The Effect Of Commercial Health Insurance On Household Risk Financial Asset Allocation

According to the report,we will strive to increase the share of individual income in national income distribution,increase individual property income through various channels,standardize the mechanism for accumulating wealth,and protect legitimate income.One of the important ways to increase residents’ property income is to optimize the allocation of household assets.According to Markowitz’s portfolio theory and Tobin’s theory of the combination of risk-free and risk-based assets,households can achieve the maximum utility when the allocation ratio of risk-free financial assets to risk-based financial assets meets certain conditions,which is the optimal allocation state of household assets.However,the proportion of risky financial assets held by households is much lower than that of risk-free financial assets,which is a reflection of inappropriate allocation of household financial assets.Optimizing the allocation of household financial assets can effectively increase household property income,increase household wealth,and promote the development of financial markets to make reasonable use of social resources.As a way of risk management,insurance can effectively deal with the uncertainty of the future.Commercial health insurance,mainly medical insurance and serious disease insurance,takes the insured person’s body as the object.It can effectively deal with the future medical expenses or income loss caused by illness or accident of family members,and effectively supplement the social medical insurance.Medical expenses are often sudden and large,so commercial health insurance can effectively ease the uncertainty faced by families and give families more money to spend.Therefore,can holding commercial health insurance improve the probability and proportion of household allocation of risky financial assets?Based on the data of SURVEY AND RESEARCH CENTER FOR CHINA HOUSEHOLD FINANCE 2019,this paper studies the impact of commercial health insurance from the perspective of the probability and proportion of household allocation to risky financial assets.Through theoretical research and empirical analysis,this paper believes that family holding commercial health insurance will promote the allocation of risky financial assets.Moreover,the expenditure of family commercial health insurance premiums has both promotion and crowding out effects on risky financial assets,and the combination of the two effects increases first and then decreases with the increase of the number of premiums.In view of the endogeneity of regression,this paper adopts the method of instrumental variables and takes the insurance density of the family’s locality as the instrumental variable.The regression results of instrumental variables show that commercial health insurance still has a positive impact on the allocation of household risk financial assets.At the same time,the mechanism analysis of the whole sample is carried out,and the mediation effect of precautionary savings rate is significant.Commercial health insurance effectively reduces the precautionary savings rate of households and thus increases the allocation of risky financial assets of households,and the sample has heterogeneity in risk attitude、different stages of the family life cycle and region.In this paper,the propensity score matching model is used to test the robustness of the samples,and the matching regression results are consistent with the original results.