The impact of digital literacy on rural residents' choice of commercial insurance

As an effective supplement to social insurance, commercial insurance plays a significant role in maintaining social stability and promoting national economic development, and digital literacy has a profound impact on financial decision-making for individuals and families. Based on the 2018 data from the China Household Panel Survey, this paper innovatively approaches the issue from the perspective of digital literacy, constructing a digital literacy indicator system that includes three dimensions: digital device usage, scenario application, and information acquisition. Using Probit, OLS regression, Tobit models, and mediation effect models, the study empirically tests the direct impact of digital literacy on farmers' willingness and expenditure on commercial insurance. The baseline regression results indicate that improved digital literacy has a significant impact on the likelihood and extent of household participation in commercial insurance. Heterogeneity analysis reveals that the impact of digital literacy on household participation in commercial insurance varies significantly across different education levels, household income levels, and regions, with varying effects on household heads. Mechanism testing reveals that digital literacy promotes household participation in commercial insurance by enhancing household income levels and expanding social networks. Based on these findings, the paper proposes policy recommendations, including increasing investment in new digital infrastructure, conducting digital skills and knowledge education, and leveraging digital technology to build new business models. This approach provides a scientific foundation for enhancing rural insurance coverage and promoting rural revitalization.