Risk Analysis And Measurement Of Insurance Fund Real Estate Investment In China

In May 2018,insurance funds were approved to enter the long-term rental market,making the attention of insurance industry investors once again focused on the investment channel of real estate.Like other investment markets,the real estate market is also full of various risks.If risk management is not in place,the occurrence of risk events will have side effects on the solvency of insurance companies and damage the reputation of insurance companies.Correct understanding of the risks faced by insurance funds investing in real estate is a problem that needs to be discussed and resolved at the moment.In this paper,after analyzing the current situation of domestic insurance fund investment and the status quo of real estate investment,this paper analyzes several types of risks that insurance funds can invest in real estate and its forms of influence,and uses VaR value theory.The empirical analysis of the “market risk” which is worthy of attention is carried out.Through the calculation of the model,the conclusion that the insurance fund can effectively diversify the overall risk of the investment portfolio but at the same time its own risk contribution level is obtained.According to the empirical results,it is proposed that insurance funds investment in real estate needs to speed up the construction of a sound risk management and control mechanism,accelerate the training of talent teams and strengthen supervision.At the same time,we will look forward to the investment development of the domestic insurance industry in this market,and strive to give full play to the positive role of real estate investment in insurance companies and the entire industry under the premise of minimizing the possibility of risk occurrence.