China news - World Bank advocates universal public long-term care financing system for China
Source: Asia Insurance Review | Jan 2019
Private long-term care insurance, mostly in the commercial insurance sector, in China as a way to enable people to pay for services, most likely will not work, says the World Bank.
The report, titled Options for Aged Care in China, said, “In no country is private long-term care insurance a major source of long-term care financing, except where it is offered as an alternative to a mandatory public system. Experience in other countries shows that private long-term care insurance is simply too expensive and that insurers cannot price policies accurately.”
The World Bank recommends instead that in the medium to long run, China should consider developing a universal public long-term care financing system. This approach recognises that needing long-term care is a normal life risk that the vast majority of people cannot address on their own.
The World Bank says that mounting pressures resulting from rapid demographic shifts and socioeconomic developments in China underscore the urgent need to develop an aged care system, and these pressures will only intensify going forward.China needs a coherent policy framework and corresponding institutions to monitor ongoing socioeconomic changes and continue to expand social investments that better match the needs and demands for aged care services and their supply, the report says. A
This news story is taken from Asia Insurance Review’s unique eWeekly China newsletter.
eWeekly China focuses on the world’s fourth largest insurance market - in English – providing the most up-to-date news to give readers insights and overviews of the Chinese market.
A close look at detailed government policies, timely updates on regulatory changes, information on the presence and performance of domestic insurance companies and their foreign counterparts; topical strategic insurance issues and the ways to explore and enhance your business to yield higher efficiency and profitability; information on operational and strategic concerns of brokers, insurers, reinsurers and consultants; comments and opinions from experts on major discussion points affecting the market.