Research On The Influence Of Insurance Technology On Trust Of Insurance Companies

The 20th National Congress of the Communist Party of China pointed out that the state will encourage,support and guide enterprises in various sectors to increase investment in scientific and technological innovation at the policy level,enhance their capacity for independent innovation,and stimulate innovation vitality.Innovation is at the core of socialist modernization.The 14th Five-Year Plan for Standardization of China’s Insurance Industry clearly points out that digital transformation is an important way for the insurance industry to implement the new development concept and promote high-quality development.The COVID-19 outbreak in 2020 has given further impetus to the development of insurtech.However,with the development of science and technology comes the "loss of trust".Facing the frequent "thunder" time of insurance companies,the problem of public trust in insurance companies needs to be solved urgently.Consumers’ trust mainly comes from process trust,interpersonal trust and institutional trust,and self-risk cognition also has an impact on it.Different from the previous methods of designing questionnaires and using a smaller sample size for analysis,this paper uses more samples,a wider range,and more random data from the survey of China’s general social conditions for analysis.In addition,previous studies by scholars focused more on consumers’ own factors,while whether environmental factors such as insurance technology can have an impact and what the impact mechanism is are worth thinking about.This paper mainly studies the impact of insurtech on public trust in insurance companies and the specific mechanism.First of all,this paper introduces the research background,purpose and significance.On the basis of summarizing and analyzing relevant literatures at home and abroad,this paper proposes the research content and methods,as well as the innovation points and shortcomings of this paper.Secondly,the connotation and underlying technology of insurance technology,trust and trust mechanism are elaborated in detail.At the same time,social system theory and behavioral insurance theory are used to discuss that the development of insurance technology will inhibit consumers’ trust in insurance companies,and based on marketing theory and transaction cost theory,the transmission mechanism of the development of insurance technology will affect consumers’ trust in insurance companies by affecting the number of insurance outlets per capita is analyzed,and the corresponding hypothesis is proposed.Thirdly,this paper selects the insurance sub-index under the Peking University Digital Financial Inclusion Index as the explanatory variable.In the General Social Situation Survey of China(CSS),respondents responded to the question "Do you trust the following institutions? The answers of insurance companies were taken as explained variables,and factors such as age,gender and education level of respondents were taken as control variables to build an empirical model.On this basis,descriptive statistics were carried out on the data,baseline regression analysis was conducted using Probit model and OLS,robustness test was carried out by changing the encoding method of dependent variables,alternative variable method and sample size reduction method,endogeneity analysis was carried out by instrumental variable method,and heterogeneity analysis was carried out at last.All empirical results passed the test to verify the validity of hypothesis H1.Furthermore,the influence mechanism of reference regression was analyzed through the method of mediating variables,and the transmission mechanism hypothesis H2 was verified.Finally,according to the results of theoretical analysis and empirical analysis,the conclusion is summarized,and the corresponding suggestions and prospects are put forward.The results show that insurtech has a significant negative effect on the trust of insurance companies,and this effect is partly generated through the transmission mechanism of the number of insurance outlets per capita,that is,the development of insurtech will reduce the number of insurance outlets per capita,thus weakening consumers’ trust in insurance companies.In order to better develop the insurance industry,this paper finally puts forward targeted suggestions for government departments,insurance companies,insurance technology companies and the public.