Investigation of the Factors Influencing the Purchase of Personal Accident Insurance in Tier One Cities in China

Personal Accident Insurance (PAI) has played an important role in the live-lihood security of the residents in China, which is unlike the situation in most developed countries. But in recent years, it has been showing a significant reduction in the growth rate of the annual premium, and it is even −0.16% in 2020 compared to 2019. To study the decisive factors affecting the purchase of PAI, the willingness to purchase PAI and its influencing factors have been investigated based on the data collected from the residents of Shanghai, one of the most developed cities in China. A questionnaire was conducted to collect the data and the chi-square test of independence and histograms have been used to perform analysis. Our results indicate that PAI coverage in Shanghai is about 33%. The unwillingness to purchase PAI has been mainly ascribed to the residents’ weak awareness of the PAI, due to either subjective reasons or objective reasons. Measures have been suggested to change the declining situation.