Cultural Influence on Insurance Consumption: Insights from the Chinese Insurance Market

36 Pages Posted: 11 Aug 2013 Last revised: 1 Mar 2015

See all articles by Ming Zhong

Ming Zhong

Shanghai University of Finance and Economics - Department of Finance

Zhenzhen Sun

University of Massachusetts Dartmouth; University of Massachusetts Dartmouth

Gene C. Lai

Washington State University - Department of Finance, Insurance and Real Estate

Tong Yu

University of Cincinnati - Department of Finance - Real Estate

Date Written: July 2, 2013

Abstract

Despite fast growth in the past three decades, the Chinese insurance market is underdeveloped in terms of insurance density and penetration. In this study, we examine the cultural influence on insurance consumption in China and present evidence on the culture influence hypothesis. We find that demand-related factors explain insurance consumption while supply factors do not. Among the demand-side variables, those closely related to culture (i.e., percentage of saving in GDP and fraction of urban population) dominate economy-based variables in driving insurance consumption. Moreover, we obtain consistent evidence regarding cultural influence on insurance consumption using an international dataset across 56 countries. In general, our finding suggests that culture plays a significant role in determining insurance consumption.

Keywords: Culture; Economic Development; Insurance consumption; Saving; Urbanisation

Suggested Citation

Zhong, Ming and Sun, Zhenzhen and Lai, Gene and Yu, Tong, Cultural Influence on Insurance Consumption: Insights from the Chinese Insurance Market (July 2, 2013). Available at SSRN: https://ssrn.com/abstract=2122768 or http://dx.doi.org/10.2139/ssrn.2122768

Ming Zhong

Shanghai University of Finance and Economics - Department of Finance ( email )

Shanghai, 200433
China

Zhenzhen Sun

University of Massachusetts Dartmouth ( email )

285 Old Westport Road
Dartmouth, MA 02747-2300
United States

University of Massachusetts Dartmouth ( email )

285 Old Westport Road
N Dartmouth, MA 02747-2300
United States

Gene Lai

Washington State University - Department of Finance, Insurance and Real Estate ( email )

Todd 470
Pullman, WA 99164-4746
United States

Tong Yu (Contact Author)

University of Cincinnati - Department of Finance - Real Estate ( email )

College of Business Administration
Cincinnati, OH 45221
United States
4019548606 (Phone)
4019548606 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
172
Abstract Views
997
rank
211,078
PlumX Metrics