The Risk Control Of Insurance Entrusted Investment

The insurance investment is the investment activities the insurance enterprises undertaking to ensure the fund will be used in a way that the greatest economic benefits of the business are achieved. It is the main source of the income of insurance company, and also is one of the key factors to determine whether the company will succeed or fail. Morgan. Stanley once prophesied: investment is the key business of the insurance, there is no insurance without investment. With the development of modern insurance, the content of the insurance service is no longer confined to the traditional insurance field, but linked to consultation and fund of assets management. The insurance investment gradually becomes the leading power of the capital market. It is also the major institutional investors in the capital market.Entrusted investment management has become one of the major forms of investment management of insurance company. Compared to direct investment management by insurance company itself, entrusted investment management is more professional and easy to having a large scale. So, it's important to insurance investment, even to insurance industry as a whole, to direct and regulate entrusted investment management.The paper consists of five chapters. Foreword part explain the study purpose and meaning of insurance investment, the research method and structure of thesis etc...Firstly it is a theory about insurance investment modes. The performance of investing activities goes abreast with the organization of the particular activities. Based on different organizational form, the major investing mode is the specialization holding investment mode, centralized to invest mode; make investment by investment department mode, and the outside trust investment mode. The first mode helps diversifying investment risks, but has higher requirements for the control of the holding on its subsidiaries;second mode can fully utilize the double risk-control system of the holding company, support stable business growth, but have a very high expectation in the people's abilities and skills. The advantage of the third mode is that the insurance company can impose stronger control on the insurance investment, but it is relatively riskier and the scale is limited, generally no economic scale achieved. The fourth mode implies a way of transferring the funds to a professional management company, but very risky, and the cost is relatively high. Generally, at present,the first mode is accepted internationally.Secondly, the thesis introduces the importance and urgency of regulating the entrusted investment, comparing the general situation of insurance industry development and the important position of investment on the management of insurance industry in china with that in foreign countries. Now the problem of insurance investment channel has being resolved in our country .Then describes the rapid growth of entrusted investment of internal insurance industry, analyzes the risk of investment and that of entrusted investment, concluding that the risk control includes a process control, not only investment risk control. In the process of entrusted investment, this thesis emphasizes the process control. At the last, deeply analyses the management and risk control in the process of entrusted investment of insurance company with three sections, such as the choice of entrusted investment form, entrusting agreement and operation, points out the problems on the process of entrusted investment, and gives a suggestion to control risk.