,the increase of the income level of the same group will inhibit the positive impact of the peer effects on the participation of family commercial life insurance to a certain extent.Accordingly,this paper puts forward three suggestions:(1)strengthen the construction of credit in insurance industry and give full play to the promoting role of peer effects;(2)Encourage residents to participate in social activities,and promote information exchange and knowledge sharing;(3)Continuously optimize the sales model and product design of insurance companies,and promote the matching of industry supply and demand.