The Risk Of Insurance Funds Investing In The Stock Markets

Nowadays,the research on the use of Insurance funds in the world mainly focuses on the research of the model of the rate regulation and the solvency of insurance companies.And most of the domestic research is focused on macro discussion.Due to the rising cost of the insurance company liability side,making it a higher demand for the end of the asset yield.Insurance funds will not only invest fixed income products,but also begin to enter the capital stock market.In recent years,Insurance funds buy equities in stock market frequently in order to to obtain short-term income.They even want to get so many stock rights of the Listed Companies that they can obtain dividends of them.The risk of the stock market is higher,although Insurance funds getting into stock market is the trend and has its necessity,but is essential to the risk control.In order to investigate and analyze the risk of Insurance funds' investments in the stock market and put forward effective solutions aimed at the risk.Firstly,this article concludes the preference of the investment of insurance funds and the dilemma insurance funds face by analyzing the overall data.Secondly,through the analysis of selected case,We get the specific risk of insurance funds when they invest the stock market and even compete for equity with companies' major shareholder.Finally,this article put forward effective suggestions to control the risk and achieve a win-win situation between insurance company and stock market.