| In the financial sector,the insurance industry is the highest degree of marketization and open field.Assets and liabilities are into all aspects of social and economic life increasing regulatory difficulty.With the development of economy and financial reform deepening in China,related regulatory policies for insurance funds are gradually let go of its application.However,in the face of interest rates downward of economic environment,the regulator will put financial risks prevention in more important positions.Increasingly strict financial regulation has become the consensus of the industry.China Insurance Regulatory Commission(hereinafter referred to as the "CIRC")once reiterated that insurance companies should properly position themselves and develop towards right directions.CIRC will officially launch the new regulatory system "China Risk Oriented Solvency System"(hereinafter referred to as "C-ROSS").C-ROSS,as a new regulatory rule,promotes CIRC to a new location of risk regulation.Under the background of the new economic development environment and policy,the insurance company how to carry out equity investment better,broaden the insurance fund investment channels,perfecting the stock investment of insurance funds risk early warning and risk management mechanism is particularly important.Research and explore equity investment of insurance funds and prevention of insurance company's risk is practical and significant.This paper adopts case study and literature research method,and selects Q company as the representative of small and medium-sized insurance companies in recent years.According to the present situation description,problem analysis,suggestion proposed to conduct the research.Q company frequently uses insurance funds to carry out the equity investment of listed companies,which is the main reason for the rapid development of Q company over last two years.However,in the process of equity investment,Q company is in a severe situation.This paper illustrates the theory associated with the use of insurance funds and clear out the definition,source,principle,using form and risk management theory of insurance funds.Then based on the theoretical framework of research,this paper analyzes Q company from the structure of main business,income,financial analysis and concerted action person.Then this paper analyzes the equity investment from equity structure and benefits,and analyzes the risk management from both asset and liability of Q company to reveal the risk.Based on the study of operation and investment of Q company,the paper explores the factors which affect equity investment risk of Q company and the reason why risk exists,mainly from asset liability mismatch,liquidity risk,financial and operation risk of invested companies,risk of regulation policies,and the risk of choosing different financial instruments measuring equity investment.Only to find out the source of risk can we put forward effective suggestions for risk prevention,and to promote it to the equity investment of insurance companies.This paper combines related theory with practice,which is of great significance for the research of investment risk and how to prevent it.Insurance companies should strengthen the risk management of investment,considering how to keep the ratio of released liquid assets,control the proportion of non-current assets and maintain reasonable assets structure.Insurance companies should strengthen the management of assets and liabilities matching,according to the characteristics of company's business and the liabilities.Insurance companies determines the structure of investment assets according to the time and currency to keep balance of assets and liabilities.In addition,insurance companies should regularly assess the risk of investment assets,liquidity level and market value to inspect the realization of assets.Finally,insurance companies ought to pay close attention to the environment of financial market and the effects on liquidity of insurance funds investment. |
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