Research On The Optimization Of Insurance Funds Investment Structure In China

The development of insurance industry is based on underwriting and investment.As the insurance industry in China has been up to 3000 billion,whether it can succeed depends on the rate of return.In the process of rapid development,there are lots of achievements along with some problems,such as low yields,imperfect risk and few investment channels,which affected the healthy development of insurance companies and domestic insurance industry.Thus it is of great significance to improve the level of utilization of insurance funds for the sustained and healthy development of the insurance industry.According to the conditions and characteristics of insurance investment,risk management and investment portfolio model are used in this research.Our research breaks through the limits of traditional "insurance investment strategy" based on the relevant policies,especially those since 2010.This research conducts an empirical study on Ping An Insurance(Group)Company of China,which aims to promote the optimization of investment strategy,to improve the efficiency of insurance funds investment and increase the rate of return.The research mainly includes five parts:The first chapter puts forward the background and significance of the research and provides the theoretical foundation and the analysis premise for the following research.The second chapter carries on the literature review and combs the domestic and foreign related researches on the of insurance funds investment to build foundation for the following parts.The third chapter elaborates the characteristics and the development status quo of the insurance funds investment,which plays a transitional role.The fourth chapter is the empirical study on the optimization of insurance fund investment structure and the further analysis of the problem.On the basis of the previous research,the empirical research is carried out to form the analysis conclusions.The fifth chapter is the summary of the research.Some suggestions are put forward on the insurance funds investment in China.The insurance industry data is compared and the present investment condition of insurance companies is also examined.We also analyze that investment scale grows fast whereas the rate of return keeps lower level.The main reasons are as follows:(1)the lack of enough investment channels;(2)the lack of investment experience;(3)the immature of capital market in China.With the continuous growth of domestic capital market and regulatory policy,we would have multiple choices.We divide present objects into 5 parts and choose them to build investment portfolio model.Also,we propose the suggestions about how to broaden investment channels.Part of empirical research in this paper,we put forward the hypothesis that the investment portfolio model should be chosen to ensure the risk minimization at the level of return.First,we need to calculate the proportion of the objects,the rate of return and the covariance of various types of assets.Second,we need to calculate the effective investment portfolio.Finally,we need to compare and analyze the theoretical optimal portfolio and the actual investment proportion.The conclusions include:(1)Although insurance industry in China has developed rapidly,there are still a series of problems,such as the unreasonable investment structure,the low rate of return and the poor stability;(2)In other categories of investment,bond investment plans and real estate investment develop quite well.There is still much room for the insurance companies to broaden their insurance funds investment channels;(3)The determination of the insurance funds investment structure must be based on the full consideration of the insurance companies' risk tolerance and preference;(4)The insurance companies need to combine their own characteristics and objectives to develop investment strategies,so that the companies can give full play to comparative advantage.