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. 2021 Sep;22(7):1017-1024.
doi: 10.1007/s10198-021-01344-7. Epub 2021 Jul 8.

The impact of COVID-19 pandemic on insurance demand: the case of China

Xianhang Qian  1
Affiliations

The impact of COVID-19 pandemic on insurance demand: the case of China

Xianhang Qian. Eur J Health Econ. 2021 Sep.

Abstract

The COVID-19 has been a worldwide pandemic and it needs for studies related to effect on people's demand for insurance during the pandemic which is an important way to transfer risk. However, there is a lack of research linking COVID-19 and people's demand for insurance. The objective of this paper is to investigate the impact of COVID-19 pandemic on issuance demand, using data covering 241 cities on confirmed COVID-19 cases and insurance company revenue in China. The empirical results show that more confirmed COVID-19 cases are associated with greater per capita insurance revenue and the results are robust when considering endogeneity concern. Economically, the per capita insurance revenue increases by 0.896 Yuan for each more confirmed case. In terms of insurance type, the greatest increased insurance revenue is for life insurance, followed by health insurance. We further consider the heterogeneity of regions and find that the impact of COVID-19 on insurance revenue only exists in regions with worse medical treatment conditions or higher medical burden.

Keywords: COVID-19; Confirmed cases; Insurance demand; Medical burden; Medical treatment conditions.

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Figures

Fig. 1
Fig. 1
Confirmed COVID-19 cases and insurance demand. The triangles represent the relationship between Case_cum and Insure_cum, and the solid line is the fitted line. The cicles show the relationship between Case_add and Insure_add, and the dash line is the fitted line
See this image and copyright information in PMC

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