Crowding out Effect of Commercial Insurance Holding on Residents' Self-funded Preventive Health Investment

In recent years, according to the national health development strategy, the national health literacy level has improved compared with the past, and residents' willingness to purchase commercial insurance has increased, but the groups with chronic diseases and sub-health status are still expanding. The purchase of commercial insurance should play a role in promoting self-funded preventive health investment, but in fact there is indeed a crowding-out effect. Based on this, this paper analyzes the relevant mechanisms and reasons from the perspectives of family asset allocation theory and behavioral finance. It is found that the purchase of commercial insurance can bring a certain role to residents. For risk-averse residents, the purchase of insurance can gain short-term benefits in limited expenditure, so residents will subjectively think that insurance is more cost-effective than self-funded preventive health investment, which brings long-term and hidden benefits. The crowding-out effect brought by the holding of commercial insurance will also bring practical harm such as increasing the risk of chronic diseases and compressing the coverage of commercial insurance with the increase of the degree.