The Research Of Insurance Funds Investment On Real Estate In China

In recent years, the insurance market in China has experienced rapid growth and all kinds of premium income continues to grow. At the end of2013, the original scale of premium income has reached1.722224trillion yuan. As an important source of insurance funds, the rapid growth of the premium income makes the size of available founds larger. However, the channel which is used for insurance funds is too narrow. Insurance funds are mainly used for bank,bonds,stocks and so on. And the term structure for insurance investment is obviously unreasonable. On the one hand, it is bad for insurance company to spread risk and increase revenue by portfolio investment.on the other hand, it makes the insurance funds face the mismatch risk of the structure between funding deadline and investment deadline.So insurance funds urgently need a new investment channel to solve these two problems.In view of this,the new "insurance law" enacted in September2009allowed insurance funds investment real estate for the first time.’Interim regulations of the insurance fund investment real estate’enacted in September2010, further clarified the details for investment of insurance funds. According to this, real estate is adopted to the scope of investment and regulation.Insurance funds has the characteristics of debt, long-term and stability and the corresponding investment of insurance funds pursues safety, long-term and profitability.Because the real estate investment cycle is long, and the profit is relevantly safe and stable after building. And it also matches to the investment funds and request. So real estate investment is a very good direction for insurance companies.That insurance funds invested real estate can be a good match for insurance funds for a long time. So it can reasonably allocate the assets and liabilities structure of insurance company,and reduce the unreasonable risk of the investment of insurance.At the same time, investing real estate can rich the portfolio of insurance funds.It is helpful to reduce the systemic risk of investment for insurance funds.So doing a good job in real estate investment is of great significance for the insurance company.The investment of insurance funds in real estate in our country at present is still in its preliminary stage,and a lot of problems still exist in the process. And it is not conducive to the development of real estate investment of insurance funds. In this paper, I study the problem on insurance funds invest real estate and analyze the present condition in China.And I summarize the general situation and experience of the real estate investment about the developed countries.Then I also analyze the pattern and risk control of insurance funds investment for real estate in China.Finally I dive some advice and prospect about insurance funds in China based on the analysis of the real estate.