Research On The Interest Rate Risk Management Of Life Insurance Company

Interest rate is the core of economy and finance. In financial market, the fluctuation of interest rate can determine the movement of currency market and capital market. Along with the liberalization of interest rate of our country, the risk of interest rate becomes one of the major risks of financial market gradually. The rapid increase of the risk of interest rate has increased the possibility that the commercial bank loses or goes bankrupt.Reform along with the financial system continuously deep to turn, the insurance market further opens, the abroad insurance company with higher management to enter the local market, the competition of the local life insurance market will be gradually vigorous. Leading into the thought and theories of Interest Rate Spread Risk are an inevitable measure for the life insurance company to improve the anti-risk ability and enhance the business enterprise core competencies. The thought of Interest Rate Spread Risk management can change principles of management and operation strategy for the life insurance company. Therefore, to decrease the Interest Rate Spread Risk with dissolves, and to increase the level of anti-Interest Rate Spread Risk management do particularly important to the life insurance company.This article proceeds from the expression of interest rate risk of the life insurance company. Firstly, it analyze the interest rate risk related to life insurance company debt, assets, assets and influence that debt match, and in the market-based process of present interest rate; in addition, the article explains the necessity and pressure the life insurance company facing to enhance the management of interest rate.Secondly, this text uses plenty of words to explain why company's interest rate risk of the life insurance produces and relevant influence factors emphatically the production of the interest rate risk and correlated with subjective and objective factors have found from the forming reason for analyzing in depth to the interest rate risk, the reasons of interest rate risk in life insurance company not only results in outer economic development, supervisory system, trade competition, ete. But also in the management theory, sense of risk, managerial skill, means factor related with company too.After that, this paper analyzed the change of Chinese life insurance companies' reserve caused by the change of the interest rate, so the situation and character of interest rate risk of Chinese life insurance were studied. We can draw a conclusion reserve rate continuance enhance, but elevated pace continuance reduce and elevated range even more accord with fact along with fail of interest rate. 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.