The Study Of The Investment Of Insurance Capital In China Under The Background Of "C-ROSS"

After 40 years of ups and downs,the development of China's insurance market is in full swing and competition is becoming increasingly fierce.The scale of insurance fund assets has exceeded 16 trillion yuan.The use of insurance funds is one of the most important wheels driving insurance companies' advancement.Under the current background of the new economic normality of asset shortages,the use of insurance funds is under tremendous pressure,and insurance companies' investment styles are becoming increasingly aggressive.Fortunately,after a one-year transition period,China's insurance industry officially entered the “C-ROSS” era in 2016.Risk-oriented "C-ROSS" system will more scientifically quantify a series of risks faced by insurance companies,and require that risk appetites be incorporated into companies' asset-liability management,it puts forward higher requirements for the use of insurance funds and promotes insurance companies to establish a more comprehensive risk management system.The study of this paper based on “C-ROSS”,analyzing the present situation of insurance funds application,the existing problems and the impact of the new system by organizing the relevant data.The current rate of return on China's insurance funds is low and unstable,it is important and essential to adjust the insurance fund investment structure.This paper establishes an optimization model that is suitable for investment in insurance funds under multiple objectives of income-risk and minimum capital occupation,and designs a suitable genetic algorithm based on the characteristics of the model.By simulating specific numerical value founding that the proportion of fixed income asset and equity is very different under different levels of risk appetite,while alternative investments have a stable percentage especially real estate assets because of it's better income and lower risk.When the requiremenet of comprehensive solvencys become higher,the proportion of equity investments declined,while fixed-income investments increased,which further confirming that “C-ROSS” influenced on the capital allocation structure.Under the condition of meeting the same minimum capital occupation,the return rate of simulation optimization is much higher than the actual level.From the perspective of the actual situation of the insurance market,the proportion of equity investment still has a big space for adjustment.