The Difficulties And Strategies In China’s Insurance Company To Invest Retirement Community

After entering the21st century, China’s aging population is increasingly grimmernowadays. Aging problem highlights the increasing demand for endowment. With theincreasing proportion of elderly population, demographic structure changes. This model relieson our traditional family pension mode. Our urgent need to find solutions to ease theproblems of the Aged is urgent. At the same time, our country’s insurance industry is playingan increasingly important role in the financial system. With the rapid development of theinsurance industry ’s premium income which is increasing year by year, competition amonginsurance companies is fierce. Because the insurance company is debt management, whichfaces enormous pressure on profits. The insurance companies need to find a way that caneffectively improve the investment channels of insurance investment yields. In order toresolve their problems, pension investment channels for insurance companies would be awin-win approach.This paper is based on the current problems of our country in the pension and insuranceinvestments that exist. It proposes the necessity and feasibility of a insurance companyinvesting in the retirement community, which can not only solve the problem of the elderpeople’s pension issues, but also can help insurance companies find new investment channelsand access to steady earnings. Because of it, the paper analysis the current situation of ourcountry establishing retirement community. And then it describes how Union Life andTaikang Life built their typical retirement communities as examples. Based on the examples,the paper analysis of the reality of our insurance company invests the pension community.According to the analysis of the cases, the paper sums up that there are still a lot of problemsfor China’s insurance companies to invest in retirement communities. The problems are asfollows: inadequate laws and regulations, lack of government support, short of experience ofChina’s insurance companies investing in constructing retirement communities, the high priceof the retirement community. To compensate for their deficiencies, the paper analysis theforeign mature retirement community. We can learn a lot from the their valuable experience. Finally, the paper combines with the difficulties of the current insurance company investing inretirement community, it puts forward the relevant suggestions. Such as we need to improverelevant laws and regulations of the institution building, increase government support for theinsurance company investment in retirement community, base on specific conditions, so thatthe insurance company can construct the retirement community with characteristics of ourcountry. We hope that the construction of retirement community by insurance companies cannot only bring revenue to the insurance company, but also help the old people solve the apartof pension problem indeed.