Discussion On The Structure Of Financial Derivatives Based On China 's Life Insurance Dividend

Since2000Chinese life-insurance company launched the firstParticipating insurance，Participating insurance will continue to grow.The sizeof the basic premiums is growing every year， and the proportion of totalpremiums inChinese life-insurance company is also growing everyyear.Participating insurance eventually become the main participatinginsurance Life insurance China.Participating insurance is a double-edgedsword for Chinese life-insurance company.Participating insurance brought notonly the premium increase， but also the investment issues， namely equityasset market risk and asset liability mismatch problem.Development ofparticipating insurance needsChinese life-insurance company to invest a lot ofmoney in high-risk equity assets in order to improve the yield portfolio，But thiswill increase the market risk of the portfolio.Asset liability mismatch is the mainperiod does not match and the rate of return do not match.Participatinginsurances Of Chinese life-insurance company is mostly long-term insurance，but the asset investment Of Chinese life-insurance company is mainlyshort-term assets.This has resulted in assets and liabilities maturity mismatchproblem.Participating insurance effectively solve the problem of traditionalinsurance products LiChaSun.But safeguard function of most Participatinginsurance of China life insurance company weakened， the main way to attractconsumers is the dividend risk investment function.But because the assetallocation of China life insurance company tends to the combination of lowrisk， leading to the result that China life investment rate is not high， and theserious influence of China life insurance of share out bonus dividend level，making it below The expected level of consumers.This could lead to seriousloan Fcirnisains.cial derivatives including options，swaps， forwards and futures.Each has its own characteristics， has both advantages and disadvantages，and can be combined with the integrated use of the specific situation.According to the foreign advanced experience and relevant theory，Chineselife-insurance company can use the appropriate financial derivatives structureto solve the problems，effectively promoting the development of ParticipatinginsuraTnhcies.article will take the actual situation of Chinese life-insurancecompany as the basis， to investigate the structure of the appropriate financialderivatives， and put forward the suggestions of the use of financial derivativesfrom Chinese life-insurance company itself.This article mainly uses thequantitative analysis， comparative analysis and literature.This articleadopts aquantitative analysis of model， including the VAR model and black-scholes pricing model.This article discuss the Financial derivativesconstructions， through the effective way to compare various financialderivatives， to find out in conformity with the investment structure of Chinese life-insurance company.This article cites the relevant personnel of researchresults and research data， on the basis of its own research direction for thedevelopment effectively.This article is divided into five chapters. The first chapter is theintroduction，mainly introducing the topic background and the significance ofthe article. The second chapter is the theoretical basis， mainly on the financialderivatives theory of Chinese life-insurance company ’s use. The third chapteranalyze the investment problem of Chinese life-insurance company’sParticipating insurance， namely equity asset market risk and asset liabilitymismatch problem， then puts forward the problems of the investment offinancial derivatives from the company itself.Inthe fourth chapter， accordingto the characteristics of different financial derivatives， combined with theactual situation of Chinese life-insurance company， take the specificdiscussion of financial derivatives with the appropriate structure to solve theproblems of the market risk of equity assets and asset liability mismatchproblem and then made its recommendations of the investment in financialderivatives from China Life Insurance Company level. The fifth chapter tellsthe summary to the full text.