A Differentiated Analysis Of The Impact Of Real Estate Investment On The Investment Income Of Property And Life Insurance Companies

With the gradual liberalization of insurance investment policies,real estate investment has become an important part of insurance investment portfolios and has become an important source of insurance investment income.The life insurance company's insurance funds have different investment requirements,investment methods,and investment tools due to different sources,nature,and quantities of funds,and there are differences in their investment strategies.This paper mainly explores the impact of real estate investment that affects property insurance companies and life insurance companies on the differential effect of their overall investment income,with a view to making effective recommendations for real estate investment of life insurance companies.Theoretically,this article considers that real estate investment,the characteristics of insurance funds and the operating characteristics of insurance companies jointly determine the real estate investment behavior of insurance companies.Further exploring the difference between the property insurance and life insurance companies brings about the differences in the concepts and models of the two types of insurance companies in real estate investment.In the international context,this paper analyzes the differences in the supervision and practice of the real estate insurance insurance funds investment real estate that are representative of the United States and some OECD member countries.In the empirical part,this article selects 20 insurance companies with top 10 insurance premiums in China in 2016.Using the panel data from 2010 to 2016,we choose insurance investment income as an explanatory variable,and investment real estate as an alternative variable to real estate investment.As explanatory variables,trading financial assets,long-term equity investments,time deposits,held-to-maturity investments,available-for-sale financial assets,etc.,as control variables,panel data regressions were conducted on life insurers and property insurers,respectively,and unit root inspection data were used.After the stability,the Hausman test was used to explain the structural fixed effect model of the life insurance company,and to construct a random effect model of the property insurer company.The regression results show that investment real estate has a positive effect on the income from life insurance investment,while the investment real estate company's investment real estate has a more significant impact on the investment income of property insurance companies.And according to this,China's production of life insurance companies to raise investment income and put forward corresponding countermeasures and suggestions.