Study On Chinese Insurance Funds Investment Channels

With the financial innovation tools being introduced continuously since 1970s, the insurance industry competition is getting more and more intense, and the underwriting profit has declined even losses. The insurance regulators and insurance companies have to adapt to the new environment in order to make up the losses of insurance business by depending on the high profit of investment business. But the insurance investment has always developed in a low level in China owing to the narrow investment channels and imperfect capital market. How to choose the investment channels seems so important to keep the solvency of insurance companies because of the unbalanced development between of the two "wheel". In order to maintain sustainable development of the insurance industry, to impove investment return and competiveness, we need to draw lessons from the operation of the foreign insurance investment's channels.Based on reviewing the development of Chinese insurance investment channels and using the methods of the longitudinal and the cross comparing sides and the theoretical analysis and empirical analysis, this article analyzes the present situation and compares with other countries. There are some problems on the investment channels, such as that too narrow channels, unreasonable structure, too strict regulatory and so on. Then this article set a insurance fund portfolio model using the portfolio theory and go ahead positive analysis. The effective portfolios are determined. Then we can get three conclusions, that is insuance companies should be careful on stock share investment, the proportion on bank deposit and national debt should be declined, and capatial market is very important for perfecting the insurance investement channels in China.In the last part of the thesis, some suggestions are put forward for developing the channels of insurance investment in China from the insurance companies and government macro-control two aspects according to our own characteristics and forerign lessons.