Risk Attitude, Financial Knowledge and Commercial Life Insurance Needs

Abstract

This paper uses the 2015 China Household Finance Survey (CHFS) to study the impact of risk attitudes and financial knowledge on household business life insurance demand from a micro perspective. By constructing the Probit and Tobit models, it is found that risk-averse families will reduce the demand for life insurance, and the increase in financial knowledge will significantly increase the participation and depth of family life insurance. It is possible to purchase commercial life insurance, and its life insurance premium expenditure industry is more. Finally, this article puts forward suggestions for promoting the development of China’s commercial life insurance from the perspective of popularizing financial knowledge and providing different insurance products for different risk attitudes.