Research On Investment Of Life Insurance Enterprises In China Under Financial Crisis

Facing the rapid deterioration of the investment environment caused by the global financial crisis, life insurance enterprises in China are in dilemma. On one hand, they have to adopt steady investment strategies. On the other hand, they strongly demand for investment profit. Although life insurance enterprises in China seldom end up with bankruptcy due to investing subordinated bonds, the impact cannot be ignored. With stock markets in China fluctuating rapidly under the financial crisis, investment income of life insurance enterprises in China drops drastically. Such situation might result in two possible results:first, in order to meet the strong demand for investment profit, life insurance enterprises may hope to buy cheap in the volatility adjustment of capital markets, regardless of the current investment risks; second, life insurance enterprises have to adjust their development strategies and operational structures in dealing with current circumstances. However, this may lead to huge investment losses and dramatic decline of the premium.In such situation, it is rather important to research on the investment of life insurance enterprises in China under financial crisis and to find out reasonable solutions to address the problems. It is not only contributed to the own operation of life insurance enterprises, but also to the healthy development of life insurance industry in China.This paper contains five chapters.ChapterⅠintroduces the background of the study, as well as the financial crisis. Then, it introduces the research status quo of investment of life insurance enterprises in China under financial crisis. Finally, it describes the research framework, methods, innovations and shortcomings.Chapter II mainly researches the financial crisis and its impact on life insurance enterprises in China. First, it introduces the transmission mechanism of financial crises, as well as the trend. Then, by collecting and aggregating large amounts of data, it shows both the operation performance and the investment performance of life insurance enterprises in China under financial crisis. Finically, it concludes the impact of the financial crisis on life insurance enterprises according to the data.Chapter III mainly discusses the investment channels under financial crisis. First, it researches the investment risks of traditional investment channels under financial crisis, in which life insurance enterprises in China allocate their assets. Then, it discusses the feasibility to increase investment in infrastructure construction under financial crisis and explores the sound approach. Finally, it discusses the feasibility to invest in real estate under financial crisis and explores the reasonable approach.ChapterⅣmainly researches the assets allocation problems of life insurance enterprises in China under financial crisis. First, it proposes the investment principles of life insurance enterprises in China under financial crisis, as well as the basic model of investment risk, and discusses the necessity to strengthen the asset-liability management under financial crisis. Then, it discusses the asset allocation strategies of life insurance enterprises in China under financial crisis from the strategic level. Finally, it discusses the specific implementation steps of life insurance enterprises in China under financial crisis from the tactical level.Chapter V mainly researches the measures to strengthen investment of life insurance enterprises in China under financial crisis from the macro policy level. First, China should improve and standardize the financial market to avoid more systemic risk that life insurance enterprises might take. Second, China should permit further investment channels for life insurance enterprises in accordance with the long-term characteristic of life insurance funds. Third, China should perfect the legal norms associated with the capital structure, proportion and amount restrictions of life insurance funds. Fourth, China should improve the investment regulatory policies of life insurance funds.