The Research Of Financial Derivatives Investments Of Insurance Funds In China

With the rapid development of the insurance industry and the premium income of insurance, the amount of the available balance of insurance premium is becoming larger. As the Chinese Insurance Regulatory Commission (CIRC) issued of insurance funds investment policies in October 2012, CIRC allowed investing in financial derivatives with the premium income of insurance in China. Yet there is still no specific trading rules in China, we still have a long way to go in the financial derivatives investment of insurance funds.The paper combines the latest application of insurance funds in our country with the latest data, and it is with VaR and Eviews to calculate investment risk management of insurance funds in China. It concludes that participate in the financial derivatives is feasible with Chinese insurance funds.As we know, the nature of derivatives is high risk. Investing in derivatives is not only a challenge to minimum the risk management of insurance company, but also is a big challenge in China to develop and improve the regulation of financial derivatives market. However, insurance company for financial derivatives investment proportion will stabilize finally.Paper also discusses the strengthening of the insurance company internal management and improving the relevant management is so important of investment rules. Insurance company should regulate the certain responsibilities of department. The insurance company needs to train and exercise the related employers. Finally, on the financial derivatives market in China, our country should gradually establish a multi-levels financial derivatives market structure, and it should develop the function of the financial derivatives to hedge risks in financial markets.