Endowment Insurance Research Articles

Health, Insurance, and Social Capital’s Impact on Housing Debt and Assets Using a Partial Least Squares Structural Equation Modeling Technique

China’s current real estate market transactions are relatively subdued; hence, finding means to repower the engine for further development becomes vital. However, few studies investigated the relationships between family non-economic factors, assets, and housing debt. This study highlights the impact of family members’ health, insurance, and social capital’s impact on housing debt and assets. The family-size data from the China House Finance Survey are analyzed using a partial least squares structural equation model. The results indicate that family members’ poor health and uninsured endowment insurance individuals negatively affect housing debt and family assets. In contrast, the impact of medical insurance is insignificant. Besides, social capital substantially and positively impacts assets and debts. The labor supply and the proportion of kids have a negligible impact. Hence, this study recommends that loan-offering enterprises may change their marketing targets according to family situations, such as health status and insurance coverage. The government might promote endowment insurance and strengthen higher education to revitalize the real estate industry.

Interrelationships Among Individual Factors, Family Factors, and Quality of Life in Older Chinese Adults: Cross-Sectional Study Using Structural Equation Modeling.

China's rapidly aging population necessitates effective strategies for ensuring older adults' quality of life (QOL). While individual factors (IF) and family factors (FF) are known to influence QOL, existing research often examines these factors in isolation or focuses on specific subpopulations, overlooking potential interactions and mediating pathways. This study aims to examine both direct and indirect pathways connecting IF and FF to older adults' QOL, focusing on the mediating roles of health risks (HR) and health care service demand (HSD). This study uses structural equation modeling (SEM) to analyze cross-sectional data from 8600 older participants in the 2015 China Health and Retirement Longitudinal Study (CHARLS), a nationally representative study using a multistage probability proportional to size sampling method. Among the 8600 participants, the majority (5586/8502, 65.7%) were aged 60-70 years, with a near-equal distribution of males and females at around 50%. The average PCS score was 76.77, while the MCS score averaged 59.70. Both IF (β=0.165, P<.001) and FF (β=0.189, P<.001) had a direct positive effect on QOL. Furthermore, the indirect effects of IF (β=0.186, P<.001) and FF (β=0.211, P<.001) through HR and HSD were also significant. In the direct model, IF and FF had a greater impact on MCS (β=0.841) than on PCS (β=0.639). However, after including the 2 mediating factors, HR and HSD, the influence of IF and FF on MCS (β=0.739) became consistent with that on PCS (β=0.728). Subgroup analyses revealed that the direct effect of IF on QOL was significant in the 60-70 age group (β=0.151, P<.001) but not in those over 70 years old (β=0.122, P=.074). Comorbidity status significantly influenced the pathway from HR to HSD, with older adults having 2 or more chronic diseases (β=0.363) showing a greater impact compared to those with fewer than 2 chronic diseases (β=0.358). Both IF (education, per capita disposable income, and endowment insurance) and FF (satisfaction with a spouse and children) directly impact the QOL in older people. Meanwhile, IF and FF have equal influence on QOL through the mediating role of HR and HSD. Recognizing the interplay among these factors is crucial for targeted interventions to enhance the well-being of older adults in China.

Delayed retirement, pension insurance and income inequality

PurposeTo investigate the potential of raising the retirement age and reforming pension insurance in mitigating intra- and inter-generational income inequality, thereby offering empirical support for governmental policy formulation.Design/methodology/approachA dynamic general equilibrium model with intertemporal iteration is developed to comprehensively assess the impact of policies raising the retirement age on income inequality, taking into account delayed retirement, survival probability, and pension insurance. The theoretical hypotheses are validated through simulation using MATLAB.FindingsThrough theoretical analysis, it is determined that, given certain assumptions are satisfied, raising the retirement age can effectively mitigate intra-generational income inequality, inter-generational income inequality under both the pay-as-you-go and fund accumulation systems. Simulation results indicate that, under current parameter settings, raising the retirement age can reduce the Gini coefficient. Furthermore, this study reveals that regardless of the pay-as-you-go or fund accumulation system, pension insurance serves as a mechanism for income redistribution and alleviating income inequality.Originality/valueIt offers a theoretical foundation for the government's policy on delayed retirement and endowment insurance.

Joint-Life Endowment Insurance Premium Calculation Based on Makeham Mortality Law

&lt;p&gt;This research determined life insurance premiums joint-life endowment insurance, that is the insurance that the benefit is paid if one of the insureds dies or all the insureds survive until the end of the contract. This premium calculation uses one of the famous mortality laws, that is Makeham. Makeham mortality law is an updated law of Gompertz's mortality law where the reason that makes Makeham different from Gompertz is the death calculation factor, because Gompertz only takes the cause of death from the age factor. Even though the death factor can also come from accidents, therefore, Makeham combined the two causes of death so that it is corresponded to the actual factors. The Makeham law will function to create the Makeham assumption mortality table with trials and errors method to construct Indonesia Mortality Table 2019 (TMI IV). This construction requires parameters that must be founded to determine the survival probability ( ) of the Makeham. After finding the , calculate the annual premium by dividing the net single premium by the life annuity. The joint-life endowment insurance premium calculation in this study uses 10-year protection with a 5.75% for interest rate and Rp1,000,000,000 for the benefit, and based on the research, the annual premium for this married couple is Rp78,016,785, where the premium calculated based on Makeham will get a higher premium than calculated based on TMI 2019, which gets an annual premium Rp77,410,954.&lt;/p&gt;

Analysis of demand and influencing factors for smart senior care among older adults in underdeveloped regions of western China: a case study of Lanzhou

IntroductionWith the rapid development of artificial intelligence and Internet-of-Things technology, internal support systems among families are gradually weakening, which can no longer satisfy the current demands of older adults. In this context, smart senior care has become a new development direction. However, existing studies on the demand for smart senior care are primarily concentrated in economically developed provinces and mega-cities in eastern China; their research results or conclusions may not apply to underdeveloped areas in the Western region. Therefore, our study selects Lanzhou as a representative city in an underdeveloped western region to investigate the demand of older adults for smart senior care and analyze the influencing factors.MethodsThis cross-sectional study included 4,815 older adults from Lanzhou, China. A structured questionnaire was designed to investigate the demands of the older adults for smart senior care and analyze thie influencing factors. The Chi-square test was used for single factor analysis of each variable. The logistic regression model included the statistically significant variables to analyze factors influencing older adults’ demand for smart senior care. A significance level of p &amp;lt; 0.05 was considered statistically significant.ResultsAmong the surveyed older adults, 1,625 (33.75%) expressed a demand for smart senior care. The finding indicated that participants’ age, level of education, marital status, monthly income, number of children, type of endowment insurance, and knowledge of smart senior care were significantly associated with their demands for smart senior care (p &amp;lt; 0.05). Notably, medical care emerged as the smart senior care service with the highest demand rate (79.45%).ConclusionIn Lanzhou, older adults show a low level of knowledge but a high demand for smart senior care. Their demand is influenced by personal, family, health conditions, senior care security, and other factors. To advance smart senior care, government departments should accelerate the improvement of the laws and regulations on smart senior care while vigorously enhancing the service’s publicity to raise knowledge about it. Additionally, the service contents for smart senior care should be expanded to meet the diversified demands of older adults.

Study on the evaluation and influencing factors of contracted residents on the coordination of primary medical institutions.

The implementation of family doctor contract service is a pivotal measure to enhance primary medical services and execute the hierarchical diagnosis and treatment system. Achieving service coordination among various institutions is both a fundamental objective and a central element of contract services. The study aims to assess residents' evaluations and determining factors related to the coordination of health services within primary medical institutions across different regions of Shandong Province. The findings intend to serve as a reference for enhancing the coordination services offered by these institutions. The study employed a multi-stage stratified random sampling method to select three prefecture-level cities in Shandong Province with different economic levels. Within each city, three counties (districts) were randomly sampled using the same method. Within each county (district), three community health service centers and township health centers implementing family doctor contract services were selected randomly. Face-to-face questionnaire surveys were conducted with contracted residents using the coordination dimension of the revised Primary Care Assessment Tools Scale (PCAT) developed by the research team. Data analysis was conducted using such methods as one-way analysis of variance and multiple linear regression. The sample included 3,859 contracted residents. The coordination dimension score of primary medical institutions averaged 3.41 ± 0.18, with the referral service sub-dimension scoring 3.60 ± 0.58 and the information system sub-dimension scoring 3.34 ± 0.65. The overall score of the referral service sub-dimension surpassed that of the information system sub-dimension. Regression results indicated that the city's economic status, the type of contracted institutions, gender, education, marital status, income, occupation, health status, and endowment insurance payment status significantly influenced the coordinated service score of primary medical institutions (p < 0.05). The coordination of primary medical institutions in Shandong Province warrants further optimization. Continued efforts should focus on refining the referral system, expediting information infrastructure development, enhancing the service standards of primary medical institutions, and fostering resident trust. These measures aim to advance the implementation of the hierarchical diagnosis and treatment and two-way referral system.

Can major public health emergencies increase the participation of commercial insurance? Evidence from China

BackgroundPublic health emergencies have a lasting impact on a country's economic and social development. However, commercial insurance can disperse these negative consequences and reduce risk losses.MethodBased on the Chinese Household Tracking Survey and Peking University Digital Inclusive Finance Index, this study employed a difference-in-differences model to test the impact of the COVID-19 outbreak on commercial insurance participation and the impact mechanism.ResultsThe analysis showed that the outbreak of COVID-19 improved residents' risk perception, risk preference and digital finance and promoted their participation in commercial insurance, commercial endowment insurance, and commercial medical insurance.ConclusionMajor public health emergencies can increase commercial insurance participation, but the promotional effect of commercial insurance on rural and low-income individuals is relatively limited. To tap into potential customers, financial institutions should focus on vulnerable societal groups. This study supplements the relevant literature on the impact of major public health emergencies on commercial insurance participation.

The effects of digital economy development on social insurance funds revenue: Evidence from China.

China has experienced rapid development in the digital economy. Using data from 30 provinces in China between 2011 and 2017, this paper constructs a two-way fixed effects model to study the effects and mechanisms of the digital economy development on social insurance funds revenue. An increase of one unit in digital economy development led to a 0.56% increase in basic endowment insurance funds revenue and a 0.33% increase in basic health insurance funds revenue. The digital economy increased the social insurance funds revenue by promoting employment and increasing income. Furthermore, the effects of digital economic development on social insurance funds revenue were heterogeneous for different levels of economic development and urbanization. The conclusions stood after robustness tests by changing the method of weighting the digital economy indicators and using instrumental variables. This paper confirmed the positive role of the development of the digital economy in increasing the revenue of social insurance funds from the perspective of quantitative research and explored the mechanisms in depth. In order to increase social insurance funds revenue, it is essential to accelerate the development of the digital economy, especially in regions with lower economic development and urbanization, and to address the needs of the technically unemployed and those engaged in flexible employment.

ANALISIS PREMI TAHUNAN INDIVIDU DENGAN MANFAAT YANG DIBAYARKAN PADA AKHIR TAHUN KEMATIAN

Life insurance is an insurance product that provides guarantees in the form of benefits to the insured's family if the insured dies in the future. The amount of this benefit is influenced by the amount of the annual premium paid by the insurer to the insured. The researcher will calculate the amount of the individual's annual premium on endowment insurance. The researcher will use a fixed interest rate to calculate the discount factor and the Gompertz distribution approach to calculate the insurer's chance of survival. Previously, the researcher will estimate the Gompertz distribution parameters using the Maximum Likelihood Method (MLE) based on the 2011 Indonesian Mortality Table (female). Furthermore, the researcher will calculate the insurer's chance of survival using the Gompertz distribution to obtain the actuarial present value of the initial term annuity and the actuarial present value of the endowment life insurance. In addition, the researcher will calculate the comparison of the present value of the endowment life insurance to the present value of the life annuity. The last step is that the researcher will multiply the comparison of this present value by the benefits received to calculate the amount of the individual's annual premium. The calculation results show that the comparison of the present value of dual-purpose life insurance to the present value of a living annuity is getting smaller as the policy coverage period increases. As a result, the amount of the individual's annual premium will also be smaller. This shows that the amount of the annual premium is influenced by interest rate factors, the insurer's life chances, and the length of the coverage period.

Does unstable off-farm employment cause stagnant farmland rent-out in rural China?

PurposeThis paper aims to examine the impacts of unstable off-farm employment on the probability and stability of farmland rent-out and explore its mechanisms.Design/methodology/approachThe paper adopts Ordinary Least Squares (OLS), Probit, Tobit, Order probit models with two-way fixed effects to conduct empirical analysis based on the balanced panel data collected in 2016 and 2023 with a national representativeness sample of 1,206 rural households in 100 villages across 5 provinces in China.FindingsThe empirical results showed that unstable off-farm employment had negative effects on the probability of farmland rent-out, but it had no effects on the stability of farmland rent-out. The mechanism analysis showed that unstable off-farm employment affected the probability of farmland rent-out by decreasing the probability of purchasing houses in city and endowment insurance with high pension. Heterogeneity analysis indicated that the negative effect of unstable off-farm employment was much larger for the households with higher share of labor engaging in off-farm employment outside home county, elder members in the households and those located in the villages of mountain areas.Originality/valueThis paper is the first to define the unstable off-farm employment from the perspective of incontiguous off-farm employment for several years, which could capture the normality rather than particular case in a certain year of off-farm employment among rural labors. Using these new measurements of unstable off-farmland, this paper examined the impacts and mechanisms of share of unstable off-farm employment on the probability and stability of farmland rent-out.

Semicontinuous endowment insurance premium valuation using quadratic fractional age assumptions

Semicontinuous endowment insurance premium valuation using quadratic fractional age assumptions

Risk preference and relative poverty: An analysis based on the data of China Family Panel Studies

It is posited that solving the problem of relative poverty (RP) first requires the identification of its cause. We use data from China Family Panel Studies to examine the impact of risk preference on RP of urban and rural families in China and the underlying mechanism. This paper contributes to the existing body of evidence on the determinants of RP. The results show that a high degree of risk preference is conducive to alleviating families' RP. The effect is still significant after dealing with potential endogeneity through instrumental variables. Furthermore, the effect is more obvious among health insurance participation families, endowment insurance participation families, families with low life satisfaction, non-poor families, especially middle-income families, urban families, male-headed families and families in the West in China. Further analysis suggests that risk preference affects RP by promoting entrepreneurship and credit in urban and rural families. Families with a higher risk preference are more likely to engage in entrepreneurship and utilize credit, which in turn helps alleviate their RP. Overall, this paper provides new empirical evidence for understanding the mechanism of risk preference influencing RP.

The impact of China’s endowment insurance system on health behavior

Health behavior has a substantial impact on health conditions. Illness prevention through good health behavior is the most economical and effective health protection strategy. From an institutional standpoint, while endowment insurance systems have been widely recognized as an important means of promoting individual’s health and heightened by the current aging population situation, empirical analyses of whether and how endowment insurance affects health behavior are still limited. This paper uses China Family Panel Studies data from 2010 to 2020 to verify the relationship between the two. The results reveal that endowment insurance systems with different security levels have diametrically opposite effects on the behavior of the insured. Mediating effect analysis shows that the effect of basic endowment insurance is channeled by enhancing individuals’ awareness of health risks, while the effect of supplementary endowment insurance is achieved by guiding residents to devote more time to work. In addition, the impact of the endowment insurance system is heterogenous over age, economic conditions and place of residence. This study uncovers the novel relationship between endowment insurance and health behavior and adds to the theoretical understanding of health behavior from the perspectives of policy feedback and behavioral public management.

The Impact of Supplementary Pension on Household Risky Financial Asset Allocation

With increasingly serious aging problem in China, supplementary pension, as the second pillar of the endowment insurance system, is expected to play an important role to relieve the pension pressure. Nowadays, people in China are exposed to various investment tools, but they still prefer to invest in risk-free financial assets. The allocation of household financial assets is not diversified enough. While supplementary pension is expected to improve financial structure of households. It may enhance the anti-risk ability of households, rational allocation of household assets, the ability of value-adding, and thus reduce the pressure of society to cope with the aging population. This paper selects the 2019 China Household Finance Survey (CHFS) database, using STATA software to investigate the impact of supplementary pension on risky financial asset allocation of Chinese households by applying probit and tobit models. The results show that supplementary pension can significantly increase the willingness of households to purchase risky financial products but has no significant effect on increasing the proportion of risky assets being held.

Study on the Influencing Factors of Deposit Willingness of Individual Tax Deferred Commercial Endowment Insurance in Wuhan City—The Empirical Analysis Based on the Three-Pillar Pension Security System

Study on the Influencing Factors of Deposit Willingness of Individual Tax Deferred Commercial Endowment Insurance in Wuhan City—The Empirical Analysis Based on the Three-Pillar Pension Security System

Retracted: An Evaluation of the Security Ability of the Basic Endowment Insurance System for China’s Urban and Rural Residents

Retracted: An Evaluation of the Security Ability of the Basic Endowment Insurance System for China’s Urban and Rural Residents

Impact of the new rural social pension insurance on the health of the rural older adult population: based on the China health and retirement longitudinal study.

The health issues of China's older adult population in rural areas have been receiving increasing attention with the continuous expansion of the nation's ageing population and the continuous promotion of urban-rural integration. The impact of the new rural social pension insurance (NRSPI) on the health of the rural older adult population, the mechanism of its action and how old-age service can be improved and optimised according to the health needs of the rural older adult population are urgent and realistic challenges. Based on survey data from the China Health and Retirement Longitudinal Study in 2015 and 2018, this study applies a multivariate ordered logistic regression model to explore the impact mechanism and effect of the NRSPI on the older adult population health in rural China while controlling for endogeneity. The results show that participation in the NRSPI can significantly improve the health of the rural older adult population at a 1% level. The results of the heterogeneity test reveal that the NRSPI has a significant impact on the self-reported health of the rural older adult at a 1% level, with a significantly positive impact on the mental and physical health of rural female older adult, whereas the impact on male older adult is not significant. The mediating effect test results show that medical services, food access and entertainment activities have a mediating effect on the new rural social endowment insurance. The results of the moderating effect test indicate that the NRSPI regulates 7.8% of the effect of physical health on mental health and 10.7% of the effect of mental health on physical health. Based on these findings, this study proposes to strengthen the construction of healthy lifestyle guidance and emotional support systems while improving the NRSPI's participation rate and treatment level to meet the diverse health service needs of different older adult groups.

Who Does “Endowment Insurance” Support: The Elderly or Their Grown-up Children?

This research paper seeks to understand whether the current basic endowment insurance policy has properly played the role of supporting the elderly needs through intergenerational support within the family. Theoretically, there are problems of the imbalanced structure of pension security, retirees’ comparatively higher pension and the low-level security of young people’s in-service income, and drawbacks of the existing endowment insurance system, both have a certain causal relationship with “gnawing the old.” Data on China’s family tracking survey in 2016 (CFPS2016), Probit model, IV and PSM robustness testing methods were also used to study the relationship between parents’ pensions and their grownup children’s “gnawing-the-old” behavior. The results show that: (1) Compared with young people from families without pension income, those with pensioned parent(s) will less possibly choose to work; the parents’ financial assistance behavior would restrain the children’s intention to work and increase the possibility of “gnawing the old”; (2) Neither the amount of pension income nor financial assistance given to the children is significantly related to young people’s “gnawing the old”; (3) Young people’s “gnawing the old” behaviors are different according to their parents’ professions and living areas; (4) The gap between parents’ pension income and children’s in-service income also adds to the causes of “gnawing the old.” The policy implications of these findings are discussed particularly the formulation of a scientific mechanism for pension income.

Estimation of Premium Reserves for Last Survivor Endowment Insurance Using the New Jersey Method

There are a few cases of life insurance firms going bankrupt due to mistakes when estimating premium reserves, causing companies unable to pay compensation to policyholders. This is caused when the number of claims submitted by the insured that must be paid exceeds the number of claims previously estimated. Situations like this can be anticipated if the insurance firm has a properly prepared and calculated reserve value. There are various types of life insurance, one of which is endowment life insurance. The purpose of this study is to calculate the amount of reserves adjusted for last survivor endowment life insurance using the New Jersey method. To compute reserves, first, researchers determine the benefits, then the annuity, and finally the annual premium. In the first year, the premium reserve value under the New Jersey method is zero. The New Jersey method begins premium reserves in the second year, for &lt;em&gt;t&lt;/em&gt; years, with where reflecting the duration of the insurer's contract. Based on the data analysis performed, the value of the New Jersey reserves for the two insureds is determined by the length of the insurance contract and the age of the insured at the time of insurance. The value of reserves is seen based on the initial age of a person when starting insurance, the older the initial age of the insurance participant, the greater the amount of reserves obtained by the company. This research is expected can be a reference and help insurance field to estimate premium reserves.

Does Music Encourage Residents to Purchase Commercial Insurance? Evidence From China

Commercial insurance is an important risk management tool whose demand is affected by psychological factors. Music can promote consumption by evoking non-random emotional and behavioral responses in consumers . Using data from the China Comprehensive Social Survey, we examined the impact of music on commercial insurance purchase behavior using a probit model, an instrumental variable, propensity score matching, and other methods. The results indicate that music can significantly increase the probability of residents purchasing commercial medical insurance and endowment insurance by 2.569% and 1.869%, respectively. Regarding the mechanism, music encourages residents to purchase insurance by increasing their general cognition, risk cognition, insurance cognition, and ability to manage risk. Furthermore, an analysis of heterogeneity shows that music plays a greater role in promoting the aforementioned behavior of residents with lower levels of education, lower frequencies of social interaction, internet usage, an agricultural household registration, and of residents with jobs.