Research On Financial Management Of Investment-linked Non-life Insurance Product

With the China Insurance Regulatory Commission issued a series of successive regulations related to investment-linked non-life insurance products, investment-linked non-life insurance products have once again become the focus of attention. Investment-linked non-life insurance products have a huge role in promoting the development of property insurance industry, but because of their inherent shortcomings, as well as the inadequate relevant supporting system at this stage, such as the laggar product design technology, the lack of supportive policies and regulations.etc, investment-linked non-life insurance products in the past few years haven't been much developed. While the market share of investment-linked non-life insurance products at present is still small in China, but its significance can not be ignored because it's the beginning of our innovation and development of non-life insurance, and the non-life insurance industry has opened up a powerful and promising way.Compared with the rapid development and relatively detailed theoretical study of the investment-linked life insurance products, investment-linked non-life insurance products have lagged a lot in the market development, the improvement of the external legal environment, or related theory research, in which circumstances, it's urgent and necessary for the insurance company to research on operation, management of investment-linked non-life insurance products. The successful development of investment-liked insurance products is inseparable from the products'systematic analysis, which is prominently manifested in the design of insurance products and the interest rate, the use of funds, asset-liability matching, the calculation of the profit and loss.etc. To ensure to raise a corresponding amount of insurance funds at a reasonable cost and the rational use of funds to meet the needs of policy holders, the financial management of investment-linked non-life insurance products becomes necessary in this sense.This paper is to analyze investment-linked non-life insurance products, based on the property insurance company's financial management perspective. Through comparative analysis of relatively mature life insurance and foreign investment-linked non-life insurance products, we obtain the characteristics of investment-linked non-life insurance products'development in China; Based on the analysis of these characteristics, combined with insurance, accounting and financial knowledge, this paper conducts a study on the finance, investment and asset-liability matching, profit and loss recognition of the financial management of investment-linked non-life insurance products, trying to establish a relatively complete financial management framework for investment-linked non-life insurance products.This paper consists of four chapters.The first chapter, "An Overview of Financial Management for Investment-linked Non-life Insurance Products". Firstly it introduced the definition and classification of investment-linked non-life insurance products. Then, it's the "methods and purposes of financial management". The chapter concludes by a comparative analysis, which consists of two aspects:one is between the investment-linked non-life and life insurance products, and the other is between domestic and foreign investment-linked non-life insurance products, mainly with Japan and the South Korea. With the comparing analysis, this paper hopes to find the direction of the development of investment-linked non-life insurance products in China, paving the way for the next chapter.The second chapter, "The Financing of Financial Management:Product Development." Product development, including the design of insurance products and setting the period and interests, can be regarded as the "financing" process of non-life insurance company's financial management in fact.Based on the comparative analysis with relatively mature product markets in the first chapter, this chapter is to explore suitable ways for China's investment-linked non-fife insurance products from multiple perspectives. It mainly Includes (a) insurance design, (b) setting the products'period, (C) setting the scheduled interest rats:Through a analysis of China's investment-linked non-life insurance products'interest rate history, as well as the main trends at this stage, this paper suggests that, the current scheduled rates should be primarily designed to be biased in favor of the interest-linked rate and non-scheduled rate, to control the investment risk within a certain range, or transfer the risks to the investors.The third chapter is to study the use of funds for investment-linked non-life insurance products, and the control of financial risks, which is also the focus of this paper. This chapter describes an overview that the investment-linked non-life insurance products are confronted with financial risks first, and then analyzes the main investment channels in China's non-life insurance industry. This paper selects several representative investment-linked non-life insurance products, analyzing the assets allocation corresponding to their product nature, and then with China's non-life insurance industry's investment channels, putting forward some suggestions, including (a) widen the investment channels, (b) Control portfolio investment risk, (c) Interest rate risk control.This leads to the main method of controlling interest rate risk——asset-liability matching. Due to the special nature of investment-linked non-life insurance products (short-term insurance coverage and the relatively long-term investment requirements), asset-liability matching mainly involves analysis of the corresponding composition of assets and liabilities, the quantity and duration of liabilities, then we figure out the specific use of funds in operation.The fourth chapter is the end of this paper, and also the final process of the financial management——profit and loss recognition and performance assessment. The profit and loss recognition of investment-linked non-life insurance products need to comply with the "International Financial Reporting Standard No.4-Insurance Contracts" as well as the accounting standards of investment-linked insurance products in China. It leads the separate accounting model for investment-linked non-life insurance products, and then the discussion of separate accounts premium processing, insurance premium income, fiduciary asset, liability reserves and so on. In the last part, the paper analyzes performance assessment of investment-linked non-life insurance products, which builts a performance assessment system including main financial indicators, combined with the historical comparison and benchmarking comparison, as well as risk indicators.