Studies On The Risk Control Of China's Insurance Investment

In September 2008, sub-loan crisis in American was in the further development, and the financial crisis finally broke out in Wall Street. For a time, several major U.S. investment bank declared bankruptcy or restructuring, the largest U.S. savings bank - Washington Mutual bank was failure, and the American International Group (AIG), which having the world's largest market value, was also taken over by the government with 84 billion U.S. dollars. Then, a great destructive financial crisis began to sweep the globe. As one of the three pillars of the financial system, the insurance industry was difficult to escape the fate of the financial crisis's impact. Many international well-known insurance companies appeared great losses, and China's insurance industry also faced huge challenges. An important reason for this situation is that the risk of the use of insurance funds is not well-controlled. The use of insurance funds is the lifeline of the insurance industry, there is no insurance without investment. Under the new financial crisis situation, we have to make a renewed survey to the problems in the usage of insurance funds and the risk control in this process.This paper was firstly analyzed the course of the use of insurance funds and its current situation in China, and expounded the correlative authorities of the use of insurance funds. Then, it introduced the risk of insurance funds operation and the risk analysis model, attempted to construct a rational invest proportion to analyses the insurance invest in China via the modern invest combination management model (mean-variance model). It uses the successful experiences and research findings of developed occident for reference, bring forward several relevant recommendations to the existed problems in the insurance funds usage and risk controlling at last.