An Empirical Study On The Effect Of The Innovation Policies In Insurance Investment On The Investment Income Of The Life Insurance Companies Based On Difference-in-Difference Model

The operations of life insurance companies involve not only management of debt but also management of asset,and investment is very important for management of asset.In recent years,with the promulgation of a series of innovation policies in insurance investment by China's insurance regulators,restrictions on the utilization of insurance funds have been relaxed,life insurance companies have been able to invest mo re capital in a variety of investment channels,and investment has gradually become one of the main ways of income for life insurance companies.At present,China's insurance funds in investment is facing an opportunity,but there are also some problems.Therefore,this thesis will examine how life insurance companies can increase the investment income and explore how the implementation of the innovation policies in insurance investment has affected the investment income of life insurance companies.This thesis selects 24 life insurance companies as the research object according to the classification of assets,collect and compile life insurance company financial data and macroeconomic data from 2010 to 2015.Three kinds of DID models have been established with the rate of return on total investment as an explained variable,and have been set the time node to distinguish between before the implementation of the policy and after the implementation of the policy based on the time of policy promulgation.This thesis uses the DID models to quantitatively estimate the specific changes in the investment income of life insurance companies before and after the implementation of the innovation policies in insurance investment,to study the different impacts of the innovation policies in insurance invest ment on life insurance companies in different sizes,and to analyze which factors have a significant impact on the investment income of life insurance companies.Empirical research shows that the DID model can explain the impact of the innovation policies in insurance investment on the investment income of life insurance companies well.Empirical research has found that the innovation policies in insurance investment has a positive impact on the growth of the total investment yield of life insurance companies,and the impact of the innovation policies in insurance investment on the investment income of life insurance companies in different sizes is different.It also found that the policy effect of the innovation policies in insurance investment has a long-term effect,and identified the indicators that have a significant impact on the investment income of life insurance companies.The empirical results provide new ideas for the policy implementation of the China's insurance regulators and the management of the life insurance companies.