Research On Model Of Retirement Community Operated By China's Life Insurance Companies

With the increasing aging population in China, China has entered an aging society, in which the contradiction between the growing pension demand and the insufficient endowment supply has become a major problem of the society. With the rapid development of China's insurance industry, its total assets increased from 460 billions in 2001 to 12.36 trillion in 2015,but the insurance company is facing growing pressure of asset allocation and appreciation. The new "insurance law", implemented in October 1,2009, broadens the channels of insurance funds investment and provides legal guarantee for the direct investment of insurance funds in real estate.As a compound real estate of "pension+real estate", retirement community is very suitable for life insurance funds investment for its demand rigidity, lower correlation to the capital market, income stability and other characteristics.In this paper, firstly, the domestic and foreign relevant research results are listed. The writer also explains China's current pension service system and the definition and types of retirement community. Then he mainly introduces life insurance companies, one of the three major investors in retirement community, and its investment status. Secondly, the writer chooses four life insurance companies as examples, among them focusing on the Taikang Life Insurance Company vs Beijing Yanyuan community and Union Life Insurance Company vs Wuhan Younian community.Through analysis of these two cases from the perspective of project function plate, models of investment, financing, operation and profit, and project orientation, the writer sums up the common model of retirement community operation of life insurance companies. Subsequently, he compares the models of companies in United States and Japan and concludes some lessons that could be learned by domestic companies. At last, this paper puts forward some suggestions on the investment for life insurance companies.By the comparison between retirement community operations of domestic and foreign life insurance companies, it's clear that China's pension services industry is still in its initial stage. But the life insurance company has its own unique advantages in operating retirement community than real estate enterprises and the industry capital. Since the retirement community feels strong correlation to life insurance products, consumers can settle down in the community by buying insurance, on the other hand, life insurance companies can also expand their industry chain through community care products. But at this stage, the domestic life insurance company operation of the retirement community model is not clear, through this research, hope to the domestic life insurance company operation of the retirement community has certain enlightenment function.