Study On Policy-based Housing Insurance For Middle And Low Income Families

Housing the middle and low income citizens who make up 60% of the urban population is a focal point of the current Housing Insurance System, this group of population is often referred as the"sandwich layer"facing a dilemma situation. They do not qualified for applying the low-rent housing while the amount of comfortable housing and price-limit housing is not enough for such a big population, further, because of their poor anti-economic risk ability and the unstable housing market condition, they has little chance to get the housing loan from the bank.The current loan system and insurance system exert positive effect for loan risk dispersal to some extent, but when considering their commercial characteristic and the stability of credit market, neither of them are suitable for the middle and low incomers.In this paper, it is proposed that loan guarantee for the middle and low income group should be policy-based leading, therefore, it is suggested that policy-based housing loan insurance system should be introduced to achieve a more completed housing loan insurance system.By analyzing the housing loan and insurance system of in the United States and Japan, it shows that these two countries adapted a way that combines commercial insurance and policy-based insurance to reduce the risk in the loan process. The commercial insurance is mainly designed for the middle and high income population which the policy-based one is for the other group. In this case, the insurance system is more specified and better performance. Though the Subprime Crisis disclosed that the American housing loan market is far from a perfect one, its defect can also teach us a lesson.The main part of this thesis draws lessons from the insurance system in the United States and Japan, and reviews the current loan and insurance system as well as takes our country's current situation in to consideration. On this ground, I analysis the way of introducing policy-based insurance including the main part, organization structure, operation and types of insurance which showcase the main difference from those of commercial insurance. Base on the previous analysis, I design four types of insurances and also work on pricing these insurance types.In the conclusion part, I analysis the problem of the policy-based insurance and put forward advise. Optimize the guarantee measures that construct a good environment and lay solid ground for the policy-based insurance.