The Impact of Digital Financial Inclusion on Household Commercial Insurance for Sustainable Governance Mechanisms under Regional Group Differences

Zaikun Hou, Jing Xu, Yongrok Choi () and Yunning Ma ()
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Zaikun Hou: Institute of Blue and Green Development, Shandong University, Weihai 264209, China
Jing Xu: Dongfang College, Shandong University of Finance and Economics, Taian 271000, China
Yongrok Choi: Program of Industrial Security Governance, Inha University, Incheon 22212, Republic of Korea
Yunning Ma: Program of Industrial Security Governance, Inha University, Incheon 22212, Republic of Korea

Sustainability, 2024, vol. 16, issue 9, 1-16

Abstract: This study explores the nexus between digital financial inclusion and household participation in commercial insurance, utilizing data from the Peking University Digital Financial Inclusion Index and the 2018 CFPS database. Using Probit and Logit models, our research uncovers significant regional and risk -preference variations, emphasizing the influence of governance mechanisms. The study underscores the pivotal role of digital participation in a sustainable governance mechanism in shaping financial behavior, as well as the importance of advocating for regulatory interventions, enhanced financial literacy, and infrastructure development to foster equitable insurance access. Moreover, positive determinants, such as education level and social insurance participation, are identified, while discretionary spending emerges as a barrier. This study advocates for expedited digital financial inclusion initiatives to increase financial literacy with strengthened regulatory oversight and governance mechanisms which would ensure sustainable regional development and insurance market resilience.

Keywords: governance; digital financial inclusion; business insurance; financial literacy; human interest spending (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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