Research On Asset-liability Matching Management Of Life Insurance Company

China’s insurance, which is becoming an integral part of China’s financial system, hasmade remarkable achievements since the restoration of the domestic insurance business in1980. However, the rapid growth inevitably brings some problems. The biggest problem is theoversight of asset-liability matching management.For life insurance companies, their operation has the characteristic of high debt, and itscapital is a long-term contract as a whole. Compared with bank capital, its capital mobilityrequirements are lower, and the investment period is correspondingly longer, thus achievingthe long-term matching of asset-liability has always been one of the core issues of riskmanagement of life insurance companies. In view of the importance of asset-liabilitymanagement for life insurance companies’ survival and development, the thesis analyses thestatus of asset-liability matching management in life insurance companies, finding out theexisting problems and reasons, and finally puts forward the suggestions andcounter-measures.Firstly, the thesis puts four listed life insurance companies(Chinese life, Chinese peace,China Taibao, Xinhua Insurance) for an example, analyzing the structure of these four lifeinsurance companies’ asset-liability and finding out the common problems in asset-liabilitymatching management in life insurance companies: One is asset-liability term mismatching.The life insurance company’s assets mainly focus on short-term bank deposits and bondsinvestment, while liabilities mainly focus on long-term contracts reserve; Another is the rateof return of asset-liability mismatching. The life insurance company’s investment rate ofreturn is low, which has big gap with the investment rate of return for the policy-holderexpectation. Secondly, the thesis explores the reasons of asset-liability mismatching from therespect of external supervision, internal operation and capital market. Thirdly, the thesisenumerates the experience and lessons of asset-liability matching management in foreign lifeinsurance companies, from which our country can learn. Finally, the thesis provides somesuggestions for perfecting the asset-liability matching management in our country: In the aspect of supervision, the thesis suggests that China Insurance Regulatory Commission shouldadhere to the solvency adequacy ratio as the core indicator, actively promote the supervision,and improve the supervision measures for market behavior; In the aspect of the company, thethesis suggests that the life insurance companies should use the parallel management ofasset-liability model which, relatively, takes on the liability side, improve the organizationalstructure, increase the investment ability, and strengthen the product innovation capability.