Research On The Risk Of The Life Insurance Pricing

The insurance industry is one of the three pillar industries of financial. Theinsurance industry is an integral part of China’s financial system. In the21st century,China’s insurance industry is booming, competition in the market system is beingcompleted, the competitiveness of the industry continue to strengthen. The premiumincome of Chinese insurance industry has exceeded500billion mark in2011. Hugepremium income of insurance companies lead to a new topic to the liabilities of operating.Improve yield through effective investment is the only way.A fast-growing industry is greeted while insurance demand for a new investmentchannels of insurance funds. It is a sunrise industry in China, is a seeking funds industry,is a industry that has market potential, then it is the pension industry. In2000, Chinaformally entered the ranks of countries of the aging of the population. With the growingpopulation aging, the composition of the population structure is changing, family supportmode being impacted. An industry rises quietly with the rapid increase of the needs ofpension institutions and pension service. The pension industry revenue model has thecharacteristics of long-term and stability, in line with needs of the investment of ourcommercial insurance. The fusion of the two industries are already visible. The new"Insurance Law" allow insurance funds be invested in real estate, so that both besupported in law. Many insurance companies have begun to try to invest in the industryof pension. Whether the way of the insurance funds invested should be limited to realestate and which mode of pension insurance investment industry should be adopted areall the focus of this paper.First chapter introduces the current situation of our commercial insurance funds toinvest and the pension industry. While introducing investment in commercial insurance,primarily on the evolution of investment channels, as well as the status of the investmentincome of the main channel, on the basis that finds that the rapid development of China’sinsurance industry, pointing out that the need to increase investment in new channels.While introduce the current situation of the pension industry, starting from the extensionof the pension industry, clearly point out which products and services belonging to thescope of the pension industry, as well as the reality of state of urgent needs funding of the constituent products. The second chapter demonstrated the feasibility of insurance fundsinvested into of pension industry on the basis of the first chapter. The article first arguesthat the insurance funds into the pension industry, two industries can achieve a win-win.One can provide an effective supply, the other one has a wide range of demand and profitmargins, reflecting a win-win situation of the combination. After the argument of theWin-win, the article demonstrated the feasibility of the combination. Supported from thelegal, industry experience and sufficient funds to conduct feasibility studies. The thirdchapter is the core of this paper, introduces the mode of the insurance funds investmentedinto pension industries. Article discussed from insurance funds invested in real estate, inpension services and in pension financial products. In each part, discussions are all beginfrom the introduce of the foreign typical pattern, and then combined with Chinese currentsituation analysis of the specific modalities of insurance funds invested into the pensionindustry, the problems and solutions.