An Empirical Study On The Optimal Portfolio Of Insurance Funds Under The Supervision Of Large Classes

February 19,2014,China Insurance Regulatory Commission issued the notice on strengthening and improving the use of insurance funds proportion regulatory,the insurance investment assets were divided into into liquid assets,fixed-income assets, equity assets,real estate assets and other financial assets,and formulated the proportion of large class supervision and risk monitoring.This is another regulator that reflectes the attitude of reform since 2012 China Insurance Regulatory Commission launched a series of regulations for the investment of Insurance investment scope.From 2012 onwards,China Insurance Regulatory Commission promulgated 13 policies, the market-oriented reforms of insurance investment were significantly advanced,the investment channels of insurance are greatly expanded,the scope of investment in financial products were expended.Unlisted equity investments,infrastructure debt investment plans,capital trust scheme, financial products,asset-backed project plans,real estate investment plans,brokerage special asset management plan,the stock index futures,financial derivatives and other financial products were all included in the scope of insurance investment.The operating space of insurance funds was substantially increased,the policy enforcement continuously strengthen in 2013,investment channels of insurance funds are almost fully open,non-standard assets of alternative investment accounted for a significant boost in the investment of insurance funds.With the enactment of the new regulatory deal,the insurance funds regulatory policies in China and international regulatory practices are at same level,the use of space China’s insurance funds become more broader.as a long-term institutional investors,insurance companies have become one of the financial industry that have the most extensive investment area.Underwriting and investment is often referred as two wheels for the insurance company.With the increase of the underwriting business,the underwriting profit declines,the use of insurance funds is becoming more important.As we konw,the insurance funds investment portfolio is related to the investment income, which is also an important factor that affect the solvency of insurance companies. Under the background of the implementation of the insurance investment ratio,the investment channel is further relaxed,the investment autonomy of the insurance company is greatly improved.For insurance companies, how to determine the optimal investment ratio is the key to maximize the benefits of the investment income.In this paper,from the perspective of theoretical analysis and empirical analysis,we study the optimal portfolio of insurance funds in the context of the implementation of the large class of insurance.First analysis history and current situation of the use of insurance funds in our country,then analysis insurance funds application experience in part of the insurance developed countries,then use Markowitz model for empirical research,finally summarizes the research conclusion and puts forward policy recommendations.Mainly includes five parts:The first chapter is the introduction, including the background and significance of the research,research status at home and abroad,the main content and research methods,innovation and deficiencies.The second chapter analyzes the application of insurance funds in China.First reviews the history of insurance investment,and then analyzes the status quo of the use of insurance funds from insurance fund scale,investment structure,investment income.The third chapter analyzes the United States, Britain and Japan insurance funds application situation,and has carried on the summary:characteristics of insurance liabilities, financial market environment and regulatory policy constraints are three main factors affecting the use of insurance funds.The fourth chapter is the empirical part of this paper. In this chapter, we use the most basic Marco Weitz portfolio model to analyze the optimal combination, and put forward sunggestions:the appropriate reduction of the proportion of bank deposit investment, stock investment should be cautious, improve the capital market.The fifth chapter is the conclusion and policy recommendations. Based on the research of the previous chapters,we put forward sunggestions for the insurance company, the regulatory authorities and the government at the three levels.