Research On The Risk Management Of Insurance Funds Investment

The investment of insurance funds and risk control is one of the most important activities of insurance companies, concerning about the company’s stability and sustainable development. The investment income of insurance funds is the main source of insurance companies’ profits, and has a significant impact on the solvency of the companies. With the development of China’s finance and insurance market, insurance fund investment scale is continually expanding, while insurance companies becoming the most important and stable institutional investors in securities market, and playing a huge role in maintaining the order of the financial markets.In recent years, China’s regulatory agencies have gradually relaxed the restrictions on investment of insurance funds. As a result, the investment channels of insurance funds have continued to broaden, as well as the risk management ability has made great progress. Even though, there are still a lot of problems. Compared with the developed countries, China has narrow investment channel and limited investment income, leading to inefficiency of the insurance funds management; the risk control system of insurance companies is flawed, with backward techniques in identification and monitoring and management of the investment risks; supervision departments of insurance investment funds needs to improve the supervision system. In addition, due to the increasingly complex macroeconomic environment, investment channels for insurance funds are diversified, and at the same time the investment risk is unprecedented complicated and unpredictable. Therefore, research on the insurance fund investment management and risk control is very important, and how to enrich the investment channels, to ensure the stability of investment income under certain risk is the key to the insurance funds management.In this paper, the investment of insurance funds and risk control is the main line. The main points are as follows:Firstly, introduce the general situation of insurance funds investment of China in recent ten years, focus on the analysis of the investment scale, structure, income and risk control, drawing a conclusion that the insurance funds investment in our country is growing rapidly but the investment channels and investment income needs further improvement, raising the problem of the risk management internal control system and external supervision system.Secondly, summarize the insurance funds investment and risk control experience of the United States, Britain and Japan; analyze the main problems in the risk management of Chinese insurance based on the comparison of China and foreign countries. Finally, give suggestions of improving China’s insurance fund investment and risk control abilities based on the existing problems of the insurance funds management and the advanced management experience of the developed countries; those suggestions include three aspects:the improvement of the macroeconomic environment, supervision system and the internal risk management system; then emphasize the usage of asset liability management model and portfolio model and VaR method in China, exploring the application patterns in our country. Only in this way can we improve the efficiency of the insurance funds investment and the risk control ability.