| With the rapidly changing economic and financial environment, the residents’ finance and investment management tools diversify, no longer confined to bank deposits, bonds, stocks, funds and related derivatives. Investment-oriented life insurance products are also one of the important investment tools. The investment-oriented life insurance products have both the safeguard and the investment functions. They, especially in the background of high inflation rate, adopt themselves to the diverse financial needs of modern society and get a high development.Ping An Insurance Company has introduced into China the investment-oriented life insurance in 1999. With the prosperity of the capital market and consumers’new choices of investment methods, the investment-oriented life insurance products are pursued in the market ever after. Later, other insurance companies also launched investment life insurance products. Given the downturn of domestic stock market in 2001, out of emphasizing the investment function while ignoring their basic safeguard function, the investment account value of the investment-oriented life insurance products seriously diminished and sales had a short-term stagnation. The investment-oriented life insurance products flourished in 2006 with the upturn of the stock market. The stock market fell again in 2009 and pushed the investment-oriented life insurance products to one more predicament.The investment-oriented life insurance products expose some problems in its development process, for instance, the investment channels of insurance funds is narrowed; the investment account value is influenced directly by a securities market fluctuations; the information disclosure system is not perfect; the investment yields are low lack stability... All the problems have seriously hindered the development of investment-oriented life insurance. The Ministry of Finance issued "Insurance contract relevant accounting treatment provisions" in 2009, and this influences the development of investment-oriented life insurance products to a certain extent. The provisions require the insurance companies divide the premium into two parts:premium income and premium deposit, and the investment business income and deposit income will no longer be included in the premium income. Basically, the investment-oriented life insurance products are financeing products. Therefore, the most part of the investment-linked insurance premium and universal life insurance premium are not included in the profits. Influenced by the new provisions, life insurance companies replan their business direction and focus on the traditional protection business. Such steps accelerate the shrunk speed of investment-linked insurance, universal life insurance business.In order to better the development of the investment-oriented life insurance products, this paper adopts a combination of theoretical analysis and empirical analysis to make a study of investment-oriented life insurance products from the following aspects:the history of investment-oriented life insurance products, the economic environment in China and the insurance market conditions. This paper also analyses their existing problems and main factors, thus putting forward corresponding recommendations and measures. It aims to give full play to the investment-oriented life insurance products’own advantages and develops into a main Financial investment tool in China’s financial market.The paper is divided into five Chapters. The framework is as follows:The first Chapter, "Overview of investment-oriented life insurance products and their needs." It expounds the meaning of investment-oriented life insurance products, presents the specific types of investment-oriented life insurance products, compares the investment-oriented life insurance products with traditional life insurance products and introduces the emergence and development of investment-oriented life insurance products. In the end, this paper details the meaning of needs, life insurance needs and investment-oriented life insurance products needs. This Chapter is an overall grasp of the investment-oriented life insurance products.The second Chapter, "The status of needs and existing problems of China’s investment-oriented life insurance products". Firstly, this Chapter analyzes the development environment of China’s investment-oriented life insurance products; Secondly, it introduces the development process of investment-oriented life insurance products and also analyzes investment-oriented life insurance products’ total and subtypes; Lastly, it obtains some problems of the investment-oriented life insurance.The third Chapter,"The influencing factors of the needs of investment-oriented life insurance products". Out of the particularity of the investment-oriented life insurance products, this Chapter classifies the influencing factors into two categories:general factors and special factors. Generally speaking, the general factors are economic development level, insurance consciousness, insurance products purchasing power and rate of inflation; the special factors are financial product substitution rate, rate of return on investment and residents investment tendency.The forth Chapter,"Empirical Analysis of the needs of China’s investment-oriented life insurance products". This chapter is a qualitative analysis. It adopts gray relational analysis to analyze the influencing factors of the investment-oriented life insurance products, thus obtaining the degrees of influence that the factors to the premium of investment-oriented life insurance products.The fifth Chapter,"The corresponding suggestions to the sustainable develop-ment of China’s investment-oriented life insurance". Based on the empirical analysis in Chapter four, this Chapter provides corresponding suggestions from the needs and supply aspects. The needs aspect includes giving priority to education, improving consumer awareness of insurance and formulating the appropriate tax policies. The supply aspect includes widening the investment channels of insurance funds, improving the investment rate of return; changing marketing model and enhancing products information disclosure. |
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