IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v98y2025ics1059056025000577.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056025000577
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2025.103894?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:98:y:2025:i:c:s1059056025000577. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.