The Study Of Insurance Fund's Exertion

Definition of modern insurance includes not only economic indemnity function but also financial facility and social risk management function, which means insurance operation and insurance capital application are the coequally important dominant operations in modern insurance enterprises and the latter is becoming the basis of healthy insurance development.With the rapid development of insurance business in recent years, the premium increases tremendously in the ratio of 23.62% every year, much faster than the GDP growth in the corresponding period. Meanwhile, the insurance capital application in China is still far behind the insurance investment in the developed country. Although the investment capital in local insurance now rises to 1170 billions in the growth ratio of 12.2%, it has dropped ceaselessly since 2001. There has been an increasingly serious contradiction between the rapid premium growth and capital application income decline, which would probably affect the solvency and stability of the insurance company. China insurance industry is now facing the 21st century competition, especially after its entry of WTO, the competition with foreign insurance companies will definitely become more and more severe, which must bring forth a new reformation to Chinese insurance investment for catching up with the world pace.Basing on analyzing the current situation of Chinese and overseas insurance investment, the essay brings forward the following insurance investment problems in China: 1>Deficient capital market development and immature investment tool; 2>Inefficient supervision on insurance investment; 3>Irrational capital application portfolio; 4>Insurance company's internal problem. This essay also propose some suggestions on the innovation in insurance capital application: firstly, to establish the professional insurance capital management institution; secondly, to strengthen the supervision of insurance solvency; thirdly,...