| Nowadays, investment has provided the foundation of life insurance industry to survive and develop, relating to both solvency ability and business stability. At present, Chinese life insurance companies suffer from intense competition and rate's keeping on falling down, which have lead to potential finance risks. It's high time that life insurance funds should be guided into security market by the proper pattern. However, there is still no systematic research into the choice of approaches to security market for life insurance funds. This dissertation presents the point of view that life insurance investment fund is the best way with the help of the successful experiences of western insurers.The article includes five chapters.The first chapter, the life insurance investment of western countries. It is the common experience to get profit by using life insurance fund for international life insurers. Tracing back the history, life insurance has been linked with investment closely from the beginning.Making the investigation over life insurance investment development process, the conclusion can be drawn that life insurance investment has become the core business of modern life insurance industry, taking into account that investment income possesses quite a large proportion among total income. Life insurers have played the role as both the active participator and the main money provider in capital market. At last, the article analyzes the life insurance investment situation of developed countries, including the comparison of investment assets structure, regulations and development process, in order to point out that security is the most material composition in modern life insurers' assets. Highly securitized assets are beneficial not only to profitability but also liquidity for insurers.Chapter two mainly discusses Chinese life insurance investment present situation and how to find a way out of the difficulty. There is much malpractice in Chinese life insurance investment. Firstly, too low utility ratio of insurance fund has resulted in too much idle capital. Secondly, investment structure that majority of invested assets are cash or bank deposits is unreasonable apparently compared by highly securitized assets of western life insurers. Thirdly, so little investment return makes the situation confronted by life insurance industry even worse, considering that investment gains are principally composed of deposit interests, in the economic environment of continuous low rate. It is these disadvantages that have formed a deep risk accumulation under the action of life insurance industry internal factor-vicious competition and external factor -rate's falling down as well. Because of Chinese life insurance industry is still on its beginning stage, comprehensive expense keeps on quite high, which has caused that life insurer's profit reduces year by year even incurs loss. Chinese life insurers have almost lost competitive power facing the challenge of the foreign insurers after China enters into WTO.Effective settlement step is to widen investment channels of putting life insurance funds into profitable security market under such condition, so that life insurers can not only share national economic development achievements but also strengthen the ability of making profit in long run.Chapter three, the pattern choice of life insurance fund's entering into security market, which is emphasis of this dissertation. With the unceasing progress of Chinese security market, the golden opportunity for life insurance capital entering it has already arrived. How to choose the suitable pattern is the next problem consequently. In common sense, these are three patterns for life insurance capital to enter into security market: direct way, indirect way, and through investment fund organized by life insurers. So-called "direct way" means insurers conduct investment action on security markets directly, which is generally adopted by international insurers because of its flexibility. It is the objective that Chinese life i... |
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