The Research On Risk Control Of Insurance Funds Investment Portfolio

With new insurance regulations promulgated, the insurance company ushered in a new stage of development. The insurance company profits depend more and more on the insurance investment, and the investment business of insurance funds has become more and more important to guarantee the income of insurance company. How to make the investment business of insurance funds be better, become the key of the insurance company to survival and development. The current channels and proportion of investment insurance funds is still under the government’s strict control, for insurance companies, how to control the risk of investment portfolio is very important.This paper is divided into five chapters to study portfolio risk of insurance funds and their controls. In this paper, Chapter 1 mainly introduces the preparation and background of this research; Chapter 2 mainly consolidates the current domestic and international literature on insurance investment portfolio and investment regulation; Chapter 3 research the source and particularity of the life insurance funds, principles of investment of insurance funds and life insurance fund investment risk, and analyze the insurance investment portfolio risk diversification mechanism. It distinguish between the life insurance funds and other funds and it is the he theoretical basis for this study;Chapter 4 takes China Life Insurance Corporation as an example and build the model of this paper by Markowitz portfolio theory. This paper analyzes the status of its business, and gives the portfolio based on the actual situation of China Life Insurance Group’s investment optimization suggestions. This paper argues that the insurance companies should set a reasonable profit objectives, when it invest he insurance funds and it should minimize the risk of the portfolio while it pursues the reasonable profit goals; Chapter 5describes that the insurance companies and government regulators with the development of the insurance industry should be improved, and internal corporate governance and government regulation of improvements through regulatory experience and domestic regulatory status of foreign countries.This paper makes the following innovations in the research: With building investment combination model which based on the insurance supervision department latest regulations of insurance fund investment proportion in 2014, this paper analyzes life insurance fund latest investment situation. This paper put forward the suggestion of optimization of insurance investment, and proposes the insurance company and insurance supervision department to improve supervision method of the investment of insurance funds to adapt to the new requirements of the times according to the latest risk control requirements of market. This make the paper to keep pace with the times, and the conclusions and recommendations of the whole insurance market are more reference significance.This paper makes the following Conclusion: in the investment combination of China Life Insurance, the asset of security high yield low is at high invest level, and all kinds of risk assets is at low level. So,in the recent years, the investment situation of China Life Insurance is conservative, the company should improve risk asset ratio in order to improve insurance funds yield rate.