STUDY ON THE CORRELATION EFFECT OF INCOME LEVEL ON CONSUMER PSYCHOLOGY AND INSURANCE BEHAVIOR

Abstract. At present, the consumer psychology of some consumers does not match with the insurance behavior because of insufficient income. The performance is that many people who have the intention to insure do not produce the insurance behavior. Therefore, it is one of the insurance marketing strategies that how to break the hesitancy of those people who have the intention to insure to become insurance customers. From the perspective of behavioral economics, this paper puts forward the hypothesis that income level has correlation effect on consumer psychology and insurance behavior, conducts the empirical study, constructs the model of income level—consumer psychology— insurance behavior correlation effect, reveals the transformation mechanism of policy holder’s psychology—willingness—behavior, and puts forward some reasonable suggestions for effectively stimulating consumption to increase the insurance density. Its study value lies in guiding the insurance practice with the basic theory of behavioral insurance, which is helpful for both parties to have a win-win situation and promoting the social security function and coverage of insurance, so as to promote the healthy and orderly development of insurance industry.