Health Risks and the Decision to Purchase Commercial Health Insurance in China: the Moderating Role of Trust

From the perspective of moderating effects, this study examines the role of trust in insurance in the process of shaping households' decisions to purchase commercial health insurance (CHI). On the basis of panel data obtained from three waves of the China Household Finance Survey (CHFS), a logit model is employed to estimate the impact of health risk on CHI uptake, after which the moderating effect of trust in insurance on this relationship is analyzed. The results indicate that trust in life insurance significantly moderates the decision to purchase CHI, whereas trust in other insurance products, such as property insurance, has no significant effect in this context. This study clarifies the differentiated ways in which trust in insurance influences CHI purchasing decisions, thus contributing to the literature on the determinants and mechanisms that underlie such decisions. Furthermore, this study offers practical insights for efforts to mitigate adverse selection in the CHI market and enhancing public participation in commercial health insurance.