Ping An Insurance Company Funds The Use Of Risk Management Strategies

With China becoming more and more open, the Chinese insurance companies are facing a severe international competition. Due to the large market potential, foreign insurance companies are eager to enter China. For the sake of competition pressure, to widen the investment business and to increase the investment return remain priority in our Pingan Insurance Company, which is also the trend in the international insurance business.China started insurance business pretty late, but is moving quite fast. However, due to the limitations including State macro-controlling policies, the capital investment in China is far from perfection. Insurance companies are also short of experiences, and thus are very immature; particularly there should be a big improvement in investment venture administration and investment strategies. This article studies and analyzes the problems existing in our Pingan Insurance Company, and further more proposes the efficient investment strategies.Firstly, the paper introduces the related concepts, including the concepts, characteristics and the definitions of insurance, organization, business scope, and the principles of insurance fee usage as well as its composition. The second part discusses the basic theory of venture administration, including the composing factors of venture management, identifying tools as well as the controlling strategies. Some theory of venture control, including the theory of most recent investment combinations, asset balance, and risk-controlling is also explained in this chapter.Then it describes how Pingan Insurance Company uses the investment, and indicates the potential problems. By comparing with foreign insurance companies in investment strategies, this article studies China insurance industry, and the investment usage strategies in Pingan Insurance Company, and also indicates the potential problems in Pingan Insurance Company in both macro and micro aspects. Afterwards this paper studies the actual risks that Pingan Insurance Company is facing and tells how to lower and spread such risks. There are two sections in this chapter, in which actual venture risk including general and special risks are mentioned, and some feasible measures have been proposed.At lastly we propose the alternatives for Pingan Insurance Company to choose the best investment management. This includes the internal system re-structure, investment combination strategies within Pingan Insurance Company, including the fixed investment benefit return, and relatively conservative investment management strategies. Through the internal risk-spreading strategies as well as the interest rate, risks can be managed under control. This chapter also tells the conclusion and proposal of this article.