The Enlightenment Of Subprime Mortgage Crisis To Insurance Fund Investing Portfolio

With the continuous development of Chinese insurance industry, its position in the international insurance industry has significantly increased,the size of available insurance fund is also increasing. So the safety of insurance fund use also has higher requirement. Learning the advanced experiences from foreign insurance companies, insurance investing securities is an important channel, which has very important meaning for improving the revenue of insurance fund, and enhancing the solvency of insurance fund. As institutional investor and risk undertaker, the insurance companies have suffered heavy losses in Subprime Mortgage Crisis, exposing the problems on the insurance investing portfolio. This paper focuses on the case of foreign insurance companies investment failures in the Subprime Mortgage Crisis, and sums up the problems in the investment process, in order to give the enlightenments to investing securities of China's insurance.Firstly, analyzing underwriting income and investment income of foreign insurance companies, qualitative analyzing and quantitative analyzing the relationship of insurance investment rate of return and Stock market value of China insurance companies proved that insurance investment plays positive role in the sound operation of insurance company and it is the most important channel for the insurance investment. Despite the subprime crisis gave a heavy blow to the insurance industry, it could not deny the positive aspects of the insurance investing portfolio.Secondly, by analyzing the impact on the sub-prime crisis of insurance investment,this paper describes the ways how the financial crisis transmitted to the insurance industry. Combining in the case of foreign insurance companies failed invesing securities in Subprime Mortgage Crisis, in-depth analyze the reasons for loss of insurers investment securities.Thirdly, combining of the above analysis, suming up the lesson of insurance failed investing portfolio, make insurance companies realize under the trend of financial integration, the insurance investing portfolio provide substantial returns, at the same time,we must also realize the existence of investment risk. At last, although in Subprime Mortgage Crisis our insurance companies are relatively limited directly affected. We need to guard against the investment risk after further opening up investment channels.We give some suggestion for Chinese insurance companies securities investment. As institutional investors, Chinese insurance companies are required to be have a certain predictability on the overall economic environment, ensure the security of the premise and increase revenue; investment channels of insurance can be liberalized, but insurance regulation must not relax; further improve the management of assets and liabilities of insurance companies; strive to work accurately and fairly at the initial stage of the rating agencies. Hoping that the above recommendations are helpful for China's insurance fund to invest in securities.