The Utilization Of The Insurance Fund And The Relevant Risk Management In China

The healthy development of the insurance industry is beneficial to both the stability of the society and the prevention of the systematic financial risk. Therefore it is of momentous current significance to promote the healthy and stable development of the insurance industry. The utilization of the insurance fund is one of the two major business operations in insurance and great attention should be devoted to it in order to sustain the growth of the insurance industry. However, the utilization of the insurance fund started late and in general is now still at a less advanced stage. The main phenomena are: a less advanced environment for the fund utilization; the comparatively narrow investment channels for the insurance fund investment; the underdeveloped form of organizing and utilizing insurance funds; the less advanced management method of the insurance fund utilization; still some room for improvement on the development of the supervision of the insurance fund utilization.In order to help insurance companies realize a sustainable growth and increase the return on investment and the solvency margin, it is necessary to learn from the experiences and lessons in the insurance fund utilization in developed countries and treat them as guidance for the insurance fund utilization in China. Keeping in mind the current issues in the insurance fund utilization in China, the dissertation has made relevant analysis on the insurance fund utilization in foreign countries. In the dissertation, those foreign countries are divided into bank-oriented countries and market-oriented countries according to the financial system adopted and detailed analysis has been made regarding the channels and methods of the insurance fund utilization, the effect of the insurance fund utilization and the relevant management and risk prevention. Recommendations on measures of improvement have been made based on the analysis of the current situation of the insurance fund utilization in China and the historical and current development of the relevant supervision.