Income volatility and household commercial insurance allocation

This paper uses the survey data from the China Household Finance Survey and Research Center (CHFS) in 2017, 2019, and 2021 as the research sample for the study. It explores household income volatility's impact on commercial insurance consumption and the moderating role of risk preference. It is found that income volatility has a significant positive effect on the willingness of household commercial insurance allocation; risk preference moderates the positive effect of income volatility on household commercial insurance allocation; and further analysis of urban-rural heterogeneity reveals that the moderating effect of rural residents' risk preference on the impact of income volatility exists significantly.