Research On The Investment Model Of Life Insurance Companies Investing In The Retirement Community In China

At present,China's economy has entered a period of rapid development.People's quality of life is getting higher and higher.In daily life,people have strengthened the cultivation of healthy living behavior patterns,which has made people's lifespan longer and longer,and society has gradually shown an aging trend.In particular,China is the country with the largest population,and the trend of aging is particularly significant.As early as a decade ago,China has entered an aging society.Aging has increased the burden of traditional family pensions,which has led to a decline in the quality of life of the elderly.Moreover,the traditional family-based pension model is difficult to meet the old-age needs in the current era.It is urgent to establish an old-age community based on the situation of the elderly and balance the supply and demand of the old-age bed in China,so as to achieve the goal of providing for the elderly in China.Therefore,China's life insurance companies have seen business opportunities,increased investment in old-age communities,realized an increase in economic benefits,and shared the burden of old-age care for some societies and families.However,the old-age community is still a relatively new field in China,and it has the characteristics of huge investment amount,long economic cycle and high risk.Studying the life insurance company's investment model for the old-age community has certain reference to the life insurance company's investment decision-making and project site selection.This paper has learned about the investment trend of life insurance companies based on China's national conditions through literature research,foreign pension community development research,and insurance fund investment in old-age community research.Secondly,the net present value method is used to analyze the investment model of the old-age community.The parameters in the net present value formula are used to analyze the initial investment amount of the life insurance company's investment pension community,possible project income,opportunity cost,and put forward three Assumptions.Assume that the large-scale life insurance company is more likely to choose a wholly-owned investment model to build a retirement community.The large scale of life insurance companies is mainly reflected in the fact that they have enough investment amount,sufficient cash flow and large market share.Therefore,this paper analyzes the relationship between the size of life insurance companies and the investment model from three aspects of Life Insurance Company.It is considered that the larger the total assets of a life insurance company,the more likely it is to choose a wholly-owned model;the greater the premium income of a life insurance company at the project location,the greater the possibility of choosing a wholly-owned model;that the greater the density of personal insurance,the more likely it is to choose a wholly-owned model.Again,collecting as much sample data as possible and perform regression analysis on the two most common models of the investment,which are the wholly-owned model and the joint venture model.Finally,based on regression analysis and actual case analysis,the choice preferences of life insurance companies investing in the old-age community are obtained.The results show that the greater the premium income of the life insurance company in the area where the old-age community project is located,the greater the possibility of adopting the wholly-owned model;the greater the density of personal insurance in the area where the old-age community project is located,the greater the possibility of adopting the wholly-owned model.