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Commercial insurance and poverty resilience among Chinese rural households

Author

Listed:
  • Hu, Lian
  • Zhu, Ting
  • Ji, Luhan
  • Chen, Xiwang
  • Wang, Dianshuang

Abstract

Considering the dynamic and stochastic nature of poverty alleviation, a resilience-based approach can provide a useful framework for assessing rural households’ long-term wellbeing. Existing studies pay limited attention to the influence of commercial insurance and produce minimal evidence on its effects and causal mechanisms in poverty reduction from the perspective of resilience. Using data from the China Household Finance Survey, we empirically measure poverty-alleviation resilience (PAR) among rural households and examine the impact of commercial insurance participation. The results reveal that commercial insurance significantly enhances household PAR. Further analysis indicates that this effect operates through a loss-compensation effect, which strengthens households’ capacity to cope with adverse shocks, and an uncertainty-reduction effect, which promotes entrepreneurial activity and greater human capital investment. These findings provide empirical support for developing more precisely targeted and inclusive commercial insurance schemes in rural areas to foster long-term and sustainable development among vulnerable populations.

Suggested Citation

  • Hu, Lian & Zhu, Ting & Ji, Luhan & Chen, Xiwang & Wang, Dianshuang, 2026. "Commercial insurance and poverty resilience among Chinese rural households," Economic Analysis and Policy, Elsevier, vol. 90(C), pages 1467-1483.
    • Handle: RePEc:eee:ecanpo:v:90:y:2026:i:c:p:1467-1483
    DOI: 10.1016/j.eap.2026.02.023
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