1. “Protect Institution” or “Protect Elderly”? ——An Discussion about the Choice of Risk Transfer Technology for Endowment Service Institutions Insurance School, Central University of Finance and Economics, Beijing, China HUANG Wanding ZHOU Yulian 2015-5-21

2. Contents Add your text in here short The necessity and urgency 1 Traditional ways of risk shifting 2 The exploration of new ways 3 Evaluation and Prospects 4 2015-5-2 2

3. The necessity and urgency 1 3 “Protect Institution” or “Protect Elderly”

4. 2015-5-2 The necessity and urgency 4 Endowment services institutions have reaped rapidly development

5. 1. The necessity and urgency 1.1 Population forecast

6.  The particularity of institution’s business objects 2015-5-2 1. The necessity and urgency 1.2 Faced with the pressure of going concern 6  The nature of the institution limits its capacity on the risk resistance

7. The elders accidental injury risk 1 ） high frequency, big damage 2 ） hard to confirm casualty liability 3 ） the institution often bear heavy moral burden, faced with the pressure of the public 2015-5-2 1. The necessity and urgency 1.2 The particularity of their business object 7

8.  Providers of the basic endowment insurance sponsored by the Government or the Society 2015-5-2 8 1. The necessity and urgency 1.2 The nature of the institution a. public welfare b. non-profitability

9. 2015-5-2 Traditional ways of risk shifting 2 9 “Protect Institution” or “Protect Elderly”

10. Introduction 2015-5-210 2. Traditional ways of risk shifting 2.1 risk financing 2015-5-210 hold-harmless agreements hedging Retain Transfer insurance non-insurance

11. b.The Unified model agreements (in China) 2. Traditional ways of risk shifting 2.2 How does endowment services to transfer risk 2015-5-211 a.The Formatted hold-harmless contracts (in China)

12.  “Contract Law"  Article 39, gives detail instructions: format terms should follow the principle of fairness  Article 52 and 53, list the various situations that made format terms invalided  Especially emphasized that involving personal injury goes against the principle of constitution 2. Traditional ways of risk shifting 2.2 a. The formatted hold-harmless contracts 12

13.  2004, "the Tianjin pension agency agreement” which is the first one, holding by the provincial units.  Beijing and other cities are ready to follow.  Feasibility a)the mandatory and scientific standards are hard to uniform. b)model agreement cannot really transfer risks. 2. Traditional ways of risk shifting 2.2 b. The unified model agreements 2015-5-213

14. 2015-5-2 The exploration of new ways 3 14 “Protect Institution” or “Protect Elderly”

15.  A "government promotion, business operation, multi-party participation in” the endowment services risk sharing mechanism is gradually formed. 3. The exploration of new ways 3.1 Insurance mechanism 2015-5-215  The representatives specific areas exploration situation of insurance approach can be found in the table below:

16. 3.2 Insurance ways Table 3

17. 3. The exploration of new ways 3.2 Insurance ways Table 4

18. 3. The exploration of new ways 3.2 Insurance ways Table 5

19. a)Operation mechanism implements "the government to promote" based on multivariate linkage b)Insurance rules in more than a "united, beds, low premium" principle c)Insurance liability mainly stay in the old man accident harm accident, at the same time are diversified. 3. The exploration of new ways 3.3 Characteristics 2015-5-219

20. 2015-5-2 Evaluation and prospects 4 20 “Protect Institution” or “Protect Elderly”

21. 4. Evaluation and prospects 4.1 From three aspects 2015-5-221 a. the basis of insurance technology - "liability insurance" or "accident insurance"? b. the key of insurance technology - "civil liability" or " insurance responsibility "? c. the design of insurance technology –"insured” and " claims”

22. 4. The exploration of new ways 4.2 a. the basis of "liability insurance" or "accident insurance"? 22  Two kinds of ambiguity: a)Liability accident narrow the coverage b)Accident liability extend the coverage  Based on the following two actual needs: a)one kind of the organization management risk, in order to cover a wider range of operating risk b)can avoid the trouble that agencies been blamed twice

23. 4. The exploration of new ways 4.2 b. the key - "civil liability" or "insurance responsibility"? 2015-5-223  Objects of insured: the loss caused by the "institutions” unintentional tort or fault a)The limitation of the Insurance liability b)the broadness of the institutions  How to deal with this situation a)shrink institutional responsibility b)expand insurance liability

24. 4. The exploration of new ways 4.2 c. the design –"insured” and " claims” 2015-5-224 From the Insured aspect: Design the differential rate Reform the rewards and punishments rate From the underwriting aspect: Agency liability insurance the elder’s social medical insurance other supplementary commercial insurance

25.  Lin Xun. "insurance law" on translation anthology [M]. Taiwan: zhong hua press, 1991.  George E Rejda [M]. The risk management and insurance theory [M], ShenShuGuang main translation. Beijing: renmin university of China publishing Club, 2002.  Xu Feiqiong. "liability insurance" [M]. Beijing: China financial publishing house, 2007. Reference 2015-5-225

26. How to contect us 26 HUANG Wanding* School of Management Shanghai University of Engineering Science No.333, Longteng Road, SongJiang District, Shanghai 201620 Phone: (+86)15000580965 Email: shbzhwd2010@126.com shbzhwd2010@126.com ZHOU Yulian* School of Insurance Central University of Finance and Economics No.39, South College Road, Haidian District, Beijing,100081 Phone: (+86)18811455463 Email: zhouyl607@126.comzhouyl607@126.com

27. THANKS! 2015-5-227