The Study On The Risk Prevention Of Our County's Insurance Investment

With the macroeconomic rapid growth, our country's insurance industry has madesignificant progress, and there are swift and violent growth in both the number of insurancecompanies and the scale of its assets. The total assets of our country's insurance companieshave been reached 1.6 trillion yuan up to March, 2006, and rapidly expanding by 40%. Inaddition, with the establishment of our country's market economy system and WTO joining,increasing foreign insurance companies have been rushing the gate of our country. This willundoubtedly introduce new opportunities and challenges to the stable management ofinsurance business.In the new historical situation, our country's insurance industry has already presentedthat it can not do what it likes for it only depends on the insurance premium—this only sourceof income. As a result, the insurance investment business has been highly attended by ourcountry insurance business. Moreover, with the further maturing of our country's capitalmarket and the further relaxed restrictions on the insurance investment, the insuranceinvestment has now become another major power to support the insurance industry tocontinue developing, to increase the income and to enhance the company stability. Itsdevelopment has become imperative. In recent years, it has been obtained correspondinglyrapid development in its investment scale and investment types. However, the insuranceinvestment just like a double-edged sword that has brought multitudinous profits, at the sametime, initiated many risks in our country. Therefore, it is vital significance for the stable andhealth development of our country's insurance industry to study on the risk prevention of theinsurance investment.Beginning with insurance investment risks and investment types in our country, thethesis has pointed out its existing main shortcomings through analyzing the present situationin the risk prevention of our country's insurance investment. Then through comparativeanalyzing with the developed countries, much valuable experience about the risk preventionof the insurance investment has been acquired. Finally, unified the concrete details of ourcountry's insurance companies, many measures of the risk prevention have been proposed,such as vigorous developing the capital market and improving the investment environment;Rational developing of financial derivative investment instruments and using of the portfolioto reasonably hedge the risks;taking a variety of channels to effectually prevent the interestrate and liquidity risks;strengthening the management of foreign exchange risk to establish aappropriate risk prevention system;strengthening macro-and micro-insurance investment riskmanagement ,and so on.