Cash Flow Risk Management Of China's Life Insurance Companies

In the past several decades, the Chinese life insurance industry has developed at its full speed. Enormous variety took place in the environment that Chinese life insurance companies facing. However, these changes provided life insurance companies with both opportunities and challenges.During a long time, the chinese life insurance companies have accumulated a large of problems, such as the interest spread risk which is not settled yet, the irrational product mix, the insurance investment funds suffering the limited outlet and low revenue and unmatched assets and liabilities. A large amount of cash flow risk has been accumulated in Chinese life insurance companies. Generally, the occurrence of cash flow risk may not only causes life insurance companies' bankrupt, but also huge credit crisis of the whole industry,which may endanger to the social stability.The fact that the life insurance companies don't have the capacity to make prompt cash payment for the policy benefits or other obligations is called the cash flow risk, which may results from every kind of operation risk of insurance companies. This cash insolvency is also named technical insolvency.This dissertation is written from the angle of the use of funds instead of the ALM that is commonly used. According to the condition our life insurance industry, the investigation point is focused on early warning and countermeasure to the cash flow risk in Chinese life insurance companies.