Research On Housing Reverse Mortgage Endowment Insurance Pricing Under Longevity Risk

At present,our country inevitably enters the aging period,at the same time,the aging process is constantly accelerating.With the acceleration of the aging process,the current pension system is unable to cope with the increasingly prominent pension crisis.In order to alleviate this crisis,it is necessary to explore an effective pension model as soon as possible.Under this background,the housing reverse mortgage endowment insurance came into being.Housing reverse mortgage endowment insurance is a new endowment product,which can guarantee that the elderly have the right to use the house,mortgage the real estate,so as to obtain a stable cash flow of a new endowment model.This paper first describes the development status of the housing reverse mortgage endowment insurance at home and abroad,analyzes the existing problems of the housing reverse mortgage endowment insurance in the current Chinese market-"Housing Laibao",and makes pricing improvements.From an existing in the design of this kind of product,you can see its future payment without considering the mortality improvement of longevity risk,therefore,in view of the new endowment insurance,housing reverse mortgage endowment insurance,from the factors affecting its pricing,select mortality study its effect on the housing reverse mortgage endowment insurance pricing.However,the mortality rate is divided into static mortality rate and dynamic mortality rate,and the static mortality rate can not well show the direction of longevity,so this paper intends to predict the future mortality rate through the Lee-Carter model.In contrast to static mortality,longevity risk can be avoided.The specific operation is to estimate the parameter values in the Lee-Carter model through the existing population mortality data,and then bring the estimated values into the time series prediction model to predict the future parameter values,and finally bring the predicted values into the Lee-Carter model to obtain the mortality prediction data in the future years.In terms of pricing,there are various pricing theories.Based on the availability of data,this paper adopts actuarial insurance model to construct a comprehensive pricing model of housing reverse mortgage endowment insurance products based on the fluctuations of interest rate,housing value and mortality.In this pricing system,we discuss the annuity payment method,and by comparing the dynamic mortality rate with the mortality rate in the life table,we study the impact of the mortality rate on the housing reverse mortgage endowment insurance pricing.After pricing,use the technique of empirical analysis,this paper assumes that an old man to buy housing reverse mortgage endowment insurance,by comparing the static mortality and pension payment amount under stochastic dynamic mortality,with premiums on the forehead,observation of the elderly pension for the different levels,to determine the longevity risk’s influence on the housing reverse mortgage endowment insurance pricing.In the pricing,it performs better than the pricing based on the empirical life table.The results show that the insurance payment standard derived from the random dynamic mortality data is lower than the insurance payment standard derived from the empirical life table.This shows that when the insurance company prices the reverse mortgage endowment insurance according to the static mortality rate,the insurance payment level is higher,which will cause the loss of the insurance company in the long run.There are two innovations in this paper.First of all,in terms of product design,according to China’s national conditions,the housing reverse mortgage endowment insurance product is designed locally in terms of operation mode.Secondly,in terms of pricing method,this paper constructs a pricing model under actuarial theory by combining random dynamic mortality.Through empirical analysis,it can be seen that with the increase of the applicant’s age,the amount of payment faced by financial institutions will increase,thus affecting their earnings.