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Does online payment promote the purchase of commercial insurance? Evidence from China

Author

Listed:
  • Gao, Lifei
  • Wang, Dongni
  • Wang, Guojun
  • Shi, Hao

Abstract

China is a major insurance country, but the insurance density and insurance depth have long been lower than the world average. It has been found in literature that the rapid development of online payments in China promotes individuals' consumption. This research aims to explore whether online payment can promote individuals' purchase of commercial insurance. Using data from the Chinese General Social Survey 2017–2018 and China Household Finance Survey 2017, we apply the probit model, propensity score matching, instrumental variable (IV), placebo test, and other methods to examine impact of online payment on individuals' commercial insurance purchases. We find that online payment can significantly increase the probability of individuals' purchasing commercial medical and endowment insurance, partially by increasing individuals' browsing of Internet information, Internet social interaction and financial literacy. Thus, online payment system development may improve individuals’ risk protection levels.

Suggested Citation

  • Gao, Lifei & Wang, Dongni & Wang, Guojun & Shi, Hao, 2025. "Does online payment promote the purchase of commercial insurance? Evidence from China," International Review of Economics & Finance, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:reveco:v:98:y:2025:i:c:s1059056025000577
    DOI: 10.1016/j.iref.2025.103894
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    References listed on IDEAS

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    More about this item

    Keywords

    Online payment; Commercial insurance; Financial literacy; Internet social interaction; Internet information; China;
    All these keywords.

    JEL classification:

    • G52 - Financial Economics - - Household Finance - - - Insurance
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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