The Research To The Influential Factors Of Long-term Care Insurance Requirements

With one-child policy generation who were born in the1970s growing to the age of marriage, our country is entering the aging society. Correspondingly, the declining fertility rate in China has caused small family size and low birth rate. However, with longer life expectancy of our elderly, the old with disability is gradually increasing and long-term care needs increase, which brings a heavy burden to the society. In this context, the care of the disabled old people has to rely on professional care institutions. While accompanied by high growth of China’s GDP, the price level has greatly increased, which drives high health care costs. More and more families can’t afford the cost of care institutions, which creates the commercial long-term care insurance.Now, the commercial long-term care insurance in our country has been in an early phase. Lacking of experience in product design, the insurance companies haven’t taken the actual needs of the elderly into account. What’s more, the higher insurance premiums lead to the little actual needs of the commercial long-term care insurance.On one hand there are huge potential long-term care insurance needs, on the other hand there are small actual needs, this contradiction has become an obstacle in the development process of China’s long-term care insurance. How the potential demand turns into real demand needs not only the efforts of insurance companies, but also the efforts of government. This paper analyzes the factors that affect our long-term care insurance needs from a theoretical perspective and empirical point of view respectively, and quantifies the relevant factors on the long-term care insurance needs in order to propose the suggestions for government and insurance companies in the development process of long-term care insurance.This paper is divided into five chapters. The first chapter is the introduction. We propose the research background, and the contents we research. The second chapter summarizes the research conclusions of domestic and international long-term care insurance papers. The third chapter introduces the definition of long-term care insurance. We explore the problem that there is the gap between the potential demand and real demand of long-term care insurance in China’s long-term care insurance market through the supply and demand analysis. In the fourth chapter, we firstly analyze the factors that influence the demand of long-term care insurance from the theoretical perspective, and then use the data of2009-2010in26provinces to establish the urban and rural model to quantify the various influencing factors of long-term care insurance demand. In the last chapter, we propose the mode of China’s long-term care insurance in accordance with empirical results of chapter four and the experience of developed countries. Then we make some policy recommendations from the perspective of government policies, standards of care, as well as commercial insurance companies.