Assets And Liabilities Analysis Of China Life Insurance Company After The Newly Promulgated Management Measures For The Use Of Insurance Funds

With the rapid development of China’s economy and the improvement of national insurance awareness,China’s insurance industry,especially life insurance,has ushered in unprecedented development opportunities.From 2012 to 2021,the total assets of China’s insurance industry continued to grow from 6.0 trillion yuan to 24.9 trillion yuan,with a compound annual growth rate of 15.3 percent.However,challenges often coexist with opportunities.An inevitable result of vigorous development is fierce competition.All insurance companies make every effort to participate in the competition actively or passively,insurance benefit getting better,insurance liabilities being novel,but the premium should not getting higher.Second,as the population ages,life insurance companies will face great pressure on future payouts.Both problems make it increasingly difficult for insurers’ assets to match their liabilities.However,the liabilities of life insurance companies usually have a long maturity,so insurance companies can manage assets through appropriate investment,increase the cash inflow of assets,and match the cash outflow of liabilities,so as to achieve good management of asset and liability.By expanding the cash flow matching model and immune strategy,this paper studies the asset liability management(ALM)strategy of China’s life insurance companies under the current second-generation compensation system,which can meet the cash flow demand of liabilities in each period and immune to market interest rate risk.There are three innovations in this paper.First,compared with the traditional cash flow matching model and immune model,the paper focuses more on the security of asset return,as long as the cash flow and crown of assets can meet the demand of liabilities.The second is to consider the return on assets and the randomness of the policyholder’s survival,and confirm the value of the parameters in the decision through the method of random simulation experiment.Third,according to China’s insurance regulations,THE ALM strategy should meet the corresponding requirements of the second-generation compensation system.