The Role of the Banking Industry in Long-term Care and Possible Service Innovations

2016/12/1 上午 12:00:00

This study mainly looks at the experiences of Germany, the UK, and Japan in developing long-term care (LTC) as a response to aging. It then explores Taiwan’s and China’s LTC policies and service systems, practices for financial institutions, resource gaps to be filled, and related policies, laws and regulations. It further analyzes possible roles and innovations for Taiwanese banks in the industry chain, and the effectiveness of schemes like housing endowments and retirement trusts, and offers other proposals worthy of consideration, including financial asset securitization, retirement family trusts, guardianship trusts, and bank insurance policies.

As aging becomes predictable and irreversible, it drives rapid growth in healthcare demand and spending. Based on the experience of OECD countries, that demand will continue growing. LTC holds an importance place in national healthcare demand. The Ministry of Health and Welfare (MOHW) estimates that the average person requires 7.3 years of long-term care over his/her life, but Taiwan’s system is still incomplete. The government must work with civil society to support the industry chain to overcome its financial challenges in the nation’s LTC system. The purpose of this study is to understand the role banks can play in service innovation.