Study On Life Insurance Funds Investment In Pension Real Estate

With the rapid development of China’s insurance industry, insurance premiumincome and asset scale grown rapid ly, the scale of the insurance industry’s total assetsincreased from459.1billion yuan in2001to5.0481trillion yuan in2010. Theinsurance company is efeing increasing pressure of capital allocation and value-added.It is need to improve the efficiency of the investment of insurance funds and build amore diversified investment channels to avoid market risks. The new "insurance law"issued in October2009further expands the investment channels of insurance tfmdsand provides a legal basis for China’s insurance funds to invest in real estate. As aform of a "pension+real estate" Pension real estate has long Payback period andstable earnings, and Close relationship with life insurance products operating. As agreat way of life insurance funds to widen the investment channels, investment inPension real estate can not only solve the ifnancing problem of Pension real estate inChina, can help achieve the diversification of investment of life insurance funds,effectively alleviate the mismatch of assets and liabilities of life insurance companies,diversify risk and secure a stable income.This paper mainly uses the method of normative analysis supplemented by dataanalysis to describe the status of China’s life insurance funds investment and Pensionreal estate development. Drawing on the basis of the U.S. e^q^erience in Pension realestate development, this paper carries out a detailed analysis of the efasibility,investment patterns’, and investment risks of Chinas life insurance flinds investmentin pension real estate.