Research On The Model Of Chinese Insurance Companies Participating In PPP Projects

In 2016,the “Administrative Measures for Indirect Investment in Infrastructure Projects by Insurance Funds”was promulgated,which stipulate that insurance funds can adopt creditor's rights,equity,property rights and other feasible methods to invest in infrastructure projects,and Eliminated industry restrictions on insurance companies' participation in infrastructure project investments.In this case,the insurance company's PPP project investment has entered a period of emerging development.But overall,The participation of insurance companies in the PPP project is still in its infancy.It is worthwhile for insurance companies to choose the appropriate model to participate in the PPP project.In view of this,this paper first introduces the general theory of the application of insurance funds— Asset-liability matching theory and Portfolio theory.then analyzes the investment status of insurance companies in China.At present,It is found that there are some problems in the process of insurance capital utilization in China,such as irrational asset allocation structure and low investment return.PPP investment model and insurance funds match in terms of duration,risk preference,and size,With the support of the policy,investing in PPP projects has become a reasonable choice for insurance companies to optimize asset allocation and make the use of insurance funds more diversified.As far as China's realistic environment is concerned,insurance companies mainly participate in PPP projects through equity,creditor's rights and fund investment.Therefore,this paper has studied a classic case of the three modes.After a brief introduction to the case,we conduct an in-depth study on the characteristics of financing,project entity financial analysis,and risk.Through horizontal comparison,it is found that: First,there are differences in the operation of financing methods in the project,but no matter which model provides sufficient convincing guarantee to ensure the security of funds;Secondly,through the fluctuations of financial indicators,it can be seen that the PPP investment brings a big change to the insurance company's financial report,affecting the solvency of the insurance company,the ability to operate assets,etc.The choice of investment model and the actual situation of the company is different,the impact will be different.Third,no matter which investment model is adopted,it will face risks,and the types of risks are similar,but the causes and extents are different.Finally,this paper conducts anin-depth analysis from the two dimensions of income and risk,and finds that the external risks faced by equity are relatively large,and the internal financial risks faced by the creditor model are greater,the yield of funds and equity investment models is higher than the debt model.In general,The debt investment plan and the fund investment model are more universal,and the equity investment plan has high requirements and risks for the insurance company's operational capability,and small and medium-sized insurance companies should adopt it cautiously.Through the study of actual cases,this paper attempts to explore the most suitable mode for insurance companies to choose to participate in PPP projects,and provide reference for insurance companies.Based on the research and comparative analysis of three typical cases,combined with the analysis of China's current situation,This paper gives suggestions for Chinese insurance companies to participate in PPP projects from four aspects: selecting the model that accords with the company's risk preference,following the policy guidance,improving the PPP investment management ability,and innovating the investment method.