A Study On Insurance Funds Investment Of China Under The New Situation

Since 2012,the insurance industry has been actively promoting market reforms of insurance funds investment and has achieved good results.By the end of September 2017,the balance of insurance funds was up 9.38%for the year,reaching 146471.73 billion yuan.With the rapid growth of investment scale,substantial improvement of investment capability,continuous optimization of asset structure,steady increase of investment income,and the overall asset risk under control,insurance funds investment has basically completed the overall connection with real economy,and insurance funds have become a significant force for China's economic development.By using study methods including document research,case study,investigation and interview,induction and deduction,etc.,the essay makes a systematic analysis of the affecting factors,characteristics and disadvantages concerning the insurance funds investment of China,and by combining the foreign successful experience of insurance funds investment,provides specific advice on optimization methods,and proposes issues to be further solved.Under the current regulatory background,the general insurance funds investment will enjoy a major policy regulation dividend while the fund investment pattern and strategy will gradually change to cope with the new regulatory requirements after the implementation of C-ROSS.Judging from the perspective of macro economy,the cumulated influence of both demand side and supply side creates great challenge for insurance funds investment.However,from the angle of consumer demands,the market demand for insurance products will keep on growing along with the rapid increase of household wealth,the deepening of aging trend,the establishment and improvement of pension system,which will bring forward new opportunities for the insurance industry.From the perspective of competition environment,insurance industry is facing with pressure of intensifying competition from both inside and outside.Considering the development of capital market,China is still in a relatively low level and has limited capital investment tools,which proposes higher requirements for the insurers' rate of return on investment and management of asset liability matching.The main characteristics of the current insurance funds investment in China include increasing scale of insurance assets,diversifying investment channels,close relation between investment income and capital market fluctuation,insurance asset management companies having dominance in the insurance funds investment,and frequent acquisition in the stock market,etc.At the meantime,there are also deficiencies to be solved,for instance,the investment channel needs to be further expanded and the insurance funds investment needs to find its balance while many potential risks still exist and the rate of return is relatively low.In Comparison,the foreign leading insurance companies have rich successful experience in insurance funds investment,and their keys to success in asset allocation,organizational structure and advanced practice have important reference value for the insurance funds investment of China.Referring to the international advanced experience,the strategy optimization of insurance funds investment of China can be achieved in three aspects.Firstly,the strategic plan should include directional long-term layout.Secondly,cope with the situation of low interest rate by adjusting asset allocation.And lastly,improve risk management capability.