Author(s)

Yaozhi Duan ¹, Haolan Wang ¹, Huimin Zheng ¹

Affiliation(s)

¹ School of Economics, Guangzhou College of Commerce, Guangzhou, Guangdong, China

Corresponding Author

Huimin Zheng

ABSTRACT

The COVID-19 outbreak in 2020 has highlighted the importance of commercial insurance, and residents' insurance participation has become a hot topic in academic research. This paper uses the data of the existing Chinese household financial data questionnaire to conduct factor analysis on residents' financial literacy, constructs variable indicators, and uses the Probit model to explore the possibility of financial literacy and commercial insurance for residential. The research results show that the residents' financial literacy level positively correlates with the purchase behavior of commercial insurance. With the improvement of financial level, residents take the initiative to participate in insurance. This paper provides a reference for better-prompting residents to purchase commercial insurance and develop the insurance market actively.

KEYWORDS

Commercial insurance, Financial literacy, Influencing factors, Probit mode

CITE THIS PAPER

Yaozhi Duan, Haolan Wang, Huimin Zheng, Financial Literacy and Commercial Insurance Participation Behavior. Financial Engineering and Risk Management (2022) Vol. 5: 113-127. DOI: http://dx.doi.org/10.23977/ferm.2022.050416.

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