Effects of haze pollution and institutional environment on demand for commercial health insurance.

What countermeasures should the public take as they become aware of the dangers of haze pollution? Insurance has the function of risk diversification, and little existing literature has focused on the relationship between haze pollution and commercial health insurance. This paper analyzes the impact of haze pollution on residents' demand for commercial health insurance and the heterogeneous impact of institutional environment using the 2017 China Household Finance Survey cross-sectional data (CHFS). The study finds that haze pollution raises residents' demand for commercial health insurance as their health risk perception level rises. The legal environment, market environment, and traditional culture affect the relationship between haze pollution and the demand for commercial health insurance. Further analysis reveals that the relationship between haze pollution and residents' demand for commercial health insurance can show significant regional heterogeneity, with a significant positive correlation in the eastern region and a significant negative correlation in the central and western regions. In addition, the preventive behaviors adopted by residents in the face of haze pollution can vary significantly depending on individual risk preferences. The findings of this paper are important for the public to take measures to cope with the haze pollution hazards. At the same time, insurance companies should improve their services to meet the needs of the public regarding haze pollution, which will contribute to the healthy development of the insurance industry.