Optimal Allocation Policy For Initial Capital Of XH Insurance Gansu Branch

Insurers initial capital allocation strategy is the insurance company’s actual business in the important part. Effective initial capital allocation strategy can reduce operating costs and improve profitability for life insurance companies, can also unify the relationship between the level of risk and business objectives. The initial funding allocation strategy mainly by the life insurance company branches operating expenses, management fees, finance charges, labor costs and other components, are managed by the budget system. The main function is to improve capital efficiency, control the scale of the use of funds to ensure the normal operation of institutions.XH Gansu branch is operating life insurance business based life insurance company, its capital allocation strategy longstanding "heavy operational costs, training costs of light" phenomenon. Although the company has established a modern budget management system, but the concept of a more extensive distribution costs, mainly on the basis of experience as a manager of the funds allocated. Budget system does not play its due role, resulting in Gansu branch XH insurance costs in recent years, rising scale, product sales stagnated, low capital efficiency.XH insurance based on the actual situation of Gansu Branch to develop scientific and effective optimization model to solve their initial capital allocation policy problem is the focus of this article. Thesis on insurance Gansu branch XH existing budget allocation policy analysis, combined with financial data, the use of the theory of classical risk model to cost allocation, risk level, the total profit of the core statistical model, trying to find the one to determine the level of risk The relationship between the distribution of the costs and profits between the numerical simulation techniques seek XH insurance Gansu branch of the initial solution of optimal allocation of funds, which provide the basis for the development of a more scientific and effective initial capital allocation strategy.Standard tried using theoretical analysis, modeling of ideas and methods to solve practical problems XH insurance Gansu branch on the initial capital allocation strategy, but also for the life insurance company branches similar reference in cost allocation policy formulation, while the risk factor into the cost of distribution, but also for managers to provide a new cost allocation ideas.