Research On The Development Of Alternative Investment In Insurance Funds In China

The global economic situation began to show signs of improvement in 2017,and the investment risks faced by investors are also decreasing.The data shows that the current Volatility Index(VIX)has fallen to its lowest level since 1996.The low risk rate brings a high level of asset valuation,which makes the financial asset industry face the real challenge of obtaining excess returns.The long-term low interest rate trend makes asset prices more vulnerable to the economic environment and financial policies,and long-term quality assets can avoid such risks to some extent.In the context of bad market conditions,many insurance companies have begun to actively deploy alternative investments,which on the one hand guarantees a higher rate of return and can have a better exit mechanism in market fluctuations;on the other hand,the regulatory layer also has certain Policy support.Alternative investments generally include real estate investment,infrastructure debt investment,bulk commodities,long-term equity and other major assets.The China Insurance Regulatory Commission issued the "Measures for the Management of Insurance Funds Investment Equity" in October 2018,and the "Measures" canceled the investment of insurance funds.Industry-wide restrictions,loosening the qualification requirements for equity investment,expanding the scope of investment targets,and relaxing the investment ratio requirements.The relaxation of equity investment can partially alleviate the concern of the insurance company's investment terminal when the long-end interest rate curve declines and the secondary market fluctuates greatly.This also means that the regulators further relax the constraints of alternative funds for insurance funds.Alternative investment is of great significance to the operation of insurance companies,especially the expansion of insurance funds investment channels,investment diversification and risk diversification.As an effective supplement to the traditional asset investment of insurance companies,it has added more portfolio options for insurance investment.This paper selects Ping An Group's alternative investment business as an example,and uses the combination of theoretical basis and case to explain the development and application ofalternative investment of insurance funds.The article first systematically introduces the development of alternative investment of insurance funds in China,combined with alternative investment typical.The introduction of the product raises the problems encountered in the alternative investment in the stage of insurance;nextly,Ping An Group is used as an example to analyze the situation of the alternative investment products and risk-return of Ping An Group in detail,using the classic mean-variance model of Markowitz.Optimized investment portfolio,from the theory to prove the unique advantages of alternative investment,and summed up the experience of Ping An Group's alternative investment;finally combined with the problems of alternative investment and Ping An Group's investment experience,from the micro-macro aspect of China's insurance funds alternative investment Suggestions for development: For example,to improve the dynamic monitoring system for alternative investments with the second generation as the core,and to establish an alternative investment business management system within the insurance company,it is expected to provide reference for regulators and insurance companies.