Research On Chinese Long-Term Care Insurance Products Development

With the serious trend of the aging of population all over the world, Long-Term Care has become one of the important themes worldwide. China has been in the aging society since2000.As the most populous country in the world, aging situation is quite serious. There are some characteristics about Chinese aging situation:a large number of elderly population, fast growing of elderly population, lots of old people who have difficulties. And our country’s situation is some kind of "aging before getting rich". While with the appearance of "four two two","four two one" family structure and "empty nest family", developing The Long-Term Care Insurance that is suitable for our country is very urgent. Especially we are in the circumstances of the high cost of care and imperfect social security system. However, there are few real Long-Term Care Insurance products in Chinese insurance market. What’s worse, the existing products can’t be able to meet Long-Term Care need for the old. Therefore, how to develop the Long-Term Care Insurance products to counter the aging trend and to meet elderly people’s need is an urgent problem for us to solve.The background of this paper is the aging of population and the core of the paper is commercial Chinese Long-Term Care Insurance products. First of all, the author describes the advanced Long-Term Care Insurance products from foreign countries. Based on this, the author analyzes restricting market factors of our Long-Term Care Insurance development. Then, current status and problems of Long-Term Care Insurance on terms in our country are described which is the key point of this paper. Overall, the study is from coarse to fine. The suggestion of our Long-Term Care Insurance products mentioned in Chapter five undertakes the problems in Chapter four, which mainly aims at terms. Risk controlling is quite important due to the complexity of Long-Term Care Insurance products. Therefore, risk controlling on terms of Long-Term Care Insurance products is introduced as the last part of the paper. The following are basic framework and ideas of this paper:Chapter one is the preface. In this part, the author describes the background and significance of this paper, the impact of aging of population on Long-Term Care Insurance, an overview of the basic situation of Long-Term Care Insurance and introduces the study and views from other scholars on the Long-Term Care Insurance currently. Meanwhile, the author describes the purpose of this paper, the contents and methods of this paper.Chapter two is foreign Long-Term Care Insurance products analysis and implications for China. First of all, the author describes the Long-Term Care Insurance in American in detail from the background, coverage, underwriting way, premiums collecting and insurance benefits. And take WellPoint’s products as an example to highlight what we can learn from the Long-Term Care Insurance products in American. Meanwhile, it briefly describes Japanese Long-Term Care Insurance products which are worthy to us. Based on this, the author proposes the reference and inspiration for the development of our Long-Term Care Insurance.Chapter three is problems on market of our Long-Term Care Insurance. The author analyzes from three points of view:insurance market, insurance demand side and the supply side. The problem about the market is that policies and regulations are not sound, fiscal policy support is not enough and lack of care facilities and professionals. The problem on insurance demand side is low level of people’s income, lack of the awareness of the Long-Term Care Insurance and moral hazard. The problem on the supply side is lack of the correct understanding of Long-Term Care Insurance and technological experience and lack of good communication with medical institutions.Chapter four is current status and problems of Long-Term Care Insurance on terms in our country. The author lists our existing Long-Term Care Insurance products, analyzing the problems on terms through the comparison with pension insurance products and advanced products from foreign countries. The problems mainly include coverage limitation, expensive premiums, no choice of exemption period, inadequate long-term care protection, single way of insurance benefits, lack of inflation terms and serious homogeneity.Chapter five is the suggestion of our Long-Term Care Insurance products. The author makes relevant recommendations on terms through micro-level based on problems mentioned in Chapter four. Risk controlling is quite important to the insurers due to the complexity and specificity about Long-Term Care Insurance products. The author also makes relevant recommendations about risk controlling on terms of insurance products.