Disability Income Insurance and Pricing in Mainland China

Disability income insurance (DI) and its pricing in mainland China is discussed with a focus on the current situation, market prospects, and the pricing process. Our study concludes that (1) there is a bright future for commercial DI, but current consumers are mainly urban residents with above-average incomes; (2) by combining health service data and experiences of the insured, one can calculate the premium rate by sex, region, and occupation; and (3) the price of DI should be higher in rural areas than in cities; the commercial DI premium rate is overpriced for people under 45, and underpriced for people over 45.