Working Paper: NBER ID: w20549
Authors: Hanming Fang
Abstract: We describe the risks faced by the ageing population and survey the corresponding insurance markets for these risks. We focus on income risk, health expenditure risk, long-term care expenditure risk and mortality risk. We also discuss the interactions between social insurance and private insurance markets.
Keywords: insurance; elderly; health expenditure; income risk; long-term care
JEL Codes: D14; G22; H51; H55; I13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| ageing population (J11) | increased income risks (E25) |
| increased income risks (E25) | impact on financial security (F65) |
| increased life expectancy (J17) | increased dependency ratio (J19) |
| increased dependency ratio (J19) | greater reliance on social insurance programs (H55) |
| inadequacy of public insurance (I13) | necessity for additional private insurance (G52) |
| adverse selection and market failures (D82) | influence on private insurance (G52) |
| multidimensional risks faced by the elderly (J14) | insurance purchase decisions (G52) |
| social insurance (H55) | shaping of private market dynamics (D40) |