A Study On The Development Of Reverse Mortage In China

The aging of population is escalating in China, Which is challenging the sustainable development of Chinese economy seriously. The emergence and introduction of reverse mortgage has great significance to relieve the aging crisis. Reverse mortgage will greatly improve the life standard of elder, being of huge benefit to activating social sunk capital, realizing better distribution of social resources, Provoking innovation of financial instruments and establishing new generation relationship which fits into market-oriented economy.Firstly, this paper systemically explains relevant theories of reverse mortgage, including basic concepts, constituting elements, basic features and the difference from the traditional mortgage.Then, take the United States as an example, introducing the situation of the American reverse mortgage, and summarizing the successful experience and the main problems.And then, analysis the actual conditions of developing reverse mortgage in China, including the necessity, the feasibility and the facing obstacles. Meanwhile, based on our actual situations, proposes the author's personal opinions of the China's development strategy for the implementation of the reverse mortgage, including the guiding ideology, operating mode, supply and demand orientation, the role of government and mode of operation.At last, with reasonable assumptions of the factors related, studies the pricing on reverse mortgage through insurance actuarial theory, based on the use of life table probabilities of death. The assessment to the result of the model implies that reverse mortgage can bring benefit to both the supply and demand sides.