Comparison Of Chinese And Foreign Life Insurance Asset Allocation

In China, the incompleteness of assets and liability management is an important factor that restricts the accomplishment of the insurance industry's strategic goals, especially of the life insurance companies. This is due to the imperfectness of the Chinese finance market, as well as other problems involved with qualified personnel, technology and the sense of management. Given the development of insurance assets management companies of China, the current core problem is to set up a reasonable agent system, which is the basis of assets and liability management. Meanwhile, managers of the insurance companies should realize that assets and liability business should coordinate and are both responsible for the profit and value goals. A complete evaluation system of assets is required to guarantee that the assets management goal is in accordance with the company's strategy.So, it is significant to investigate the asset allocation management of local life insurance companies. Research about the foreign experience and technology can also be helpful.First of all, this essay demonstrates the meanings and characteristics of asset and liability in life insurance companies and the difference from other financial institutions. Secondly, from the asset allocation structure and its trend, this essay analyzes the current situation of Chinese insurance investments. Thirdly, based on the examples, main problems of the assets allocation are revealed from both aspects of the industry and the company. Next, investment data of foreign insurance industries, mainly American, European and Japanese, is gathered and analyzed in order to give out experiences on investment structure, profit as well as the assets management pattern. Then, foreign supervisory systems and methods are discussed. Finally, based on the theoretical and empirical analysis, as well as Chinese basic conditions, the essay proposes suggestions on improving insurance asset allocation of China.