Pricing Theory And Practice Research On Long-Term Care Insurance

The sixth national census data show that China has entered the agingsociety and the degree of aging is intensifying. At the same time, thecontradiction between the miniaturization of the family structure andelderly care become increasingly prominent. The long-term care insurancecan effectively alleviate the problem. Long-term care insurance productsfirst appeared in the United States in the1970s and appeared in successionin Germany and France in the1980s and in the United Kingdom in1990s.But the long-term care insurance Launched in China is relatively short,there are fewer types of products on the domestic market, the insuranceliability is relatively simple and the protection is inadequate. Thelong-term care insurance market is not yet fully mature and developinglong-term care insurance can effectively meet the market demand, theinsurance company seizing the market is strategic significance. Based onthis, we try to study long-term care insurance pricing problem from boththeoretical and practical aspects.The article uses the basic idea of the actuarial control cycle. Thearticle focus on the pricing of the long-term care insurance, includingof product write-up, pricing method, pricing process and considerationfactors. For product pricing, firstly actuary will define the product,clear-out insurance duty and product feature. They will be finished inthe process of write-up. In order to enhance market competitiveness,insurance companies tend to increase a number of other insurance duty inthe product, using the performance characteristics of their products toattract potential consumers. In the part of theory research of pricingmethod, the author introduces the principle of Manchester method,multimode Markov model. The author makes the pricing example applying withsimple digital and evaluate to the two methods. Lastly on the basic of principle of three methods the author make some comparisons in the helpof the aspect of technical including actuary technical and the softwareand hardware applying for pricing.Finally this paper briefly introduces the basic concepts andprinciples of actuarial control cycle system. Discusses theapplication of the actuarial control cycle in the long-termcare insurance pricing preliminarily and describes the productdevelopment practice processes and pricing assumptions.