Empirical Study On Insurance Fund Investment In Security Market

The balance development between insurance business and insurance fund operation is the important character of modern insurance industry. With the increasingly fierce competiton in insurance industry,underwriting profits are being squzeed,even below zero. So the use of insurance funds has become the important pillar for the survival and the development of insurance industry. It is an maintain way that with high yield in investment to make up the loss of underwriting business for insuance company to keep the profitability and the solvency.The securities market is a significant flow of insuance funds,the investment accounts for more than 50 percent. so this article forcuses on the insurance funds in bonds,stocks and security investment fund markets and analyzes the optimal combination of the three market.This article researched on use of insurance funds,pointed out the limitation,urgency and importance of doing these researches,explained the composition of the insuance funds and the investment principles,analyzed the status and difficulties of the operation of funds,as well as the gaps in operation of funds between the domestic and western insurance company.After Introduced the Baumll-Tobin's Model,the Markowitz's Funds Operation Model and Mutil-exponential Model and analyzed the character of each model and pointed the applicability.And developed the Markowitz's Funds Operational Model to suit for the character an insurance company,and gave a method to solve the model with software.The fourth aimed at China Life Insurance Company, compared the data that China Life invested to the securities market and the research's result,bringed forward an available mode for the fund operation. The conclusion of this article table a proposal to the insurance company like China Life Insurance company. In the fifth part of this essay, it was pointed that to optimize the yield of the combination investment,we could creat a good investment environment,improve the insurance laws and regulations and strengthen the supervision and risk control. These policies and proposals are useful for improve the quality of insurance funds investment.Insurance company has to pay attention to the operation of the insurance funds and the management of risk,in order to promote the circulation of the funds and the competitive of the company,protect the benefit of the clients. Insurance company should absorb the successful experience in developed country;combine with the actual situation of China,to achieve a higher win.