Research On The Life Insurance Investment Of China

The problem that perplex life insurance enterprises most is theinvestment of the capitals from life insurance. On one hand life insurancecompanies lack effective means to match the exposure risk of debt becauseof the inadequate capital market, on the other hand, as there are somepolicy restriction, the investment channel for the capitals from lifeinsurance are limited. These cause a great potential risk in the running oflife insurance companies. Through researching on the necessity of lifeinsurance investment, and making comparative analysis between the risksexist in the investment of life insurance and the experience in foreigncountries, this article will put forward the countermeasure to the investmentchannel of life insurance and relevant risk control.In this article, the problem will be analyzed through following parts:Part one: First introduce the characteristic and function of lifeinsurance, and the principles and instruments of life insurance investment.And then expound the process of the development courses and currentsituations of life insurance investment in China.Part two: According to the actual conditions of China, discuss the importance of investment to the running of a life insurance company. Thengo on the necessity of the life insurance investment in China, meanwhileanalyzing the main present risk in the investment. Necessity that lifeinsurance make the investment go on, from several aspects, first in terms ofmacrocopic, concern about the siginificances of life insurance investmentto the development of the capital market in China; second, the necessity oflife insurance investment stems from the characteristic of life insuranceitself; third, the investment of life insurance is the only way for resolvingointerest surplus and improving benefits. The problems of life insuranceinvestment includes, the systematic risks causing by the restriction ofinvestment environment, the potential crisis of solvency causing byointerest surplus, the risk of re-investment and impact on the productsstrategies brought in mismatch of asset-liabilities, etc.Part three: Firstly, compare the investment channels of life insurancein developed countries, secondly, basing on the preceding analysis of lifeinsurance investment in various countries, recommending the supervisonon life insurance investment and the risk control of life insuranceinvestment in the world, probe into the place that is worth drawing lessonsfrom the comparision and analysis of the praticising investment of lifeinsurance in various countries.Part four: Put forward the suggestion to the risk control and the choiceof investment channel of life insurance in China, especially make an analysis on several kinds of investment channels that the dispute exists.Then discuss risk control from two phases, one is from life insurancecompanies, another is from the supervisors, and then offer some proposal tothe problem need concerned while supervising the risk of life insuranceinvestment.