Research On The Model Building And Pricing Of New Long-Term Care Insurance With Community Currency

Many countries and regions all over the world entered the states of population aging since the 50s of last century.And now it shows a trend of accelerated development.As a country with the largest number of population,the elderly in China account a very big proportion.China became an aging of population nation since the year 2000 and we are already in the rapid development stage.The severe population aging causes a series of social problems,especially the needs of nursing care and social security that the elderly are facing with.These have already become a focus that many governments and academia are paying attention to.Developed countries began to implement long-term care insurance system in order to solve the dilemma since the late 20th century.Long-term care insurance largely alleviated the severe situation of aging population.It guarantees the elderly's basic needs of nursing care.The insurance companies in China also carry out long-term care insurance businesses,but they bring little effect.On the one hand,basic national conditions of our country decide that we cannot fund a lot of money to pension industry,and the average income of residents failed to reach the level of buying long-term care insurance.On the other hand,the shortages of nursing staffs and resources make it impossible to meet the huge long-term care needs.Long-term care insurance needs innovations in China.The breakthrough is effectively meeting long-term care needs of the elderly without increasing government 's financial pressure and people's living expenses.Community currency appears to be a good solution to these problems.As a kind of initiate monetary thought and practice,community currency can effectively deploy the unmet demands with unused resources.It has already been widely used all over the world.If community currency can be used in long-term care insurance as a medium of exchange,we will be able to not only make up the huge funding gaps of pension industry,but also increase nursing staffs in the whole society.To the existing insurance system and social security system,it is a bold innovation and a kind of supplement to build new long-term care insurance with community currency as a medium of exchange.This can solve our pension dilemma in theory.Therefore,this article builds a model of new long-term care insurance with community currency as a medium of exchange.Long-term care insurances in foreign countries normally provide nursing care services as payment but not just money.So this paper use their experience as references to design a new model that parts of insurance fee be paid by community currency and people will get nursing care services directly.It needs government to bring in community currency to the society,and encourage residents to get community currencies through providing simple nursing services to the elderly with using their free time.Then these residents will be able to afford long-term care insurance using the community currencies they got as part of the premium.Then this paper explores the model of new long-term care insurance pricing with Manlian Model,brings in input coefficient of nursing services and sets the proportion of community currency,calculates the average time of services that applicants should provide and explains it with an example.Finally the paper summarizes the main conclusions of the study and analysis and suggests a prospect.This paper can be a reference for the decision-making level to formulate policy and for insurance companies to do businesses.