Research Of The Investment Portfolio Strategy Of Insurance Funds

In recent years,China's CIRC has issued policies and regulations on the use of insurance funds frequently.The investment channels have gradually widened.The investment of insurance funds not be limited to the traditional fixed-income assets and begins to transform into diversified investment such as stocks,funds,real estate investment,infrastructure investment plan and foreign investment.In 2014,the CIRC promulgated the "notice on strengthening and improving the supervision of insurance fund ",which clarified the upper limit of the investment ratio of insurance funds on major assets and determined the new direction of supervision.Under this background,in 2016 China's insurance industry realized a total of 3.1 trillion yuan in insurance premiums,with an asset size of 15.1 trillion yuan.However,the investment income of insurance funds declined sharply and the investment yield was nearly 2% lower than 2015,only 5.66%.In this situation,China's insurance fund investment is facing severe challenges.The key to improve the income of insurance funds is to choose a reasonable and efficient investment portfolio,which not only affects the normal operation of the insurance companies,but also relates to the interests of the insured.Therefore,it has a great significance to explore strategies for optimizing the investment portfolio of insurance funds in China.This paper studies the optimal combination of China's insurance fund investment in the context of large-scale supervision.This paper first introduces the insurance fund and its portfolio theory,and then expounds the portfolio of insurance funds in the United States,Britain and Japan.Secondly it analyzes the evolution process of the policy about insurance funds investment in China and dissects the major investment channels,investment income and portfolio of insurance fund.It also points out the main problems in the current investment of insurance funds in China.Then a portfolio of bank deposits,bonds,stocks,funds,real estate investment,infrastructure investment plan and foreign investment is constructed by using Markowitz portfolio model,and the empirical analysis and test are carried out.The empirical results show that in the investment of China's insurance funds,fixed income assets accounted for 54.36%,equity assets accounted for 8.98%,real estate assets accounted for 32.78%,and overseas investment accounted for 3.88%.At last,this paper puts forward policy recommendations to make further efforts to improve the investment portfolio of insurance funds in China from the three angles of insurance companies,regulatory departments and external environment.It is mainly to improve the investment portfolio of insurance companies,strengthen the supervision of the portfolio of insurance funds and optimize the micro investment environment.