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

The Geneva Papers of Risk and Insurance, Vol. 35, No. 4, pp. 626-643 (2010)

Posted: 20 Jun 2013

Date Written: October 1, 2010

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.

Keywords: long-term care insurance, social insurance, risk perception, introduction, Germany

Suggested Citation

Zuchandke, Andy and Reddemann, Sebastian and Krummaker, Simone and von der Schulenburg, J. Matthias Graf, Impact of the Introduction of the Social Long-Term Care Insurance in Germany on Financial Security Assessment in Case of Long-Term Care Need (October 1, 2010). The Geneva Papers of Risk and Insurance, Vol. 35, No. 4, pp. 626-643 (2010), Available at SSRN: https://ssrn.com/abstract=2281231

Andy Zuchandke

Independent ( email )

Sebastian Reddemann

Independent ( email )

Simone Krummaker (Contact Author)

City, University of London ( email )

Cass Business School
106 Bunhill Row
London, EC1Y8TZ
United Kingdom

HOME PAGE: http://https://www.cass.city.ac.uk/faculties-and-research/experts/simone-krummaker

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