The Design Of Critical Illness And Endowment Insurance Based On Stochastic Interest Rate

At present,there is increasing number of the only child in China,and they will feel more pressure in the future when facing the problem of elderly care and medical care,which needs to be solved urgently.China has clearly proposed to prompt the development of the research of commercial endowment insurance and increase the types of endowment insurance.This paper explores the pricing model of comprehensive insurance for critical illness and endowment under stochastic interest rates by linking endowment insurance for life to critical illness insurance,which is of great significance in promoting the development of the commercial insurance market.At the same time,it is hoped that the innovative form of comprehensive insurance can advance the process of commercial endowment insurance,thus reducing the pressure on elderly care in China and effectively improving the quality of life of the elderly.The main research contents and conclusions of this paper are as follows:First of all,this paper continues to explore on the basis of the existing research.According to the new idea of comprehensive insurance proposed in this paper,the pricing model of comprehensive insurance for critical illness and endowment under fixed interest rate is constructed.Based on this model,a comprehensive pricing model under stochastic interest rate is constructed by adding stochastic interest rate items and introducing different stochastic processes.Secondly,in the process of comprehensive insurance pricing,the main problem is that in China,under the condition that the starting age is determined,the data on the incidence of critical illnesses of the insured in the future years are not available.Therefore,this paper mainly invokes the Gompertz mortality model to define the transfer probability existing in critical illnesses under the four-state definition of critical illness insurance,and the probability is derived and solved according to the Kolmogorov positive differential equation.The probability of maintaining health and morbidity of the insured over a period of time in pricing is estimated by bringing in the actual data of morbidity,mortality,and survival rates in the Chinese commercial insurance market,finding the non-disease-related mortality rate in the healthy state,and carrying out linear fitting to obtain the corresponding parameters.Finally,this paper selects one of the constructed pricing models of comprehensive insurance for critical illness and endowment with random probability,brings in the set values,and carries out empirical calculations and analysis.It is concluded that the comprehensive insurance has some feasibility,and the insured age,gender,and retirement age have significant effects on it,and the contribution rate of the account will be too high when the female insured’s age exceeds 45 years old,and the corresponding suggestions are given.Through the research of this paper,it is hoped that it can provide new ideas for insurance companies to innovate commercial endowment insurance products and actively develop commercial endowment insurance for life,and discuss their feasibility.