Does Digital Inclusive Finance Promote Commercial Insurance
Participation? -- An Empirical Study Based on the Digital Inclusive
Finance Index and China Family Panel Studies Data
Abstract
This paper matches the “Peking University Digital Inclusive Finance
Index” published by Peking University Digital Finance Research Center
with the 2018 China Family Panel Studies (CFPS) database, and uses
Probit and Logit models to empirically investigate the impact of digital
inclusive finance on impact of household commercial insurance
participation. The findings show that, first, the development of digital
inclusive finance significantly increases commercial insurance
participation, and this effect remains significant after adding control
variables or changing models; second, the impact of digital inclusive
finance on commercial insurance participation shows structural
differences by urban-rural, regional, and risk preferences. At the
urban-rural level, the impact of digital inclusive finance on commercial
insurance participation is significantly higher in rural than in urban
areas; at the regional level, the impact of digital inclusive finance is
greater in western regions than in eastern and central regions; at the
risk preference level, the impact of digital inclusive finance on
commercial insurance participation is higher in risk-averse groups than
in risk-averse groups. Based on the above findings, this paper proposes
to accelerate the development of digital inclusive finance, especially
focusing on the construction of digital inclusive finance in less
developed regions; improve the financial market system, strengthen the
supervision of insurance products; and increase the popularization of
financial knowledge.