Willingness to purchase hypothetical private long-term care insurance plans in a super-ageing society: Evidence from Hong Kong

Jingwei Alex HE, Jiwei QIAN, Wai-Sum CHAN, Kee Lee CHOU

Research output: Contribution to journalArticlespeer-review

1 Citation (Scopus)

Abstract

Despite the soaring demand for long-term care (LTC) services in aging societies, dedicated risk-pooling mechanisms are largely absent. Private insurance has been advocated but the market remains small. This study seeks to unravel this paradox through an empirical study in Hong Kong, a super-aging society. We analyzed middle-aged individuals’ willingness to purchase hypothetical private LTC insurance plans derived from a discrete choice experiment. A survey was conducted in 2020 and sampled 1,105 respondents. We noted a fairly encouraging level of acceptance but also found clear barriers toward potential purchase. The desire for self-sufficiency and preference for formal care powerfully increased individuals’ interest. Cognitive difficulty, habitual adherence to out-of-pocket payment, and unfamiliarity with the LTC insurance market reduced such interest. We explained the results with reference to the changing social dynamics and drew policy implications for LTC reforms in Hong Kong and beyond. Copyright © 2023 The Author(s).
Original languageEnglish
Pages (from-to)780-805
JournalJournal of Aging and Social Policy
Volume35
Issue number6
Early online dateMar 2023
DOIs
Publication statusPublished - 2023

Citation

He, A. J., Qian, J., Chan, W.-S., & Chou, K.-L. (2023). Willingness to purchase hypothetical private long-term care insurance plans in a super-ageing society: Evidence from Hong Kong. Journal of Aging & Social Policy, 35(6), 780-805. https://doi.org/10.1080/08959420.2023.2182084

Keywords

  • Financing
  • Hong Kong
  • Insurance
  • Long-term care

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