The Research On Interest Rate Risk Management In Chinese Life Insurance Industry

Reform along with the financial system continuously deep to turn, the insurance market future opens, the Chinese life insurance industry will experience more fierce competition. Leading into the thought and theories of Interest Rate Risk is an inevitable measure for the life insurance company to improve the anti-risk ability and enhance the business enterprise core competencies. From the point of asset-liability management and combined with the present situation of the Chinese life insurance industry, this paper uses these theories to study the interest risk on the Chinese life insurance company.At first, this paper makes a detailed summary about the development and foreign and domestic research condition of the asset-liability management, and introduces some asset-liability management techniques which are more suited to Chinese present situation. Then it analyze the effect of interest risk management to life insurance company debt, assets, assets and influence that debt match, and in the market-based process of present interest rate, in addition, this article explains the necessity and process of present interest rate. After that, this paper analyzed the change of Chinese life insurance companies' reserve caused by the change of interest rate, so the situation and character of interest rate risk of Chinese life insurance companies are studied. And then the cash flow test was used to study the influence of the change of interest rate on the profit of Chinese life insurance companies. And then choose the immunization theory, which is more suited to Chinese present situation, to make deeply research, including research with option and default risk. It also applies the extended models to life insurance asset-liability management. On the basis of it, this paper also discusses the choice of asset-liability management pattern in the Chinese life insurance interest rate risk management and puts forward the proposal that China should adopt the pattern in asset-liability management which combines asset leading pattern with liability leading pattern. At last it designs the implemental technological process of the pattern and puts forward the strategies of these segments of the process.The article makes point of theories investigative, and takes use of actuality study at the same time, provide a flood of primitive data and analysis of the influence to the life insurance company because of the interest rate spread. The theory should make service for the practice. It is duty of life insurance companies and supervisor that how to make use of the asset-liability management theories in practice, to control the interest rate risk effectively and enhance the solvency and the core competition of the life insurance. It is also the purpose of this paper.