Theoretical Research, The Use Of Insurance Funds

Both underwriting operation and investment operation have the same importance in the whole business operation of an contemporary insurance company. But in China, investment is at a subordinate status, made as an auxiliary operation by insurers. This status leads to unfavorable influence on the development of both the insurance investment and the authority supervision on insurance investment. The unfavorable influence on supervision includes the supervision regulation and policies which fall behind the change of macroeconomic circumstance and the development of insurance industry. The unfavorable influence on the investment includes incomplete management system of investment, unreasonable measures and structure of investment, which induce not only low investment return but also unhealthy assets. This situation does harm to the solvency of insurers. Nowadays, insurance investment put strict constraint on the development of Chinese insurance industry. So how to improve the insurance investment becomes a very important problem in insurance theory research and practice.This dissertation makes some research and exploration on interrelated topics of insurance investment and its supervision. This research is guided by Maxi's economic theory and draws on western market economic theories. I do this research under the following trail of thought. At first, I research the necessity and function of investment. Second, I do research on the principles and modes of insurance investment on the basis of the analysis of the fund source and investment circumstance. Third, I compare and analyze the insurance investment and its supervision of foreign countries. Then exploration on the development of Chinese insurance investment and its supervision is made after my analyzing the present status of Chinese insurance investment and its supervision.The first chapter mainly analyzes the necessity and function of insurance investment. The author thinks they are the basic theoretic problem and logical starting point of research on insurance investment. At first, this chapter introduces the definition of insurance investment. Then, analysis of the form of insurance fund and possibility of investment is made from the characteristics of the whole insurance business operation. Meanwhile, the necessity is analyzed at the background of the market economy and the competent financial market. At the end, the function of the insurance investment is analyzed from three sides including insurers, insurance industry and macroeconomic.The second chapter analyzes the factors of insurance investment including the source of insurance fund and insurance investment circumstance. The first part of this chapter analyzes the components of insurance fund and their characteristics. Then, the nature of insurance fund and its requirement on investment are analyzed. The second part analyzes internal and external circumstances of insurance investment. This part tries to research the constraints on insurance investment. This analysis provides the ground for the insurers to make the principles of investment, select the investment modes and sets up the strategies of investment. Meanwhile, it has a very important sense on insurance investment supervision because the authority supervision institutes must understand and assess the circumstance of insurance investment before making proper policies. This part makes theoretic preparation for the following content.The third chapter is divided into four parts. The first one introduces the principles of insurance investment on the basis of the analysis of the above two chapters. Basically, the principles are determined by the nature of insurance fund. The principles must reflect the requirements of insurance fund on insurance investment. This dissertation introduces four principles including security, profitability, liquidity and sociality. These principles are interrelated and show different characteristics in different historical periods with the changes of objective economic circumstance. The second part analyze...