Product Design And Pricing Studies For Rural Long-term Care Insurance

The massive exodus of surplus labour from rural areas to urban areas has exacerbated the phenomenon of an ageing rural population,with most rural areas now entering a moderate ageing phase.In this context,the issue of care for the elderly in rural areas is also becoming increasingly prominent,and therefore the establishment of rural long-term care insurance is a major trend,and there is currently no long-term care insurance product for rural areas.The paper therefore analyses the development of rural mutual care homes as a provider of long-term care services in rural areas,which can reduce the premiums for long-term care insurance,improve the standard of living of the elderly and facilitate the generalisation of the scheme in rural areas.This paper firstly compares the long-term care insurance scheme in China and abroad,and uses it as a basis for the study of rural long-term care insurance providers and the scope of coverage.The paper then analyses the current situation of the elderly disabled population in rural areas,the provision of care services and the economic development and purchasing situation in rural areas,and demonstrates the necessity and feasibility of long-term care insurance in rural areas.On this basis,the design of a long-term care insurance scheme is presented.At the macro level,a model for the operation of a rural long-term care insurance scheme is proposed,in which commercial insurance is used to provide care services through the current rural mutual care institutions and the government and assessment agencies cooperate to provide protection for the rural elderly.At the micro level,long-term care insurance is designed to suit rural areas by setting out the rules of insurance,liability and benefits,etc.The final pricing of long-term care insurance is based on a Markov model that compares the current CHARLS data with the current assessment criteria and calculates a health state transfer matrix.Based on this,the product design of this paper is as follows.Rural long-term care insurance should be an insurance that provides a full chain of care protection by commercial insurance companies cooperating with rural mutual care institutions and assessment agencies under government supervision to provide insurance services,care services and assessment services respectively for the insured,and this insurance model can also attract other social institutions to participate in the construction of rural long-term care insurance.Specifically for the product,the Rural Long Term Care Insurance provides for an insured age of 18-59 years and a coverage period of 60 years and above,providing health management services and care services to the insured.The final pricing of the product shows that the premiums paid by women are higher than those paid by men,but when compared to the current per capita disposable income in rural areas,they are all within the range of affordability,so the rural long-term care insurance designed in this paper has the advantage of being more favourable than other care insurance policies and can provide long-term protection,making it suitable for rural areas.The paper also suggests that the current group of long-term care purchasers should not only include the middle-aged and elderly,but also the young,who have a higher purchasing power and a dual need for long-term care insurance.Finally,the paper analyses the’investment’ and ’savings’ aspects of taking out rural long-term care insurance and argues that long-term care can be accepted by rural people for long-term development.The paper therefore provides a reference for the promotion of long-term care insurance in rural areas nationwide,and provides a reasonable development path for the development of rural mutual care institutions to further address the serious problem of an ageing rural population.