The Analysis On China Insurance Company's Asset Securitizations Development

In the past 30 years of reform and opening up, China's market economy has made remarkable achievements. During this period, the emergence of asset securitization in China's financial markets turns into another level. As a branch of the insurance market in the financial markets, insurance has made astonishing speed since the accession to the WTO, premium and its coverage are gradually increasing. Insurance market acts an increasingly important role in the financial market and the linkage between the capital markets is also growing.From the linkage between insurance market and capital market, the way of linkage is diverse, from a financing point of view of the more common initiative public offering of the insurance company or issuing bonds for financing. In contrast, asset securitization, as an innovative system, which provides investment and financing mechanisms, is more innovative and practical significance. As China's insurance industry development, asset securitization is the general trend. Therefore, this article is going to study on how to import this innovative system from aboard.Firstly, this paper gives an accurate definition of "insurance securitization" and study on the general principles of asset securitization and mechanisms. According to this, this paper exactly studies the insurance company's asset securitization in China. It mainly includes two categories:policy loans securitization and securitization of life insurance policy. Next, based on the financial perspective, the paper gives a analysis on financial obstacle when importing this system and possible solutions or recommendations. In this chapter, the main way is to combine foreign successful experiences and relevant systems and regulations with an analogy of our own national conditions. Finally, make a clear analysis on necessity and feasibility of importing the insurance asset securitization and explore a new mode in which our own insurance asset securitization should be carried out.Thesis chapters as follows: In the first chapter, it describes the basic theory of the insurance asset securitization and interprets its economic significance of insurance companies. This section is the theoretical foundation of the whole test. Firstly, the paper defines the general concept of asset securitization, and then goes through to the definition of insurance asset securitization. Next, the article gives a comprehensive analysis on the basic theory of asset securitization, such as the characteristics and operation mechanism. Finally, from the perspective of sponsors and investors, the author simulated case interpretation of the insurance securitization of insurance companies.In the second chapter, it studies the specific part of the insurance company's assets in securities. In this paper the insurance securitization is divided into three categories:Insurance incremental asset securitization, insurance investment securitization and insurance asset securitization. In view of incremental asset securitization of insurance has been studied very much, this study only involves the latter two. Insurance investment securities are of great interpretation of the linkage between the insurance market and capital market interaction. Insurance Asset securitization is the focus of this paper, and its principles with the general assets of securitization is substantially the same, which is the initiator get the assets that lack of liquidity and more stable future cash flows restructured and been a pool, in order to support the issuance of securities. Therefore, finding out the assets is the key. From the view of insurance company operation, I believe that policy loans and life insurance policies are in line with the ideal characteristics of securitized assets.The third chapter, it focuses on the main obstacle on the relevant financial systems analysis and proposes a solution. The author analyzes the accounting treatment from the recognition, measurement and consolidation and from the promoters, SPV and investors to resolve the three perspectives of different tax policies on the impact of the three. This section uses the analogy of the method. That is to say, through the success of foreign accounting and tax treatment in The fourth analysis, correspondently analyze our country's relevant situation. chapter is the main purpose of this writing. That is how to import this system. First of all, I made the necessity and feasibility analysis. Under this premise, the author proposed for China's insurance asset securitization model. Meanwhile, the thesis make a bold explore, aiming to break a new path of Chinese insurance securitization including the previously mentioned policy loans securitization and securitization of infrastructure assets. Finally, the author gives some suggestions on importing this system.Innovations of this article:First, this topic may be forward-looking. Looking at the domestic research on asset securitization, the majority of articles tend to focus on corporate accounts receivable securitization of equity securities of toll highways and bank credit asset securitization, asset securitization of insurance is very rare. In Insurance industry, the risk securitization research article is usually and lack of systematic research.Second, the topic is instructive. The purpose of this paper is to study the basic theory of asset securitization and apply it to the China's insurance market. It has a strong practical significance.The shortcomings of this article:The test is mostly qualitative analysis and lack of professional analysis tools. In addition, the financial case is not specific and comprehensive enough.