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

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  • Xianhang Qian

    (Shandong University)

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.

Suggested Citation

  • Xianhang Qian, 2021. "The impact of COVID-19 pandemic on insurance demand: the case of China," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(7), pages 1017-1024, September.
    • Handle: RePEc:spr:eujhec:v:22:y:2021:i:7:d:10.1007_s10198-021-01344-7
    DOI: 10.1007/s10198-021-01344-7
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    Cited by:

    1. Wang, Zhixuan & Dong, Yanli & Liu, Ailan, 2022. "How does China's stock market react to supply chain disruptions from COVID-19?," International Review of Financial Analysis, Elsevier, vol. 82(C).
    2. Trinh, Cong Tam & Chao, Chi-Chur & Ho, Nhut Quang, 2023. "Private health insurance consumption and public health-care provision in OECD countries: Impact of culture, finance, and the pandemic," The North American Journal of Economics and Finance, Elsevier, vol. 64(C).
    3. Davide Lanfranchi & Laura Grassi, 2022. "Examining insurance companies’ use of technology for innovation," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(3), pages 520-537, July.

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    More about this item

    Keywords

    COVID-19; Confirmed cases; Insurance demand; Medical treatment conditions; Medical burden;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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