Study On The Effect Of The Variation Of Interest Rate On Life Insurance And The Countermeasure

The variation of interest rate is one of the means employed by the state to adjust the economy running. As the interest rate is certain at the particular point when the policy is sold, the variation of interest rate will bring about the deviation of the actual price from the preset price of the life insurance policy, thus greatly affecting the life insurance policy demand, the normal operation of the life insurance company. Paying respect to the long duration of the life insurance policy and the uncertainty of the interest rate, analyses the variation of the interest rate's influence on the demand and supply of the life insurance in three perspective -the demand, the supply of the life insurance and the equilibrium between them; beginning with analyzing the sources of profit of the life insurance business, the article studies the influence on the normal operation of the life insurance business exerted by the variation of interest rate; and the bank interest rate decides the projected interest of the life insurance ,the demand of the life insurance will come from the price effect instead of the substitute effect . And the derivation of the price will cause the life insurance company tremendous loss, and the client bears the right to stop the policy in the midway, the life insurance Company will suffer huge loss in the case of an interest rate cut; in the case of an interest rate rise, the life insurance company will not get the profit. The frequent change of the interest rate will make it hard for the life insurance company to keep the debt in balance, thus lowering its capacity to pay the debt. When the interest rate fluctuates, the life insurance company has to face the choice of inflow of the cash, and bring down the company's overall performance. In the final part, in line with the actual trend of the interest rate going to market in our country, the article proposes the strategicallycountermeasure of developing new types of life insurance, manipulating life insurance capital and strengthening the internal control mechanism to prepare for the interest rate risk. The life insurance business should develop new type of life insurance in the welfare market and the investment market, so that the interest rate of the asset and debt may balance each other. As the same time, life insurance company should take an active part in entering the capital market in the view of optimizing the combination of life insurance capitals, increasing the profitability of life insurance investment, managing the risk of the on hand policies. The life insurance company should, on the other hand, actively introduce the advanced management technology, establish the life insurance actuarial science system, strengthen the control over the paying capability and lower the negative influence of the interest rate risk to the lowest degree.The research, which involves economy, monetary, banking, investment, marketing, financial, accounting employs methods of theoretical analyses and statistical reasoning, which together add to the reliability of the article.Ruan Hongsheng (MBA) Directed by Zhang Xiaoming...