Case Study Of Shanghai Mortgage Products

With the aging of population and increasing of social endowment pressure,the traditional model of family pension and pension system is difficult to cope with the serious crisis of aging.Therefore,we need to explore and establish a new pension model.Housing reverse mortgage is the best way to solve the current pension problem in China.It can not only reduce the government's pension pressure,but also to solve the pension problem of the elderly.Happy Life is representative of the new pension model China.Its insurance products ‘real happiness,elderly housing reverse mortgage endowment insurance A ' has been officially approved by the China Insurance Regulatory Commission on March 23,2015,and successively in Beijing,Shanghai and other pilot areas.But this type of insurance products is far from covering the entire target group,it can't relieve the aging of the population the crisis.Therefore,on the basis of the Happiness Life,this article makes a case study from the perspective of the insurance clauses of the company,points out the defects of the price design,and puts forward some suggestions for improvement.In this paper,I make a qualitative case study and quantitative design improvement of the insurance regulations of the Happiness Life through the analysis of product differentiation and econometric empirical analysis.Through analyzing the differences of insurance products of housing reverse mortgage in China and foreign successful case,this paper pointed out the advantages of the product life of Happiness Life.At the same time,the article also pointed out that the existence of three product defects of Happiness Life.They are insurance rates of Happiness Life are not differentiated and can't reflect the actual value of real estate;husband and wife insured special agreed pricing method doesn't take the family attributes into account and product diversification.Pricing is the key to the successful implementation of reverse mortgage.In real life,most of the elderly family of two couples are alive at the same time.The life of a couple of insured life insurance agreement is more practical than a single application of the elderly.But the price of the product in the couple's insurance is just sum of the two single life and it doesn't consider the attributes of the family.Therefore,this paper establishes two life pricing model in the pricing process which is based on the single life.And I divided two life into two life state joint life status and the last survivor to improve the product defects of Happiness Life.At the same time,through the research of the product pricing design in Shanghai,the paper solves the problem of the lack of the premium rate.Finally,the paper carries on the numerical simulation to the single and double life model,and makes the sensitivity analysis of house price growth rate and interest rate fluctuationBased on the above analysis,I draw the main conclusions of this paper.In the premise of the same situation,the single life state of a one-time amount is less than the sum of the two life state.Based on double life model,combined with the survival state of recipients was higher than last year's annual amount of recipients survivor status.For the healthy and has longer life expectancy elderly,it is more effective to improve the living standard of the old people to get paid annually than the one-time payment.The sensitivity analysis results show that the sensitivity of the pricing results to the interest rate changes is less than the change in the price of the single life state and the double life state.No matter for the change of house price or interest rate,the results of the double life state are more sensitive than the single life state.A single life state to receive a one-time amount is lower than the double life state of the lump sum amount.And double life is more sensitive than single life on the price of interest rate fluctuations and changes,it's because double life need to compensate for the extra risk.These two points in the double state of life,the couple enjoy more real estate value-added benefits.It solved the couple's agreement to insure the couple's life insurance pricing defects.Whether it is a single or double life,the sensitivity of the results of the price changes are greater than the rate of change in interest rates,indicating that the growth rate of housing prices is the key to the impact of pricing accuracy.Therefore,different regions' pricing should be based on the price growth rate of regional differentiation pricing.Under the condition of double life,families with different income can choose different types of products.For example,no income families choose the last survivor status of pension payment.A source of economic income but not enough to bear the cost of living two families choose the joint life status pension payment.This enriches the diversification of insurance products and reduces the additional risk of policyholders.