Research On Chinese Insurance Funds Investment In Open Invironment

When China enters WTO, the foreign insurance organizations alsoenters the Chinese insurance market rapidly. The condition that Chinese insurance organizations and foreign ones compete together has already come into being. As well as the increase of the insurance organizations in quantity, the competition in domestic insurance market has become harder .making the profits within this industry decline quickly. ""Hence, it could be very difficult to develop domestic insurance markets depending on the profits of underwriting.The experience of the international insurance industry indicates that, when the competition of the insurance market is fairly sufficient , the investment of the insurance funds will become an important developing motivation. However, in China, the conflicts between the poor efficiency of the operation of insurance funds and the fast development of insurance markets have been shown in evidence. The conflicts exist in three aspects. First,the channel for insurance funds utilization is fairly narrow. Secondary,the structure of insurance funds is less efficient. Thirdly, there is a declining trend for the profits. The low operating efficiency of the Chinese insurance funds has already become the bottleneck of the enhancement of the industry. Therefore, it will make sense to study how to promote the level of the insurance funds utilization in China, and then push forward the Chinese insurance industry process of internationalization.This thesis commences from the theoretical analysis of insurance funds utilization, and then introduces the history of the domestic funds. Revealing the risk and comparing the difference in terms of utilization between domestic insurance funds and foreign competitors, this thesis clearly delineates the present condition and shortages of domestic funds. Then, this paper makes an analysis to the influence of our insuranceindustry and insurance funds usage with China's entry into WTO.Following the analysis mentioned above, this paper further makes suggestions on improving the level of insurance funds utilization. Owing to the importance of broadening the channel to utilize the insurance funds, this paper discusses the features of some import channels. Meanwhile, this paper raises some strategies to strengthen the ability of managing the funds , in terms of corresponding the insurance funds with the capital markets strengthening the supervision and innovation, and operating syncreticly ,etc. I wish these strategies can strengthen the abilities of operating insurance funds in China, and then can help to establish a firm, healthy and advancing industry to face global competitions under an opening background.