Insurance Participation Research Articles

The Influence of the Peer Effect on Farmers’ Agricultural Insurance Decision: Evidence from the Survey Data of the Karst Region in China

Low insurance participation rate and low willingness to insure among farmers have always been major problems in the sustainable development of agricultural insurance in China. This paper attempts to examine the peer effect on farmers’ agricultural insurance buying decisions and explore its mechanism. We have established an IVprobit model, using the survey data of 9452 farmers in the karst regions in China. The empirical results show that: (1) Peer effect has a significant influence on farmers’ participation in agricultural insurance. A 10% increase in farmers’ neighbors’ participation in agricultural insurance increases the likelihood of farmers’ participation by 3.25%. (2) Peer effect promotes farmers’ participation by enhancing farmers’ risk perception and insurance cognition. (3) Peer effect is asymmetrical: male and larger-scale farmers have more significant effects on their peers and probably lead the participation in agricultural insurance. The results of the study have the following policy implications: (1) Increasing policy publicity and enforcing policy advocacy would magnify the positive impact of peer effect. (2) Increasing the participation rate of male and larger-scale farmers by policy interventions, which would give full play and a positive demonstration effect of specific groups. (3) Innovating insurance publicity methods to enhance farmers’ risk awareness and insurance cognition. (4) More concentration should be focused on the primary-level governance in rural China. We should advance the stock of rural social capital on all fronts to leverage the role of peer effect within rural areas.

The impact of health insurance on self-protection of Chinese rural residents.

PurposeHealth insurance lowers the price of medical services, which reduces the insured's demand for self-protection (such as, live a healthy lifestyle or invest in disease prevention) that could help reduce the probability of getting sick, then ex ante moral hazard happens. The purpose of this study is to examine the impact and its heterogeneity of health insurance on the self-protection of Chinese rural residents.MethodThis study firstly builds a theoretical model of health insurance and self-protection. Then, based on the data from the 2004 to 2015 China Health and Nutrition Survey (CHNS), we adopt ordinary least squares model (OLS), probit model, and instrumental variable (IV) method to empirically investigate the impact of health insurance on Chinese rural residents' self-protection.ResultsAfter addressing the endogeneity problem, the study finds that participating in health insurance exerts a significant negative impact on the demand for self-protection. Specifically, health insurance participation not only increases residents' tendency toward drinking liquor by 3.4%, and that of having general obesity by 3.7%, but also reduces residents' preventive medical expenditure (PME) by 1.057%, increasing Body Mass Index (BMI) by 0.784 kg/m2. Further analysis shows that there is heterogeneity between groups, as health insurance participation reduces PME of people who are female, younger, and high-educated, and increases the tendency toward drinking liquor of people who are younger and low-educated.ConclusionsTo reduce the impact of ex ante moral hazard induced by health insurance, our findings suggest that it is necessary to improve the disease prevention function of health insurance and introduce a risk adjustment mechanism into the premium or co-payment design of health insurance.

Identifying the potential participation in natural disaster insurance: first attempt based on a national socio-economic survey in Indonesia

PurposeThis study aims to identify the regions with a high risk of natural disaster, estimate the proportion of households potentially participating in natural disaster insurance and analyze the relationship between disaster risk index and proportion of household potentially participating in natural disaster insurance.Design/methodology/approachDescriptive and quadrant analysis was applied on the 2019 Indonesia Disaster Risk Index (IRBI) scores and the 2019 National Socio-Economic Survey data.FindingsThe results showed there are only two categories of disaster risks in Indonesia based on IRBI categorization: “Medium” and “High.” Some districts in Aceh Province such as Simeuleu, Pidie Jaya and Banda Aceh City were observed to have a high proportion of households potentially participating in the natural disaster insurance while some in Jawa Tengah provinces have fairly low level even though they were categorized as high disaster-prone areas. Moreover, the quadrant analysis showed that 43 districts have high IRBI scores but low insurance participation rates with most discovered to be in Jawa Barat and Sumatera Selatan provinces.Originality/valueIndonesia does not have a financial mitigation program up to the present time because almost all disaster resolutions are formulated based on emergency funds from the state budget even though it is important to use insurance schemes in all stages of disaster management. To the best of the authors’ knowledge, this study is the first attempt to identify households potentially participating in natural disaster insurance through the National Socio-Economic Survey in Indonesia.

PERTIMBANGAN HAKIM DALAM PUTUSAN KASUS ASURANSI SYARIAH

This study aims to determine and analyze the judge's considerations in the case of sharia insurance cases in the Religious Courts in Decision Number 426/Pdt.G/2021/PA.JS as well as knowing what factors encourage a judge in deciding sharia insurance cases.This study uses a qualitative method using a normative juridical approach. The source of data used in this study is primary data in the form of a copy of Decision Number 426/Pdt.G/2021/PA.JS obtained from the Directory of Decisions of the Supreme Court of the Republic of Indonesia. Secondary data in this study is in the form of data that supports the explanation of primary data. The results of this study indicate that the judge did not bring the sharia insurance agent in front of the trial, even though the plaintiff repeatedly mentioned the name of the sharia insurance agent. So from the root of the problem, according to the author, the judge's considerations are very rigid, and in the judge's consideration, stating that the company is legal and the company is not in default is questionable. However, in the judge's decision, which is of the opinion that the insurance participant's premium money is returned totally very wise.

The effects of health insurance and physical exercise participation on life satisfaction of older people in China-Based on CHNS panel data from 2006 to 2015.

BackgroundIn China, the problem of aging population has become more and more serious. The factors influencing life satisfaction of older people are becoming a significant issue. This study explores the effects of health insurance and physical exercise on life satisfaction of older people in China.MethodThis study used an unbalanced panel dataset (n = 6,393, T = 4) of older adults aged 60–80 years from the 2006 to 2015 China Health and Nutrition Survey (CHNS). A panel ordered logistic regression model was developed to examine the effects of health insurance and physical exercise on older people' life satisfaction. Mediation tests were used to examine the mediating role of physical exercise in the effect of health insurance on life satisfaction of older people.ResultLife satisfaction of older people was positively associated with participation in health insurance (OR = 1.439) and physical exercise (OR = 1.033). Participation in government health insurance, urban employee health insurance (UEBMI), new rural cooperative health insurance (NRCMI), and other commercial health insurance all have positive effects on life satisfaction of older people. Physical exercise plays a masking role in the effect of health insurance on life satisfaction of older people.ConclusionParticipation in health insurance and physical exercise are important means to promote life satisfaction among older people. Physical exercise affects the impact of health insurance on older people's life satisfaction.

The effect of subjective life expectancy on the participation in commercial pension insurance of Chinese elderly

ObjectiveThis paper studies the impact of the subjective life expectancy of the elderly on their commercial pension insurance participation at micro perspective, providing new evidence to explain the motivation of commercial pension insurance participation in China.MethodsUsing 4 waves of data from the China Health and Retirement Longitudinal Study (CHARLS) from 2011 to 2018, a multiple linear regression model is constructed to investigate the effect of subjective life expectancy on commercial pension insurance participation among the Chinese elderly, and IV model estimation shows that the results are robust. Meanwhile, the heterogeneity of the effect of elderly life expectancy on commercial pension insurance participation behavior among different characteristic groups is also studied.ResultsA one standard deviation improvement in our measure of subjective life expectancy predicts a 0.9% point higher participation rate in commercial pension insurance. We also find that there is significant heterogeneity in the effects of subjective life expectancy on the participation of elderly people in commercial pension insurance with respect to gender, education, hukou, and wealth.ConclusionThis paper provides a new perspective to explain the factors influencing commercial pension insurance participation in China. We suggest that improving residents’ awareness of life expectancy is beneficial to their reasonable retirement planning, in the background of stepping into an aging society in China.

Analisis Peran Undewriter Dalam Menyeleksi Risiko pada Produk Asuransi Kesehatan:

This study aims at the role of the underwriter in selecting the risk of health insurance products, knowing the obstacles encountered by the underwriter in selecting the risk and the solutions applied to overcome these obstacles, and knowing the underwriting process of group health insurance at AJB Bumiputera Medan. The type of research used is descriptive research, with a qualitative approach. The conclusions of this study briefly are: (1) Underwriters have an important role in insurance companies because underwriters determine whether the insurance coverage can be accommodated by the company or not. (2) Obstacles encountered by underwriters in selecting risks are the availability of incomplete participant data, previous experience data of the insured and prospective insured not providing the desired budget and benefits, while the solution is to contact the agent concerned to obtain additional information needed by the underwriter, apply analysis to groups of prospective insurance participants as new participants, and provide standard premium rates and benefits. (3) The underwriting process begins when marketing applies for SPPA until the issuance of the policy.
 Keywords: Underwriting, Underwriter, Group Health Insurance

Mechanism of human capital influence on household commercial insurance holding behavior—An empirical analysis based on China household finance survey (CHFS) data

In order to better exploit the role of commercial insurance in preventing and mitigating household financial risks and improving social security, this paper explores the influence mechanism of household human capital, a special endowment resource that has potential influence on households’ cognitive and behavioral decisions on commercial insurance, by constructing a structural equation model based on data from the 2017 China Household Finance Survey (CHFS) and introducing its influence on households’ commercial insurance holding behavior. The results show that human capital has a significant positive effect on household commercial insurance holding behavior; financial market participation and risk preference play a part in mediating the relationship between human capital and household commercial insurance holding behavior, with financial market participation playing a greater role. According to the findings of this paper, the government and relevant institutions should increase financial literacy efforts, enhance residents’ correct understanding of commercial insurance and shape a healthy insurance market, so as to promote effective household participation in commercial insurance and the healthy development of China’s commercial insurance market.

Study on the Utilization of National Health Insurance Participants for Contribution Assistance Recipients Jambi City

The coverage of JKN PBI participation is higher than that of non-PBI participants, but the utilization of health services by JKN PBI participants in Indonesia is still relatively low. This study aims to determine what factors are related to the utilization of health services for PBI group National Health Insurance (JKN) participants in Jambi City. This study is a quantitative study using a cross sectional approach. The sample amounted to 106 samples with a sampling technique using accidental sampling. The independent variables in this study were education, occupation, knowledge, attitudes, perceptions of health conditions, affordability and information, while the dependent variable was the utilization of health services. Data were obtained by filling out questionnaires by respondents. Data analysis was performed using univariate and bivariate (chi-square) tests. The results of this study indicate that most of the 61.3% of respondents do not use health services. Based on statistical tests in this study indicate that factors related to the utilization of health services are knowledge (0.000), attitudes (0.003), perception of health conditions (0.012), and information (0.000). And there is no relationship between education (0.147), occupation (0.295) and affordability (0.787) with the utilization of health services for participants of the National Health Insurance (JKN) PBI group. There is a relationship between the variables of knowledge, attitudes, perceptions of health conditions and information with the utilization of health services for the participants of the National Health Insurance for the PBI Group in Jambi City.

Analysis of Work Accidents and Work Accident Benefits in 2016 in East Java

Introduction: According to data from the Ministry of Manpower of the Republic of Indonesia in 2016, it shows that there were 16,880 work accidents that occurred in East Java, which were classified as an OHS emergency. This study aims to analyze the incidence of work accidents and the amount of work accident insurance benefits received by the participants of Employment Insurance and Social Security in East Java Province. Methods: This study used non-reactive research and secondary data, namely gender, age, accident location, time of accident, number of work accidents and data on the number of benefits received by the participants of Employment Insurance and Social Security in East Java in 2016. The number of samples was 4,700 respondents. The analysis was conducted by comparing the number of work accidents with the amount of benefits received by workers participating in the Employment Insurance and Social Security. Results: The results showed that based on gender, the highest occupational accident cases occurred in male workers (80%), most of the occupational accident cases occurred at the age <25 years old- 35 years old (56%), the location of the accident mostly occurred at work locations (70%), and most of the accidents occurred at 06.01-12.00 (46%). Conclusion: The case of work accidents in 2016 in East Java when compared to the number of work safety benefit recipients was 0.77% and the ratio of the number of work accident cases with the highest work safety benefit amount was in permanent total disability (1: 4,800,000).

Labor Rights and Interests Protection for Women in Informal Employment in China—Based on the Perspective of Constructing a Fertility-friendly Society

Women in informal employment often need to face more risks and responsibilities during maternity, children, and family care. However, informal workers are rarely protected by national labor laws and regulations, and their labor rights and interests are difficult to be protected. From the perspective of constructing a fertility-friendly society, this paper focuses on the impact of COVID-19, maternity, and family care on women in informal employment and discusses the labor rights and interests protection for women in informal employment in China. To protect the lawful labor rights and interests of women in informal employment, the government should improve and formulate labor security policies related to the epidemic to reduce the impact of public emergencies on people’s lives; improve the social insurance system and lower the threshold for participation in social insurance for flexible employees; lay the foundation for constructing a fertility-friendly society by emphasizing the collective responsibility for family care.

Immigrants’ health education and economic behaviours: saving rates, social medical insurance and house purchase

Healthy China is a crucial policy for advancing global health, addressing inequality between rural and urban health education, and helping the domestic markets recover after the COVID-19 outbreak. This study combines life cycle mechanisms and safety beliefs to evaluate the long-lasting values of health education. We employed data from the China Migration Dynamic Surveys to examine the economic behaviours of 720,900 immigrants using a robust empirical approach combining an Extended Regression Model (E.R.M.), Average Treatment Effects (A.T.E.), and heterogeneous treatment effects. We find that health education increases participation in social medical insurance and the likelihood of purchasing a house. In contrast, the relationship between health education and saving rates is non-linear effects. Empirically robust heterogeneous treatment effects account for heterogeneity in the previous and the younger generations, as well as urban and rural citizens’ long-run effects of health education. This study’s findings suggest that health education stimulates immigrants’ consumption behaviours; however, extra health education is not desirable. Rural-urban citizenship acquisition bias is found to significantly affect health education.

Factors Affecting the Intensity of the Use of Medicinal Plants in Minasatene Resort, Bantimurung-Bulusaraung National Park, South Sulawesi: A Case Study in Indonesia

Medicinal plants are believed to have the ability to both cure disease and maintain health and have been used by humans for a long time. The intensity of the use of medicinal plants can be influenced by community characteristics and supporting factors such as economic, social, and others. Data were collected using structured interview questionnaire from 210 respondents. The data recorded is: 1. How frequently did they use medicinal plants); 2. Information about respondents' characteristics consist of gender, age, marital status, educational level, occupation, and monthly income; 3. Preference of the Community for Type of Treatment and Reason for Preference of medicin; 4. Factors that affect the intensity of the use of medicinal plants consist of the effectiveness of medicinal plants,the price of modern medicine, side effects of modern medicine, distance of health facilities, participation in health insurance, a history of disease, frequency of illness, and average duration of illness.At the intensity of the use of medicinal plants in the community of Minasatene Resort, as much as 31.9% used medicinal plants at least once a year. The variables that had a significant relationship with the intensity of the use of medicinal plants were the effectiveness of medicinal plants against disease (p = 0.000), the presence of side effects of modern medicine (p = 0.035), a history of disease (p = 0.007), and the average duration of each time period sick (p = 0.028).

Household financial literacy and relative poverty: An analysis of the psychology of poverty and market participation.

Financial literacy is the significant human capital factor affecting people's ability to obtain financial services. Evaluating the relationship between financial literacy and relative poverty is of great significance to poverty reduction. This study investigated the impacts of financial literacy on relative poverty from the perspective of poverty psychology and market participation using data from the 2017, 2019 China Household Finance Survey (CHFS). The empirical findings showed that financial literacy can alleviate relative household poverty through household participation in entrepreneurial activities, commercial insurance participation and the choice of lending channels. Financial literacy has significant poverty reduction effect on households of continuous operation, reduces the likelihood of exiting operation. Further discussion showed that the poverty reduction effect of financial literacy is more pronounced among households with higher levels of financial literacy, under the age of sixty, low levels of indebtedness and in the eastern region. Our study provides empirical evidence for encouraging market participation and promoting financial literacy and provide valuable recommendations for the policymaker to improve poverty reduction effect in the developing country context.

Assessment of Dentist Participation in Public Insurance Programs for Children in the US

Evaluating the availability of dentists to provide dental care services to children is important for identifying interventions for improving access. To assess dental care availability for children in the US by public insurance participation, rural-urban setting, and dentist taxonomy (general, pediatric, or specialized). This cross-sectional study analyzed the availability of dentists from matching 3 data sets: the 2020 National Plan and Provider Enumeration System, the 2019-2020 State Board of Dentistry information acquired from each state, and the 2019 InsureKidsNow.org database. Data on active dentists in most states (including the District of Columbia [combined hereinafter with states] and excluding Hawaii and Washington) were included in the analysis. The study was conducted from January 2019 to March 2022. The number and percentage of dentists participating in public insurance programs (Medicaid and/or Children's Health Insurance Program [CHIP]) were aggregated at the dental office and stratified by the rurality of their practice and taxonomy. State-level comparisons were derived between this study and reports from the Health Policy Institute of the American Dental Association, along with maps and summary statistics disseminated through a data portal and state reports. Among 204 279 active dentists, participation in public insurance varied widely across states, especially for the states that manage the Medicaid and CHIP programs separately. Participation rates in Medicaid and CHIP varied substantially from those of the Health Policy Institute of the American Dental Association. Participation in Medicaid and CHIP was lowest among urban dentists (Medicaid, 26%; CHIP, 29%) and highest among rural dentists (Medicaid, 39%; CHIP, 40%), while urban dentists accounted for most of the dentist population (urban, 84%; rural, 5%). Similarly, participation in Medicaid and CHIP was substantially lower among general dentists (Medicaid, 28%; CHIP, 29%) vs pediatric dentists (57% in both programs), while each state's dentist population consisted of notably more general (84%) than pediatric (3%) dentists. Nearly half of the states revealed wide variations in Medicaid and CHIP participation between counties, ranging from no participation (21 states) to full participation (22 states). The findings of this study suggest that disparities in the availability of dentists for pediatric dental care are extensive, particularly for Medicaid- and CHIP-insured children, those living in rural communities, and those receiving specialized care. Lack of dentist availability for Medicaid- and CHIP-insured children appears to deter access to receiving dental care.

농작물재해보험 보험료 지원의 효율성 분석: 사과를 중심으로

The Korean government's insurance premium subsidies for crop insurance increased the insurance participation rate, but brought a financial burden. This study analyzes budget reduction measures (the differential support system, the premium subsidy cap system, the same subsidy rate reduction) to alleviate the financial burden and efficiently operate the government budget. For the analysis, yield distribution functions of individual apple farms were estimated, and simulations were conducted. Main findings are summarized as follows. First, the differential support system has the greatest effect of improving efficiency among the budget reduction measures, and there is little reduction in the insurance participation rate. Second, the premium subsidy cap system has little effect on improving efficiency, and there is a small change in the participation rate. Third, the same subsidy rate reduction has little effect on improving the efficiency, and the participation rate decreases significantly. The differential support system is considered the most effective way to reduce the budget and is expected to have the lowest resistance from farmers. It is proposed to establish the system gradually from the low level to settle the system stably.

Descriptive social norms and herders' social insurance participation in Mongolia: A survey experiment

AbstractThis paper examines whether descriptive social norms affect one's intention to participate in voluntary social insurance in Mongolia. It reports the results of a survey experiment conducted in September 2020 among herders, whose rate of participation in voluntary social insurance is low and who presumably lack information about others' behaviours with respect to social insurance enrollment. Building upon prior research on descriptive social norms, we hypothesise that herders would be more willing to participate in voluntary social insurance when given information that many others are participating. The respondents were randomly assigned to two groups: one group received information that many others were participating in social insurance, and the other received information that the participation rate was low. We find that those who were given information on the high participation rate expressed a greater willingness to participate in social insurance in the future than the other group.

A Disaster Under-(Re)Insurance Puzzle: Home Bias in Disaster Risk-Bearing

We examine disaster reinsurance from the perspective of international risk-sharing. We find that losses from disasters are shared internationally to a generally very limited extent, unlike what the theory of international risk-sharing suggests. We propose a new dataset of cross-border reinsurance payments for 93 disasters of 44 economies in 1982–2017. Combining these balance of payments data with industry data, we find that the lack of disaster risk-sharing through international reinsurance results from low participation in primary insurance as well as limited use of reinsurance. Regression analysis finds that countries with higher levels of economic or financial development tend to insure a larger share of disaster losses while proxies for disaster myopia are associated with less insurance. Regarding the share of insured losses that is internationally reinsured, small size and de facto financial integration tend to raise the reinsurance share, while high levels of external wealth and low foreign firm presence in insurance are associated with less reinsurance. Advanced economies with little fiscal space that provide ex-post government disaster insurance without international reinsurance could experience disaster risk morphing into financial risk.

Faktor Investasi Klasik Peserta Asuransi pada Unit Link Syariah di Yogyakarta

This research aimed to determine the classic investment factors for insurance participants on unit link Sharia in the Yogyakarta area. This research type used mixed method research (the quantitative and qualitative research). Primary data was obtained by distributing questionnaires, while the qualitative stage of data was obtained by interview, observation, and also documentation. The research results showed that classical investment factors could influence the participants' decision to invest in sharia unit link insurance. The effect is 3.0, i.e. participants stated "agree". The important aspect of consideration for participants was the image aspect of the insurance company that they currently participated in. The item that the participants considered was the company's reputation item. The lowest value aspect was the neutral Information aspect, while the lowest value item was the inflation consideration item.

Does Financial Literacy Affect Household Financial Behavior? The Role of Limited Attention.

Financial literacy is essential for every individual concerned with public welfare and household portfolio choices. In this study, we investigate the impact of household financial literacy on individuals’ financial behavior using the China Household Financial Survey Data (CHFS) of 2015 and 2017. The results show that financial knowledge has significant current, long-term, and dynamic effects on financial behavior. This finding suggests that financial literacy is an important factor in shaping and improving financial behavior. Second, financial literacy can improve residents’ limited attention, and residents with high attention tend to have formal bank accounts, participate in the stock market, and engage in financial behaviors in situations such as risky financial markets. High attention also helps to improve residents’ financial behavior. This relationship suggests that financial literacy positively impacts formal bank account holding, participation in financial markets, participation in commercial insurance, participation in pension plans, and credit card holdings through limited attention channels that facilitate access to specific financial information. In addition, heterogeneity analysis showed that the impact of financial literacy on financial behavior differs significantly between urban and rural households, between men and women, and between high and low education levels. The study provides valuable insights for policy implications to enhance financial literacy, such as carrying out financial training to improve residents’ knowledge about financial aspects, which further helps to optimize household financial decision-making.