Research On The Effect Of Farmers’ Income Increase In The Development Of Inclusive Insurance In Henan Province

Vigorously developing inclusive insurance is an important policy choice in the field of people’s livelihood.The outline of the "14th Five-Year Plan" for the insurance industry pointed out that the development of inclusive insurance should be comprehensively promoted.In 2022,the term "insurance" was mentioned in many places in the No.1 document of the central government on Rural Revitalization.The essence of insurance is mutual assistance,poverty alleviation and poverty relief.It has the functions of insurance security and social management.In the context of rural revitalization,studying the income increasing effect of inclusive insurance development on farmers is important for Henan Province,a large agricultural province,which has good theoretical and practical significance.Therefore,this paper firstly defines the concept of inclusive insurance based on the definition of inclusive finance and existing research.It also combs the current situation of farmers’ income increase in Henan Province,the supply and demand of inclusive insurance in Henan Province,and the current policy environment of inclusive insurance in Henan Province.Secondly,based on the theory of financial exclusion and welfare economics,the paper analyzes the income-increasing effect of the development of inclusive insurance from two aspects: direct mechanism and indirect mechanism,and reveals the impact mechanism of the development of inclusive insurance on farmers’ income.Thirdly,the development level of inclusive insurance in 18 prefecture level cities in Henan Province was measured using the Euclidean distance transformation formula and the arithmetic average weighting method from the three dimensions of permeability,usability and utility,and it was taken as the core explanatory variable.Then,using the panel data of 18prefecture-level cities in Henan Province from 2010 to 2019,the fixed effect regression analysis and the panel threshold regression model are used to test the direct effect of the development of inclusive insurance on farmers’ income and the indirect effect of economic development as a threshold variable,it is concluded that the development of inclusive insurance has a promoting effect on the increase of farmers’ income,and with the improvement of the level of economic development,the effect is more significant.Finally,according to the research conclusions,based on the actual situation of the development of inclusive insurance in Henan Province,relevant suggestions are put forward from the perspectives of inclusive insurance policy,supervision and publicity,In order to give better play to the income increasing effect of the development of inclusive insurance on farmers.