Analysis On China's Insurance Investment Channels

Both underwriting operation and investment operation have the same importance in the whole business operation of a contemporary insurance company. In this period, insurers compete with each other by lowering the premium rates, which leads to shrinking of underwriting profit, even underwriting losses. Insurance investment has become an indispensable step in insurance management and provided the foundation of insurance industry to survive and develop, relating to both solvency ability and business stability. Although China's insurance investment has achieved a brilliant progress during the past two years, there are still a series of problems ,which including the different effect of directly investing in stock market and indirect method. Considering directly entering stock market what should be prepared ? Arrangements of insurance fund entering stock market directly and other channels of investment are also needed to study.The author uses four methods-the cooperation of empirical and regular analysis, historical and logical analysis, quantitative and qualitative analysis, domestic and other country contrast analysis. The author analyzes the environments of the insurance investment. Key factors are the laws and regulations and the present situation of domestic capital market. After analysis, the author states the future tendency and his anticipation of insurance investment channels.This paper implied that developed capital market is always the main area for insurance investment and the tendency of multi-channeled investment is coming. Therefore indirect way is temporary , instead direct method should be reasonable. Chinese insurance supervision institute should provide more investment channels for insurance fund with the view of the Security and Profitability, such as items of public foundation .This paper creatively states the anticipation of insurance investment channels and tries to theoretically explain it by using Invest Theory and the Principal-Agent Theory.