| Since the 1990's, China Has experienced several times of reduction of interest rate. It brings the serious interest margin loss to the life insurance company. It is still the heavy burden of some life insurance company. Under this background, for the investment or funds utilization of life insurance companies, the control of interest rate risk becomes the focus of life insurance industry. Meanwhile as the tools of the managing interest rate risk initially—Asset Liability Management becomes the effective managing method of funds investment of life insurance companies. Because of the variation and complexity of the outer business environment, especially the continuous reaction of finance markets and economic factors make the life insurance industry existing vast potential risks, that is the risk for mismatching of property and liability. The impropriety of liability or property management finally causes the mismatching of property and liability. It is the essential cause of business failure of life insurance companies, and also the basic cause of life insurance interest margin loss. And insurance investment is the important method of reconciling interest margin loss. The investment environment which China insurance industry face make the life insurance company should carry out the effective investment management. Therefore asset liability management can fundamentally change investment ideas and strategy of life insurance companies. It makes life insurance company can avoid every kind of risks especially interest rate risk, and achieve profits under guarantee of the reimbursement capability.The study of author is based on the asset liability management of the investment interest rate risks management issue for China life insurance industry. Preliminarily discuss the theory and technology development of the asset liability management, applications of life insurance investment, risk control of life insurance investment, and so on. |
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