China's Long-term Care Insurance

Long-term care insurance is a kind of insurance which supply theinsured interest for those aged persons who are too weak to take care ofthemselves even are not able to make use of affiliated devices bythemselves. Long-term care insurance belongs to the health insurance, butit has the very big difference with other health insurances. Long-term careinsurance satisfies each kind of nursing request of the insured and offerscompensation for the each kind expense nursing service of the insured.However, its expense mostly occurs in the old age nursing center or otherhealth restoring organizations, somewhat the care cost then possiblyoccurs in insured's family. Long-term care insurance whose pattern can divided into two types:American pattern and Japanese pattern. As the pioneer of long-term careinsurance market, American insurance is on the path ofcommercialization management while Japanese insurance belongs to thesocial security system. The differences between developing patterns ofboth countries' long-term care insurance cause insurance plant, suppliesmain body, the insurance fund origination, the way in which the insuredpay the insurance fund and nursing way all have great differences. The present social condition, the change of family structure and thedevelopment domestic insurance business offer some feasible conditionsto develop long-term care insurance. However, our country is still adeveloping country, it has been not long since we started the commercialinsurance truly, the existing health insurance market is not developed andthe old age insurance almost approaches the blank. For the commercialinsurance company which wants to step in this brand-newproduct----long-term care insurance, such these factors as the externalenvironment is not standard, the product itself conceals high risk, theinsurance enterprise interior technic is limited, the limited public qualitypossibly bring a series of risks and problems for the development and themanagement of the product. According to the present development situation of our society andthe economy, our country should better choose the commercial insurancepattern to develop long-term care insurance. Also we must point that itshould be carried on area by area and stage by stage. To the area ,different should have different kinds of insurance, for example, thepurchase ability of family in developed area is strong, so we maypropagandize the high tariff vigorously. Oppositely, in the economicallynot developed area, we could push the product of insurance with low rate.To the stage, it could be designed to carry on by three stages.