Research On The Design And Pricing Of Insurance Products For Serious Diseases Of The Aged

With China entering the age of population aging in 2000,the number of the elderly population in China is rising sharply,and their health protection is also facing severe challenges.This is not only related to the long-term stability of the country,but also affects the hearts of all the people,which is a long-term strategic task.Shanghai University of Finance and Economics,Best Life Reinsurance and Ping An Health Insurance jointly issued the 2021 White Paper on Health Security Needs for the Elderly.According to the White Paper,in the commercial health insurance market,not only some malignant tumors with high incidence are not adequately guaranteed for the elderly,but also the chronic diseases that plague the elderly the most.Once the elderly become patients with chronic diseases,most of them will be rejected by insurance companies.In China,about 260 million elderly people with chronic diseases are not covered by commercial health insurance.Among the respondents,74.6% of the elderly are most worried about the risk of major diseases in old age.The incidence of serious diseases will increase with the growth of age,and some serious diseases with a high incidence of the elderly population need long-term treatment,such as Alzheimer’s disease,Parkinson’s disease,etc.The occurrence of serious diseases in the elderly will bring a large economic burden to individuals and families.Commercial critical disease insurance is playing an increasingly important value in the process of protecting the health risks of the aged.Individuals and families are faced with high medical expenses.Commercial critical disease insurance plays an increasingly important value in the process of protecting the health risks of the aged.The biggest difference between critical disease insurance for the elderly and common critical disease insurance is the stipulation of the insured age in the insurance contract.The research purpose of this paper is to design a critical disease insurance product for the elderly to meet the health security needs of the elderly and prevent a family from returning to poverty due to illness after facing huge medical expenses.This paper mainly studies the following aspects: First,the basic risk of serious diseases in the elderly is analyzed from the aspects of disease characteristics,incidence rate of serious diseases in the elderly and economic losses to individuals and families caused by serious diseases in the elderly,hoping to design more targeted insurance products and establish a theoretical basis for the subsequent form design of insurance products for serious diseases in the elderly.Second,to the present aging degree of population continues to deepen,the elderly population dependency ratio is increasing;At present,there is a large gap in insurance coverage for serious diseases in the insurance market,and the elderly need adequate medical insurance.This paper analyzes the critical disease insurance products and anti-cancer insurance products in the critical disease insurance market from the aspects of insurance age,insurance liability and insurance amount,and points out the necessity of developing critical disease insurance for the aged in China.This paper analyzes the feasibility of developing serious disease insurance for the aged from the following aspects: the release of the Critical Disease Incidence Table of China’s Personal Insurance Industry(2020),the support and promotion of national policies,and the subdivision of commercial health insurance.Third,the product form of critical disease insurance for the elderly is designed.The main product is critical disease insurance for five years,and the insurance benefits will be paid when the elderly insured people suffer from serious diseases agreed in the insurance contract during the insurance period.Fourthly,reasonable actuarial assumptions are made on the incidence rate,mortality rate and expense rate of major diseases set by relevant regulations of China Banking and Insurance Regulatory Commission in the calculation of product rates.Considering the stochastic fluctuation characteristics of interest rates,this paper adopts stochastic interest rate actuarial assumption,and briefly introduces and analyzes the basic application principle of stochastic interest rate CIR model.The yield of Chinese national debt at the end of each month from January 2005 to October 2022 and the least squares estimation method were used to estimate the parameters of the stochastic interest rate CIR model,and the parameters were put into the stochastic interest rate model to predict the future market interest rate.The interest rate data calculated by CIR model and multi-state Markov model are combined to calculate the premium of the insurance product designed by this paper.The structure of this paper is as follows: The first chapter analyzes the research background and significance of this paper,and summarizes the research literature at home and abroad.Chapter two mainly analyzes the basic risk of major diseases in the elderly,and identifies and evaluates the risk of major diseases in the elderly.Chapter 3analyses the necessity and feasibility of developing critical disease insurance for the elderly and points out the urgent need for research and development of major disease insurance products for the elderly.The fourth chapter follows the principle of insurance product design,and introduces the product form of the aged critical disease insurance designed in this paper.The fifth chapter makes various actuarial assumptions,provides actuarial data for the pricing of critical disease insurance products,adopts stochastic interest rate assumption for the product’s actuarial pricing,and analyzes the advantages of stochastic interest rate actuarial pricing.Chapter six summarizes the research and puts forward relevant policy suggestions.