A Study On The Risk Management Of Insurance Funds Usage

With the constant development of China's economic globalization, insurance funds in China have been expanding, channels continue to be broaden, efficiency is improving, however, more and more pressure in funds, competition and interest rate have brought uncertainty to insurance companies. In the process of using funds, more and more risk is accumulated. In this situation, to find an efficient way to control risk is really an urgent task.At present, the risk management level of our insurance companies is generally at a lower level. Because of short- time operation and focusing on premium income, China's insurance industry accumulates large business risk in the process of doing business. Risk measurement is the basis of risk management. As an unique tool for risk measurement, VaR can measure risks in the use of funds. The VaR method applied to the insurance company will greatly improve our risk management of insurance companies, reduce the level of risk management with the gap between foreign insurance companies.This paper firstly overviews the status of our insurance funds, and compares with developed countries in channels and efficiency; then, the paper uses the way of qualitative analysis and quantitative analysis (VaR) to stress the risk in the use of insurance funds; at last, according to the analysis, this paper brings several suggestions based on VaR both inside and outside risk management.