Impact of the Introduction of the Social Long-Term Care Insurance in Germany on Financial Security Assessment in Case of Long-Term Care Need

authored by

Andy Zuchandke, Sebastian Reddemann, Simone Krummaker, J. Matthias Graf Von Der Schulenburg

Abstract

The discussion concerning long-term care insurance in Germany barely exceeds the financial state of the social system. The view of the insured involved is largely ignored. This paper analyses the effect of the introduction of compulsory long-term care insurance in 1995 in Germany on the perception of financial security when needing long-term care. Using different regression techniques on a subset of the German Socio-Economic Panel (SOEP) data, we show that the introduction led to a general positive shift of the assessment. Furthermore, experience with long-term care had no significant effect before the introduction but a positive effect afterwards. Also, the perception of financial security is found to be increasing with income at both times with similar magnitudes.

Organisation(s)

Institute of Insurance Business Administration

Type

Article

Journal

Geneva Papers on Risk and Insurance: Issues and Practice

Volume

35

Pages

626-643

No. of pages

18

ISSN

1018-5895

Publication date

01.10.2010

Publication status

Published

Peer reviewed

Yes

ASJC Scopus subject areas

Accounting, General Business,Management and Accounting, Finance, Economics and Econometrics

Electronic version(s)

https://doi.org/10.1057/gpp.2010.26 (Access: Open)