EconPapers    
Economics at your fingertips  
 

A Canadian Parlor Room-Type Approach to the Long-Term Care Insurance Puzzle

M. Martin Boyer (), Philippe De Donder (), Claude Fluet (), Marie-Louise Leroux () and Pierre-Carl Michaud ()

CIRANO Working Papers from CIRANO

Abstract: We examine the different hypotheses which have been put forward to explain the low demand for long-term care insurance using the results from a survey of 2000 Canadians that was conducted in the autumn of 2016. Defining the natural market of long-term care insurance buyers as the one catering to individuals aged between 50 and 70, we find that a remarkable proportion of this natural market has never been approached to purchase such protection. We estimate that approximately 60% of this natural market is currently under-served. After eliminating risk perception and demand side explanations for the low market penetration of long-term care insurance, we conclude that supply-side factors and the crowding-out by government programs are the most likely culprits in explaining the low proportion of Canadians that purchase LTC insurance from private providers.

Keywords: Long-term Care Puzzle; Risk Perceptions; Supply and Demand of Insurance; Government Programs (search for similar items in EconPapers)
JEL-codes: G02 G12 C14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-hea and nep-ias
Date: 2018-04-25
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://cirano.qc.ca/files/publications/2018s-13.pdf

Related works:
Working Paper: A Canadian Parlor Room-Type Approach to the Long-Term Care Insurance Puzzle (2018) Downloads
Working Paper: A Canadian Parlor Room-Type Approach to the Long-Term Care Insurance Puzzle (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2018s-13

Access Statistics for this paper

More papers in CIRANO Working Papers from CIRANO Contact information at EDIRC.
Bibliographic data for series maintained by Webmaster ().

 
Page updated 2019-10-10
Handle: RePEc:cir:cirwor:2018s-13