Insurance Market And Capital Market Interactive Development Problems

With the economic integration of the world and the opening of the insurance industry to the world, the mergence of China insurance industry into the international market is progressing rapidly, and insurance enterprises home and abroad have been in out-throat competition. In recent years, insurance enterprises in our country has developed very quickly, but the problems of low assets income ratio and balance loss make the China insurance industry into trouble of incapability of payment, and the incomplete structure and functional faulty of the market make development of the capital market slow . The bottleneck restrictions met by the rapid development of China insurance industry and major developing crisis hiding in the capital market press for their coordinate advance. Firstly, with the rapid development of the insurance industry, plenty of insurance capital is to enter the capital market for maintaining and increasing its value. The combination of insurance market with capital market is the requirement not only for the insurance enterprises to build effective investment portfolio, make the assets and liabilities match and reduce interest risk but also for the capital market to provide the risk sharing mechanism, stage of investment portfolio and specialized management environment and meet the requirement of insurance capital to safety , fluidity and profitability .Secondly, the capital market requires the insurance enterprises to provide stable and long-term capital source as the organization investors . As an important organization investors of the capital market, the insurance companies may improve the structure of the capital market and promote its healthy development. Insurance funds, especially pension, has the features of long term and stability and it is the most stable investment source of the capital market. Therefore, the sound mutually-promoted progress between the insurance market and the capital market is not only the objective requirement of the development of financial system but also the inevitable choice of the sustainable development of the insurances of our country after entering the WTO. However, what should be responsible for the unformed positive mutual promotion of the two markets in our country? How to break out of the trouble and facilitate their sound mutual progressing for both achieving their advance by obeying the inherent law of financial development? These both are problems we should solve as soon as possible and important tasks faced by our financial industry.By analyzing the two above-mentioned markets, the article introduces their mutually-promoted relationship by examples. Based on the successful experiences from the developed counties, the route selection and suggestions for achieving the mutually-promoted development of the two markets by analyzing their present conditions and existing problems and difficulties together with relevant truths in China. We expect that the good mutually-promoted development of the two markets will be achieved and they each will break out of their own troubles and be in the sustained, healthy and rapid development, based on risk control.