A Probe Of Insurance Investment Into Infrastructure

Since the resume of insurance business in our country, we have experienced a rapid developing stage, and is growing up with everyday passing-by. But something is disturbing us, and what? The declining returns from investments. Newly published Insurance law has an eye on this matter. Trying to develop new investment channel seems to be the only way out, and we debate a lot of this topic. Infrastructure, a rapid developing area, such comes into our view sights. The basic viewpoint in this article is that infrastructure could be a new investment channel of insurance cash flows, and the following parts are trying to improve this.Section 1, the brief introduction of the topic backgrounds, main literature datum and writing frame, is the basement of following sections. Section 2 gives a general description of our country's insurance capital investments. From comparison with developed countries, we can find the main problems that confront us at the moment. Developing new investment channels is the solution. Section 3, based on infrastructure analyzing, aims at proving the feasibility of putting insurance capital into infrastructure. Section 4 adopts the tradition mean / variance standard model to research capital investment tactics. And this comes into the forceful support of the "insurance capital investment in infrastructure" viewpoint. Section 5 adopts the dynamic financial analysis (DFA) to research the issue of insurance capital investment. Swiss Re's FIRM?(Falcon Integrated Risk Management) is both a powerful tool and excellent frame of DFA, all the research of investment tactics is established on this frame. By means of stochastic differential equation and the use of a cascade structure, inflation results, equity returns, credit spreads, as well as assets class are simulated; and the premium, loss and expense cash flows can also be projected. To reconcile the model results to forecasted profit and loss statements, assumptions regarding taxes, premium collection patterns, and various other items are also required. Using FIRM?system to support the idea of insurance capital investment in infrastructure is an ideal way to take.The main innovations in this essay cover two areas :1. On the description of our country's insurance capital investments, developing infrastructure as a new investment channels is a solution of the investment trouble.2. Trying to use DFA under FIRM?system in investment strategies analysis.