Development Model And Strategy Of Variable Annuity Insurance Of China

In May2011, China Insurance Regulatory Commission ("CIRC") launched the notice of experimental project of variable annuity insurance and the interim measures of variable annuity insurance management, which would first target to Beijing, Shanghai, Guangzhou, Shenzhen and Xiamen. This issue had much significance in the further improvement of the social security system in China.As a result of rapid economic growth in recent years, China’s inflation rate has been high, which in turn declines the currency purchasing power and increases people’s living expenditure. In addition, China has become the most ageing country in the world. With systematic extension of life duration,"the elder being treated and the sick being cured" has become an unavoidable modern problem. Along with personal income increase and expectance of sound retirement life, the variable annuity insurance with anti-inflation, pension and investment functions will user in a bright future.With no related tax preferential policies in our country, and high requirement of risk control and asset management capability, and exclusion in premiums under new accounting standards, therefore, most insurance companies are not enthusiastic in variable annuity business. Only three small and medium-sized insurance companies have launched variable annuity products so far. Considering the complexity of risk management and pricing of variable annuity insurance, the author argues that large insurance companies should do research and develop such products as soon as possible in order to occupy the business opportunities in this field, and show company’s comprehensive operating strength.This thesis consists of six chapters. The first chapter briefly introduces the basic conception of variable annuity insurance, the content, methods and innovation of this study and academy achievements in the world. The second chapter focuses on theory, reviews theories of insurance demand, investment portfolio and risk management. The third chapter describes the history of variable annuity and its characteristics in several countries and areas. The fourth chapter is the analysis of the development of our country annuity insurance, analysis of the variable annuity insurance environment, development status, problems and favorable conditions. The fifth chapter is about our country development of annuity insurance amount of mode selection, introduces our country annuity insurance products, function and significance, the development pattern and the selection. The sixth chapter management strategies for the development of our country’s pension insurance amount, introduces our country annuity insurance specific management strategy in investment, risk management, sales, etc.