The Impact Of Interaction Between Exchange Rate And Interest Rate On The Stability Of Life Insurance

Interest rate is the inward price, and Exchange rate is the outward price of one Currency. The Variation of Interest rate will give decisive influence on life insurance industry; the exchange will give indirect influence on life insurance by via of interaction with interest rate. Analysis of exchange rate and interest rate separately will be of less significance under Global economy Integration. It's imperative to study the comprehensive impulse of the interaction between exchange rate and interest rate.This dissertation is characterized by the combination approach of normal method and empirical method. After clarifying the relation among variables by normal method, this dissertation identifies and measures the influence on Underwriting and Investment of life insurance from the interaction between exchange rate and interest rate. In the process, this dissertation constructs and estimates models of life insurance by using econometrical methods.There are five chapters in this dissertation. Chapter 1 focuses on the introduction to the interaction between exchange rate and interest rate, and the channels of this interaction, as well. There is an empirical study of JPY in the end of chapter 1. chapter 2 anal sizes the impulse on Japan's life insurance from irregular interaction between exchange rate and interest rate to reveal the outside causes of Japan's life insurance long-time depression, sharp down-turning rate of investment return and serial bankruptcy of insurers. By panel data analysis across nations, chapter 2 uncovers the universal existence of effect from interaction of exchange rate and interest rate. Chapter 3 constructs and estimates ADL,VAR and ARIMA model of life insurance premium income imperatively based on annual and monthly data, and reveal the weakness of China's life insurance under economy openness by panel data analysis among China, USA, Japan, ROK and Singapore. Chapter 4 takes further analysis on life insurance from more micro perspective based on panel data analysis across insurers and lines, and anal sizes the stability of life insurance premium income by surrender rate and policy loan rate. Chapter 5 concentrates on the investment of life insurance from perspectives of investment amount, asset structure and rate of investment.Innovations in this dissertation are as follows :(1) Breaking through the convention of independent analysis of interest rate and exchange rate, this dissertation anal sizes the combination influence of interest rate and exchange rate; (2) give a comprehensive analysis of impulse on life insurance from interaction between exchange and interest rate: a panel data analysis among China, USA, Japan, ROK and Singapore; (3)attach much importance to response function to impulse of VAR model, identifies, measures direction scale and duration of variable's change; (4)emphasizes on macro and micro analysis, from international viewpoint to national standpoint, from whole industry to individual insurers and lines; (5) pay attention to WTO entry, exchange regime reform and so on, anal sizes the institution innovation; (6) From investment amount, asset structure and rate of investment, probes the way interaction influences the life insurance investment.