Life Insurance Company Investment Research

Life insurance, an indispensable part of financial system, occupies a very important position in whole national economy. After China's entry into WTO and with more foreign insurance companies entering into this market, the competition is becoming more intense than before in China.The future competition focus on life insurance industry is solvency, which depends on company's investment management level and earning ability. However for seeking safety of insurance capital, the current law of our country has strict limitation on the investment, which constitutes a big solvency risk under the prosperous surface of the industry. Therefore it has become an urgent problem for life insurance companies to expand new investment channel.Through introducing the theory of security portfolio and assets portfolio, this article points out that on the basis of decreasing the risk love, under the precondition of without increase of risks, life insurance companies can effectively rise their earning ability and avoid occurrence of solvency risk by expanding investment channel and investment diversification.