Life Insurance Securitization And Its Application In Solving The Problem Of Interest Loss In China Life Insurance Industry

Securitization is one of the most important innovations in financial field, and it is being applied more and more widely. Its application in life insurance is comparatively late, but it brings great revolution to this industry. Reviewing some important concepts, the characteristics of life insurance operation and its regulation, this paper deduces the essentiality and feasibility of life insurance securitization. Based on some actual cases, this paper explores the category and operation structure of life insurance securitization, analyzes its function, pricing principle and risks. To make the analysis deeper and clearer, this paper postulates an actuarial case and probes the mathematical basis of life insurance securitization. Life insurance securitization will revise the traditional insurance theory. This paper will discuss the theoretical revolution it brings and the convergence of entire finance industry. In the last chapter, this paper will discuss its application in solving the problem of interest loss in China life insurance industry, and outlook its prospect in the future.