| How to use insurance fund has always been a hot topic in china. Unlike the western insurance developed companies, profit of Chinese insurers mainly depends on the premium. Today, to develop insurance investment is very urgent, especially after 7 times of reducing interest rate. If the situation keeps the same, the insurance companies of China will find it hard to fulfill their obligations in the future. For life insurance companies, things are even worse because they often set policy rate higher than bank rate to increase market share. Although since Oct. 1999, the gate of stoke market has been open to insurance fund, but many problems still exist. First, the fund permitted to stoke market is limited to 10% of total. It means that there are still more than 100 billion yuan of insurance fund that have to be invested to bank deposit, financial bonds and government bonds; Second, the stock market is still imperfect and speculative. So the insurance companies will undertake great risk in buy and selling stock. Third, insurance companies is limited to buy investment fund, which is disadvantageous to cultivate talents. That is to say, the staffs lose the chance to operate directly in market. So, stoke investment cannot solve all problems. It is important to find new ways to increase the investment yields. In recent years, many studies have been done on developing insurance investment. But most research was focused on the necessity to open the investment and little has been done on how to use the feasible mediums better. There are few articles on insurance investment in government bond market. In fact, government bond plays a very important role in insurance investment. It has been more than 10 years since the restore of issuing gilts. Comparing to the rapidly growth of government security market, the way the insurance companies to invest to this market seems to conservative. If insurers allot their capital efficiently on different types of gilts and different financial tools, the result of investment will be better even under the same regulation. However, at present, problems faced by insurers in China are fairly complex, and it is impossible to change the situation by one or two means. The objective of this dissertation is not to find a thorough solution, but to explore how to improve the investment profit from gilts market. It has following five parts:Chapter one is " The status quo of insurance investment". Section one introduces the different source of insurance fund and application principles. Because most part of the fund is the debt to insurants, the principle includes security, liquidity, productiveness, validity and sociality. Section two explicates the disadvantageous situation. Insurance companies are now faced with great pressure. On one hand, the rate of the policies worked off is too high; On the other hand, the investment benefit is too low.Chapter two is focused on the view that insurance industry and government bond market will push each other forward if the investment behavior of insurers is active and efficient. The traits of gilts satisfy the request of the insurance investment. Moreover, the rapid development of the market provides a favorable condition to insurers. While, insurance fund entering into gilt market will bring positive effect to the market itself. Insurance companies can not only participate in issuance but also attach themselves to circulation of gilts.Chapter three is titled "Expanding the way of insurance investment in government bond market". There are many problems in gilt investment, but the most deficiency is the stricture of channel. So, first of all insurers must consider expanding the way of gilt investment. The section analyzes the feasibility of insurers to bid to buy gilt in first class market. The section three points out that it is of great significance for insurance companies to participate in repurchase market. This market affords chances to insurers to utilize temporary idle capital and to finance capital in urgent case. Besides cash market, the fu... |
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