Study On Path Of Insurance Fund Invested In Pension Real Estate

China has entered the aging society since2000, the growing number of agedpopulation and the lack of pension resources formed the main contradiction of China’spension. But it is unrealistic to solve one hundred million elderly people’s pensionproblem just by government finance. Pension real estate is a good way to solve thisproblem. However, finance problem of pension real estate is the major problem just liketraditional real estate.Recently, Chinese insurance industry developed fast, the scale of insurance fundshas increased year by year. The scale of insurance industry assets has increased to7trillion. But the default risk in insurance industry is increasing. In order to avoid the risk,Insurance business need to improve its profitability and build a diversified investmentchannels. Since October12009, the new “insurance law” have carried out allowing theinsurance fund to investment immovable property. Characteristics of pension realestate investment recovery period is long and cash flow is table what consistent withinsurance funds’ long term and stability and also in line with income security ofinsurance funds. In order to meet the requirement of insurance funds, insurance caninvest in real estate through REITs. Thus, Invest in pension real estate can broaden theinvestment paths of insurance funds. Not only it can solve the finance problem ofpension real estate, but also it can alleviate Chinese insurance asset’s liability mismatchproblem. If choose REITs as the way to invest pension real estate, insurance fund candisperse it risk by REITs.The paper uses the method of data analysis, contrast analysis and summarized.Demonstrated the feasibility of using insurance fund to invest pension real estate. Provethat it is a good way to use insurance fund investing pension through REITs.