Research On Models Of Investment Of Small And Medium-Sized Property And Casualty Insurance Company

Based on review of the use of insurance fund in China, I introducedseveral models of capital management for insurance companies, andpresented its main characteristics and development trend. I selectedcapital management of small and medium-sized property and casualtyinsurance companies as research object, focusing on the study ofentrusted investment process.I divided entrusted investment of small and medium sized insurancecompanies into three aspects: determination of asset allocation strategy;selection of investment managers, portfolio construction and performanceevaluation; risk control and portfolio management. Of these three aspectswere studied one by one in this paper. More specifically, on the basis ofits insurance business structure, determination of asset allocation strategycombines asset liabilitymanagement, solvency analysis, and cash flowmatching to satisfy the requirements of asset allocation. Selection ofinvestment managers and portfolio construction is based on managers’evaluation system and is analyzed by portfolio manager model. As for risk control and portfolio management, it is based on managers’adjustment and change to achieve dynamic management.On the basis of Analytic Hierarchy Process (AHP), I selectedinvestment manager’s choice as targets, and then created a hierarchy bycombining investment managers’ features into four level I indicators andseveral level II indicators. Afterwards, three most important features, thatis, asset and liabilities, solvency and cash flow were used to calculateweighting of all level II indicators by using expert scoring method, andthen advanced to four level I indicators in the same way, finally, thedecision was got by this method. This paper will provide theoreticalsupport and operation guidance for capital management of small andmedium-sized property and casualty insurance companies.