Research Of Pricing Mechanism About Housing Reverse Mortgage

Along with population aging speed accelerating and increasing pension pressure in our country,the current old-age security gap of government expenditure has gradually increased so that traditional pension model cannot reach the daily demand of fact about increasing amount of retirees.A consummate solution of aged problem is urgently needed.Based on the situation of international economic integration,the old-age model has a trend of mutually beneficial sharing.Housing reverse mortgage has been spread in foreign countries.It is a newly financial products containing real estate,insurance industry,pension system and other areas.With regard to social endowment problem,it can serve as a buffer,not only can ease the government's pension pressure on the people,but also directly and indirectly improve the living standards of the elderly and in-service personnel.Based on the domestic and international research results and the operation mechansim of housing reverse mortgage products,this paper focuses on the pricing mechanism of the model.Whether a financial product can be accepted by people,its pricing rationality and scientific nature is the key to its success.Housing reverse mortgage products involved in the main body of participation,no matter which of the main interests of the violation,the product cannot be implemented to the financial market.Supply and demands need to maintain the enthusiasm as well as also to avoid their risks together to ensure that the product outweigh the disadvantages,making the housing reverse mortgage products to maximize the economic benefits and truly realize its inherent value.In view of the pricing mechanism of this product,this paper mainly analyzes the loan interest rate,the value of real estate and the risk of life expectancy of the elderly.It combines the experience of the US housing reverse mortgage products and the well-being of the China Insurance Regulatory Commission.The company's happiness Fanglai Po elderly housing reverse mortgage pension insurance products to find out the relevant factors in the pricing,and the impact of factors and variables to make a reasonable estimate.At the same time,on the basis of the three basic pricing models abroad,according to the reality of China,the actuarial pricing model and the variables and parameters involved are revised to obtain more accurate pricing results.In this paper,we study the pricing model of the double life state,because in the actual situation of the applicant,which is also common,there exists such a status that couples live together.The research idea is based on the one-time payment model and develops two the pricing models,one is under the single life condition and the other is under the double life state.The parameters of the above two pricing models are estimated under the preinstall conditions.And then,using the high important factors to conduct the sensitivity test related to pricing results.Finally,we put the financial development of Shanghai as the object of analysis,through the Monte Carlo method based on the important variables.that is,interest rate fluctuations and changes in house value,to simulate.Consequently,the result indicates that the existence of housing reverse mortgage mode can improve the quality of life of the retired population in later life and the elder can be more free to dominate their lifetime income and expenditure.The empirical results of this paper show that based on whether single or dual life state,the one-time payment model is very sensitive to the changes in loan interest rates and house growth rates,especially in the dual life state,the loan period is affected by the longer life expectancy.In our current pension environment,this results have an indispensable significance for the future introduction and implementation of housing reverse mortgage products.