Research On Commercial Insurance Funds Utilization In China

The insurance investment refers to the procedure that insurance companies apply the premium, the owner's equity and the profit to investment. As an important part of the management of insurance companies, the insurance investment has always been attached great importance to on the part of insurance companies. Nowadays, it is quite usual that most insurance companies lose on insurance operation while make profit on the insurance investment. By lowering the price of insurance policies, or even offering products at a price that is lower than the cost, insurance companies try to attract more customers and to collect more fund. Thereby, they are able to profit much from the insurance investment, which can not only compensate the loss of the insurance operation, but also contribute a lot to the profit of insurance companies. Therefore the insurance investment has been increasingly emphasized by insurance companies.It has been a habitual practice in China that insurance companies emphasized on the insurance operation while neglected the insurance investment. The companies just focused on marketing whereas lacked enough comprehension with regard to the intensive operation which was realized by the insurance investment. Meanwhile, the government failed to comprehend the inner development law of the insurance industry and hence neglected the development of insurance companies through the insurance investment, or even set a variety of legal and statutory obstacles for the companies to apply the insurance fund in a reasonable way. For many years, the insurance fund has been concentrated on the savings, so insurance companies suffered greatly from the consecutive seven interest rate fall from 1996 to 1999, leaving a hidden hazard for the further development of the insurance industry in China. Despite the fact that afterward the government and insurance companies began to recognize the importance of the insurance investment and opened up some new channels for the insurance investment, there is still a long way to meeting the requirements of the insurance fund. Consequently, it is of great significance to study the development law of the insurance industry, the characteristics of the insurance fund, the principles and theories of the insurance investment, and the risk control, supervision of the insurance investment.This dissertation tries to study comprehensively the source of the insurance fund, the theories of the insurance investment, the channels and risk control of the insurance investment, and the supervision of the insurance investment. Firstly, based on the research of the source of the insurance fund, the principles and theories of the insurance investment, it can be safely concluded that the insurance investment should be subject to the principles of security, liquidity, and profitability. Moreover, theinsurance investment can be directed by the security portfolio theory, the immune theory and the asset / liability matching. Secondly, this dissertation presents some relevant advices with regard to the status quo of the channels, risk control, supervision of the insurance investment in China, and the experience of the overseas insurance investment. It is suggested that the bound should be broken concerning the channels of the insurance investment. Besides, some new channels of the insurance investment are recommended, including mortgage and common share. It also recommends to enforce the risk control of the insurance investment, and studies the system of risk control. And according to the trend of the finance and insurance supervision, this dissertation analyzes the supervision on the insurance investment in China, to which some advices are given.There are altogether five chapters in this dissertation. Chapter one presents the definition and history of the insurance investment; analyzes the source and features of the insurance fund; and studies the mode of the insurance investment and the development trend of the mode. Chapter two deals with the basic principles and theories of the insurance investment...