Research On The Application Of Life Insurance Funds And The Management Of Market Risk

Underwriting business and fund use business are the two pillars of insurance companies.With the increasingly fierce competition of life insurance companies and the shrinking underwriting profits,the investment of insurance funds is closely related to the long-term stable operation of life insurance companies and closely related to the stable development of the insurance industry.In 2012,the "big capital management era" came into being,the reform of insurance fund management and the broadening of investment channels for insurance funds all bring opportunities and challenges to life insurance companies.The ability to use the funds becomes more important.However,benefits and risks coexist.On the one hand,effective use of funds will bring return on investment and increase company profits.On the other hand,external market turmoil and risks are also transmitted to life insurance companies through life insurance investments,weakening their solvency.How to actively respond to policies,improve the ability to use funds,and do a good job in market risk management are issues that need to be solved urgently.Therefore,this article analyzes the use of life insurance companies' funds and hopes to put forward some operational fund management strategies and market risk control methods,so as to effectively supervise and prevent market risks.This is of great significance to the healthy development of life insurance companies.At present,China's life insurance industry continues to develop,the number of life insurance companies has been close to 80,of which more than 50 are small or medium-sized companies.The selected case analysis object of this paper is a member of them.By studying the annual information disclosure report of Z Life Insurance Company from 2013 to 2016,this article collates and analyzes relevant annual report data,and elaborates potential problems and risks of the company in the investment process from three aspects: investment income,asset and liability management,and asset structure,and use VaR method to estimate the market risk of capital use.The study found that Z Company's asset and liability structure is not matched,the investment return rate is low,and the asset structure is not reasonable.These issues may not only increase market risk,but also increase default risk and liquidity risk,and ultimately affect the company's long-term business.According to the results of the case analysis,the paper proposes corresponding suggestions to help improve the status of the use of funds in life insurance companies and prevent market risks.