Digital Inclusive Finance and Individual Commercial Pension Insurance Participation
Abstract
With the increasingly severe problem of social aging, commercial pension insurance, as an important supplement to personal pension security, has become the focus of public attention. The rise of digital financial inclusion provides new opportunities for individuals to participate in commercial pension insurance, and financial literacy and financial development play a crucial role in this process. This paper explores the relationship between digital financial inclusion and the participation rate of individual commercial pension insurance. The results show that digital inclusive finance significantly improves the probability of residents participating in commercial pension insurance by providing convenient and low-cost financial services. At the same time, financial literacy and financial development play an important intermediary role in this process, helping residents better understand financial products, thereby increasing their willingness to participate in commercial pension insurance. In addition, personal characteristics, family status and regional economic factors also have a significant impact on the participation rate of commercial endowment insurance, healthy individuals, individuals participating in basic endowment insurance, women, individuals with more real estate and vehicles are more inclined to buy commercial endowment insurance, families with more children are less demanding for commercial endowment insurance, and the increase in government public budget expenditure also prompts residents to be more inclined to buy commercial endowment insurance. Further analysis shows that digital inclusive finance has a more significant promoting effect among non-party members, residents who often use the Internet, agricultural residents, urban residents, and residents in the eastern region. Overall, the rapid development of digital inclusive finance has provided a strong impetus for the participation of individual commercial pension insurance, and financial literacy and financial development have played a bridge role in this process, promoting residents' awareness and participation in commercial pension insurance.
Keywords
Download Options
Introduction
With the intensification of the global aging problem, the traditional old-age security system is facing huge challenges. In many countries, especially China, the rate of population aging is accelerating, and the pressure on old-age security is increasing day by day. In order to cope with this social challenge, commercial endowment insurance, as an important supplement to personal endowment security, has gradually attracted widespread attention. Compared with the traditional pension model, commercial pension insurance can provide individuals with more flexible and personalized protection options, and has become an indispensable part of the aging society. However, despite the obvious advantages of commercial pension insurance, there are still a large number of residents who have not fully participated in it, especially in low-income groups and in some areas [2]
In recent years, with the rapid development of digital technology, digital inclusive finance, as an innovative financial service model, provides a new opportunity for individuals to participate in commercial pension insurance. Digital inclusive finance haslowered the threshold for financial services through Internet technology, enabling more residents, especially those in remote areas, to obtain financial products at a lower cost and participate in commercial pension insurance [1].
Conclusion
Through empirical analysis, the impact of digital inclusive finance on the participation rate of individual commercial pension insurance is deeply discussed, and the mediating role of financial literacy and financial development in it is investigated. The results of the study found that, first, the health status of individuals, their participation in basic pension insurance, the number of houses and cars they owned, and policy support had a significant impact on the decision to purchase commercial pension insurance. Individuals in better health tend to purchase commercial pension insurance for long-term financial planning and risk management, while individuals in lower health tend to rely more on insurance due to their health risk sensitivity. Individuals who participate in basic pension insurance are more likely to purchase commercial pension insurance to fill the protection gap; Women, individuals with more properties and cars show higher willingness to buy due to their greater economic strength and risk aversion needs. Policy support also has a positive impact on purchasing decisions, reflecting residents' trust in the security system. In general, these factors work together to promote the willingness to purchase commercial pension insurance.
Second, financial literacy plays a significant mediating role between digital inclusive finance and the participation rate of commercial pension insurance. Specifically, digital inclusive finance enhances residents' understanding of financial products by improving their financial literacy, which in turn increases their willingness to participate in commercial pension insurance. The mediating effect of financial literacy accounted for 48.5%, reflecting its key role in promoting the participation rate of commercial pension insurance. At the same time, financial development also plays a significant intermediary role between digital inclusive finance and the participation rate of commercial pension insurance, accounting for 35.1%, indicating that the promotion of financial development on the participation rate of commercial pension insurance cannot be ignored.
Third, the role of digital inclusive finance in promoting the decision-making of commercial pension insurance is reflected in many groups, especially among non-party members, residents who often use the Internet, agricultural residents, urban residents and residents in the eastern region. Non-party members and internet-frequent residents are more sensitive to digital financial inclusion because they have easier access to information and purchase decisions through digital platforms. Urban residents are more receptive to digital inclusive finance because they enjoy better infrastructure and financial services, and the promotion effect is more obvious. In the eastern region, due to its developed economic and financial infrastructure, the influence of digital inclusive finance is particularly prominent. In contrast, due to lagging economic development, insufficient financial services and low financial literacy of residents in the central and western regions, the promotion of digital inclusive finance to commercial pension insurance is relatively weak.
Based on the conclusions of the paper, this paper puts forward the following policy suggestions: First, strengthen health management and risk awareness training, and find that the health status of individuals has a significant impact on the purchase decision of commercial pension insurance. Individuals in better health tend to use commercial pension insurance for long-term financial planning, while individuals in lower health may be more reliant on insurance due to their greater sensitivity to health risks. Therefore, it is suggested that policymakers should strengthen health management and risk awareness training, especially for groups with poor health status, and encourage them to achieve better risk sharing and financial security through commercial pension insurance. At the same time, it can be combined with the comprehensive product design of health insurance and pension insurance to enhance residents' willingness to participate.
Second, to promote the construction of financial infrastructure in the eastern and central and western regions, considering that the eastern region has stronger acceptance and influence on digital inclusive finance, it is recommended to increase the construction of financial infrastructure in the central and western regions to improve residents' awareness and accessibility of digital financial products. This will not only narrow the gap between regions, but also promote the overall access to financial services and enhance the social inclusion of digital financial inclusion.
Third, the design and marketing of diversified financial products, due to the differences in the acceptance of digital inclusive finance by different groups, it is recommended that financial institutions consider more diversified demand characteristics when designing commercial pension insurance products, such as launching financial products with low thresholds and strong flexibility. At the same time, the marketing of financial products should be accurately launched through different channels and platforms, combined with the specific conditions of each group.
Fourth, to enhance policy support and incentives, local governments should strengthen policy support for commercial pension insurance, especially in terms of fiscal expenditure. By increasing incentives such as subsidies or tax incentives for commercial pension insurance products, residents will be able to enhance their confidence in the future pension security, encourage them to actively participate in commercial insurance plans, and improve the level of pension security for the whole society.
Through the implementation of these policy recommendations, we can effectively promote the development of digital inclusive finance and enhance residents' financial participation, thereby promoting the popularization and development of commercial pension insurance and helping more people achieve economic security and retirement security.