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

The objective of this paper is to investigate the impact of COVID-19 pandemic on issuance demand, using data covering 2 41 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 exi sts in regions with worse medical treatment conditions or higher medical burden.
Source: The European Journal of Health Economics - Category: Health Management Source Type: research