Insurance Asset Securitization Research

In the financial sector now securitization has a very profound effect. China hasjoined the WTO, though China’s insurance industry whether from the capital strength orthe solvency point with foreign competitors are there is a huge gap, but must use theinternational financial market standards ourselves, so that China’s national insuranceindustry can have a competitive advantage. For instance, in the improvement ofsolvency, Chinese insurance company for solvency is insufficient, hard to keep up withthe development of our country’s whole insurance market speed. Before using thetraditional mode (increase cent gives business and to increase capital gold) theimprovement of the solvency have certain restriction, through the more capital marketto enlarge its solvency has necessity and urgency. Therefore, Chinese insurancecompany to own capital to ensure minimum in, on the basis of asset securitization ofinsurance products this capital market new products, dynamically add policy holdersurplus, or to reduce the accept insurance of dynamic excess loss, reduce the cost of theimprovement of the solvency, and to improve the competitiveness of insurance companyaccept insurance.At present, the full development of the international financial market, generalconcentration in the capital market, commercial Banks and investment Banks businessetc, insurance as an important part of the financial markets, but seems to be in has beengoing his own way, thanks to the development of the financial market is not much. Theinsurance industry is the securitization of speaking, although China whether from thecapital markets or legal environment to see, all with the developed countries of the westhad the very big disparity, so that the conditions are not mature. But, theory need toadvance research. Even more important, from the analysis of this paper will see thatChina’s insurance industry has the strong demand securitization.Insurance industry as the financial industry one of the three pillars of itsdevelopment of financial structure and the development of the market economy is ofvital importance. Also, the capital market of insurance industry also had a profoundimpact; The last century began, foreign insurance first by the attention of the earnings ofaccept insurance business, and then to rely mainly on the insurance fund investmentincome make up for profit is very low, and even a loss insured the stage. The insuranceindustry has been taken extensive business model, and at the same time, because of theeconomic cycle and insurance period of reason, in the fierce competition in the insurance market, insurance contract and expansion of the supply of insurance earningsappear to rise and fall to repeat between, malignant competition between insurancecompany, because in insurance period when insurance companies face down to solvencyis insufficient risk. How to effectively avoid solvency shortage is theory and practiceactivities are problem to be solved, at the same time, how to solve the traditionalinsurance and reinsurance of supply and demand is the contradiction between theproblem to be solved. Securitization, securities issue forced insurance activities changedthe traditional business information confidential standard, the insurance fund investmentchannels gradually wide, insurance company through the securitization financing,insurance company play the function of the original rights, make insurance moretransparent, so it seems that the implementation of insurance asset securitization is verysignificant. Based on the definition of the insurance asset securitization after themeaning, to insurance asset securitization support--the theory of asset securitizationtheoretical analysis, the insurance asset securitization for below the analysis made atheoretical foil. Then, the importance of investment from insurance, risk and theimplementation of insurance asset securitization of the causes, necessity, feasibility, thepresent situation, the restriction factor, path and its countermeasures for specificanalyses. From the analysis of this paper will see that China’s insurance industry has thestrong demand securitization, hope to be able to carry out insurance for our countryafter asset securitization provide some help.