On Business Models Of Long-term Care Insurance In China

With the development of the economy and medical technologies, the Chinese life expectancyhas risen from71.4in2000to74.83in2010. The extension of life expectancy means theincrease of potential long-term care cost for the elderly and all the social demand oflong-term care insurances. However, long-term care insurance in China is still at the initialstage of development. Compared with developed countries, our business models inlong-term care insurance market fall behind in many fields such as the diversified entities,the cooperation between insurance companies and medical institutions and the diversifiedproducts, which restrict the development of the insurance. Meanwhile, the differences fromother countries in medical security systems and the economic levels result in manyimpediments to introduce some business models of long-term care insurance from thosecountries. It has become an urgent problem for the insurers how to choose a suitable businessmodel to start the insurance market.This thesis first introduces the concept of long-term care insurance and discusses its currentsituation in China. Then, the thesis analyses the problems that the insurance companies metin operating the insurance and the successful experiences from developed countries andregions. Finally, the thesis presents some suggestions in the control of risks, the design ofproducts, the investments and the industry chain related to the insurance.