The Research Of Optimal Re-insurance Model Under The Influence Of Investment

Reinsurance is the act of the insurer to assume the insurance responsibility to insure other insurers, is insurance companies' important mechanisms to ensure their financial sta-bility. Traditional reinsurance designed to minimize its probability as optimal reinsurance strategic objectives, focusing on the stability of insurance companies, but reduced its prof-itability. This model is often the reinsurance profit more than lack of stability, the develop-ment of the insurance industry can not meet the need. Therefore, the research of optimal re-insurance model under the influence of investment, for reinsurance companies to develop reasonable reinsurance program, to improve competitiveness in the market, has important practical significance. So, the study under the influence of investment earnings of the rein-surance decision problem, for reinsurance companies to formulate a reasonably reinsurance program which can reflect the strength of their reinsurance business, it is important practical significance to improve competitiveness in the market.The second chapter points out the reinsurance meaning, function and classification. Reinsurance is the primary insurer and reinsurer by the reinsurance contract entered into its own responsibility and risk cover part or all of the transfer to another insurer to bear the risk transfer approach. Reinsurance is a kind of insurance, but it differs with the original insurance:different parties to the contract, the contract a different nature, different subject matter insured, the contract involves different and so the breadth of subject and object. The basic functions of reinsurance with the original policy, as is the risk of spread, and its range is greater dispersion, another also could improve insurance companies reinsurance under-writing capacity, to expand the business and insurance companies around the world favor the formation of large Insurance Fund and other functions. Variety of classification criteria rein-surance, usually used in classification are:by way of reinsurance operations classification of responsibilities by way of reinsurance classification, according to the channel classification of reinsurance. In this article, the focus described by way of reinsurance of responsibilities into several categories under the reinsurance and risk excess of loss reinsurance bit. The third chapter will introduce the best meaning and significance of reinsurance. Opti-mal reinsurance as re-insurance operation in the process of a micro-link, it is used to identify the underlying risks insurance, the size and type. Then according to the subject matter in-sured risk categories,to the help of various criterions, Reinsurance as a risk diversification strategy for the optimal reinsurance, make the risk of being among the various insurance companies for further assessment, improve the efficiency of the entire insurance industry, thus contributing to the operating stability of the entire insurance industry.In general, there are two measures of the original criteria for insurers to maximize the interests of two, one is the least risk and the other is the most effective. In this paper, the de-tailed description of the different optimal reinsurance is under optimization criteria, different criteria will be established after the optimal reinsurance. In the re-insurance plan, separate the company to operate the business risks and responsibilities assumed by a comprehensive and integrated analysis, selecting the appropriate re-insurance, reinsurance plan has reached to reasonable. Earlier in this chapter for a single insurance reinsurance optimization problem has a certain description, and that a multi-line reinsurance on the optimal model for a variety of contemporary risk management is very useful, through multi-line reinsurance to get the optimal makes the company the smallest probability adjustment coefficient.In the last two chapters we consider the impact of investment, only to consider the insurance companies invest the funds in a non-risk assets, and a kind of risky assets, the give the optimal reinsurance model under the affect of investment, two types of optimal reinsurance model is expounded, named ratio optimal reinsurance model and risk excess of loss reinsurance model. Introducing the idea of constructing the two models and principles, and its made in detail. Then the final chapter in the article, specific examples will be applied to test optimal reinsurance model, which is given in the previous chapter,and the results be analyzed and explained. Data prove that the investment and reinsurance strategy can reduce the probability, the methodology of research for practical application is instructive.