Modeling Non-Self-Sufficiency Benefits in ALM-Based Self-Management

Many factors as the demographic aging, the low birth rate, the one or two person families and employment difficulties lead to new and different social characteristics that must kept under control and well managed. In addition to the creation of Supplementary Health Funds, essential to preserve the general health care system, it will be necessary to define specific benefits to cover the increased expenses resulting from the lack of self-sufficiency. In this context, the approach to the problem of permanent non-self-sufficiency (Long Term Care - LTC) is changing. It is necessary to rethink, even without specific regulations legislation as in Italy, the definition of a 2nd pillar for non-self-sufficiency.The goal of this work is to build a model allowing to define a collective solution with a very low average cost for the non-self-sufficient, since the risk is shared over the entire community, creating a sustainable solidarity system among different risk bearers. A self-managed LTC benefit coverage is assumed without any insurance risk coverage. The economic and financial management (including the reserves) is based on a ALM approach that guarantees the adequacy and the sustainability keeping the proper risk profile, also in terms of liquidity.