Ghavibazoo, OmidOmidGhavibazoo2023-04-132023-04-132023-02-20https://www.alexandria.unisg.ch/handle/20.500.14171/107714This dissertation consists of three essays that offer a holistic view of the challenges existing in the market for private long-term care insurance and a deeper analysis of the behavioral and actuarial aspects of that product. It explores the existing research gaps and anomalies found in this market and provides appropriate answers using both economic and actuarial frameworks. In particular, this dissertation focuses more on demand for private long-term care insurance. The first essay entitled “Research on long-term care insurance: Status quo and directions for future research” provides a comprehensive literature review of long-term care insurance using a mathematical tool to identify the most significant paths in the citation network. Three major research areas (financing, demand, and insurability) are identified and then evaluated systematically based on the standard frameworks, and then future directions are discussed. The existing immense difficulties of long-term care insurance are analyzed from the demand and supply side of that product to explain the marginal contributions of insurance mechanisms to long-term care financing overall. In the second essay, “Willingness to take financial risks and insurance holdings: A European survey” a behavioral challenge that exists on the demand side of the insurance market, in particular, the market for life insurance and long-term care insurance, is examined. Using a cross-national survey dataset from 14 countries, the relationship between individual’s willingness to take financial risks and ownership of life and long-term care insurance is analyzed when the specific determinants of the demand for each insurance product are controlled. These findings support the conclusion that there exists a positive link between the willingness to take financial risks and the ownership of both long-term care insurance and life insurance where that link is not supported by the classical expected utility framework. The third essay, entitled “The interplay between longevity and morbidity on optimal choice of long-term care insurance” analyzes how longevity improvements and their interactions with alternative morbidity scenarios influence the retiree’s optimal choice of purchasing long-term care insurance. The essay concludes that only in the morbidity expansion scenario does the optimal level of purchasing long-term care insurance decrease since the actuarially fair premium increases. In addition, testing for existing survival ambiguities of retirees by using constructed morbidity scenarios, it is found that when survival ambiguities exist, both morbidity compression and expansion lead to a lower level of long-term care insurance purchases.enPflegeversicherungAnforderungRisikoeinstellungMorbiditätLanglebigkeitEDIS-5279long-term care insurancedemandrisk attitudemorbiditylongevitydoctoral thesis