From The Perspective Of Adding Long-term Care Responsibility To Optimize The Design Of Housing Reverse Mortgage Endowment Insurance Products

In July 2016,the China Banking and Insurance Regulatory Commission issued " the notice on extending the pilot period and expanding the scope of elderly housing reverse mortgage endowment insurance".Extend the trial period of housing reverse mortgage pension insurance products to June 30,2018.The product has not sold well since its launch in 2015.The main reasons are the old people's conservative ideas and the lack of diversity of products.However,the aging of China's population is serious,social pension pressure is increasing.According to foreign studies and the practice of this product,the combination of long-term care insurance and housing reverse mortgage products will bring higher welfare effect to buyers.Therefore,in order to increase the appeal of housing reverse mortgage endowment insurance products to the elderly,promote the development of long-term care insurance and reduce the pressure of social endowment.This paper will study the innovative product--housing reverse mortgage endowment insurance product embedded with long-term care responsibility.On the basis of summarizing the experience inspiration and advantages of foreign products,this paper will discuss the feasibility of developing housing reverse mortgage endowment insurance products embedded with long-term care responsibility in China.Finally,an actuarial pricing model is established for the housing reverse mortgage endowment insurance with long-term liability.First of all,housing reverse mortgage endowment insurance products with long-term care responsibilities have not appeared in China,so it is necessary to learn from foreign experience.On the basis of drawing lessons from foreign experience and combining with the actual situation of our country to design the insurance products that meet the needs of our policyholders.This paper takes the United States and Singapore as the main research objects.This paper focuses on analyzing the development history and advantages of the combination of long-termcare insurance and reverse mortgage products in these two countries.Thus summed up the foreign experience of similar products to China's enlightenment.The lessons learned from foreign experience include government policy support,favorable policies and well-regarded insurance companies selling the product.And then analyzes the unique advantages of the housing reverse mortgage endowment insurance product with long-term care function.In other words,it can realize the risk hedging of endowment insurance and long-term care insurance,relieve the pressure of endowment insurance and bring higher benefits to purchasers.Secondly,after analyzing foreign products and combining with the current situation of aging in China,this paper analyzes the feasibility of developing housing reverse mortgage endowment insurance products with long-term care responsibilities in China.Based on the previous analysis of the feasibility of housing reverse mortgage endowment insurance products in China,this paper focuses on the feasibility of adding long-term care responsibility into housing reverse mortgage endowment insurance products from the macro level and micro level.Thirdly,on the basis of the previous two chapters.Considering that most domestic scholars have only done feasibility studies on the housing reverse mortgage endowment insurance product with long-term care responsibility,but few of them have studied the establishment of actuarial pricing model for this product.Therefore,this paper focuses on establishing an actuarial pricing model for the linked products.In the pricing and design of the product,we have referred to the practice of the United States.When optimizing the housing reverse mortgage endowment insurance product,we have designed three ways to receive the long-term care fund.In this product,policy-holder has three kinds of the way get fund: one-time get means,norm gets means,increment gets means.In this paper,three methods are introduced and actuarial pricing model is established respectively.Finally,after establishing the actuarial pricing model.The actuarial numerical simulation of the housing reverse mortgage endowment insurance product with long-term care responsibility was carried out with the specific policyholder as an example.Then calculate the amount of annuities and long-term care payments that policyholders of different ages receive each year and analyze the results.Since thegrowth rate of housing price is the most important factor affecting the actuarial pricing model,the sensitivity analysis of housing price is carried out in this paper.The conclusion of this paper is that China should carry out long-term care responsibility of housing reverse mortgage endowment insurance products.Because this connection product can bring higher benefit for policy-holder and underwriter.From policy-holder respect,this product can eliminate the crowd with poor body quality to undertake this market.So you get more money for this product than if you buy long-term care insurance alone.From the aspect of the insurer,people with good physical quality are excluded from the market,so longevity risk is avoided.Thus it can be seen that the housing reverse mortgage endowment insurance product with long-term care responsibility can increase the welfare utility of the policy-holder,provide double security for the elderly and avoid risks for the insurer.