| In recent years,with the rapid development of the insurance industry and premium income,the amount of insurance funds available for investment is also becoming larger.It is important for the development of insurance companies to improve the rate of return on investment and the efficiency of insurance funds.The problem of investment of Chinese insurance companies is unstable and low returns.The Chinese Insurance Regulatory Commission(CIRC)has issued a policy in October 2012 to allow insurance funds to participate in the financial derivatives trade,and the first standard option contract has landed on the Shanghai Stock Exchange in February 2015.However,because of the late start of the option market,there are many detail problems in both the regulatory system and the trading operation,so it is still a long way to keep the insurance funds to get involved in the option investment.In this paper,the investment data of Chinese & Foreign insurance funds are compared,according to our own situation,taking 50 ETF stock option as an example,using VaR model and trading strategy to discuss the effect of hedging risk by investment options.Meanwhile,gives the suggestions from three aspects of insurance companies,regulatory authorities and option market.Generally speaking,insurance funds investment options are feasible,but there are still many areas for improvement in specific regulatory measures and trading systems.We believe in the near future,with the development of the options market and the improvement of relevant institutions,options,as a tool for risk management,are bound to occupy an important position in the investment of insurance funds. |
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