TITLE:
Research on the Business Model of Insurance Companies Developing the Old-Age Care Communities—Taking China Life as an Example
AUTHORS:
Lulu Shi, Yifeng Wang
KEYWORDS:
Insurance Company, Old-Age Care Community, Business Model, Nine-Element Theory of Osterwalder’s Business Model
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.8 No.9,
September
11,
2018
ABSTRACT: In
recent years, Chinese population is tilted towards older people, and it is very
limited for the state to invest in the elderly care facilities. Encouraged by
the national policy, many insurance companies have embarked on constructing and
operating the retirement community. However, the profit model of these
insurance companies is not clear yet, and the return on investment is low, in
which China Life is quite typical. Therefore, taking China Life as the research
object and Osterwalder’s nine-element theory as a tool, the paper analyzes the
existing business model of China Life developing the old-age care communities,
and uses the business model canvas to reconstruct a new business model. Finally,
the paper presents three management suggestions—that is—joint ventures with
professional management institutions, innovative insurance products linked to
pension communities, and the securitization of old-age assets. That will
provide references for other insurance companies developing old-age care communities.