Insurance Investment

What is an insurance investment
The principle of insurance investment
Investment in the form of insurance
The status of domestic and foreign insurance investment
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Brief Introduction
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insurance investment [Edit this paragraph] What is the insurance investment
Insurance investment refers to financial compensation insurance companies in the organization process, the accumulation of a variety of insurance funds to be used, capital value-added activities.
Insurance companies may use the insurance money is from the capital, the accumulation of reserves and other capital component. The use of a large number of temporarily idle reserve funds of insurance an important part of the movement. Investment can increase revenue, strengthen payment capabilities to enable insurance funds to enter a virtuous circle. [Edit this paragraph] the principle of insurance investment
Insurance investment insurance investment principle is the basis. As early as 1862, British economist Bailey (AABailey) put forward the five principles of life insurance investments, namely: security; the highest real rate of return; part of the funds invested in the securities quickly realized; another part of the funds may invest in securities can not be quickly realized; investment should be conducive to the development of life insurance.
As the capitalist economic development and diversification of financial instruments, as well as increased competition in the insurance industry, insurance and investment risks, profitability also improved, investment in a wider range of options. 1948 British actuary Pegler (JBPegler) amended Bailey's view, put forward four basic principles of life insurance investment: the highest expected return; investment should be spread as far as possible; investment structure and diversity; investment in economic and social benefits should be equal importance.
Theorists generally believed that the insurance investment has three main principles: safety; profitability; liquidity.
1, security policy
Insurance companies may use the funds, in addition to capital, the main kinds of insurance reserves, they are liabilities on the balance sheet items, the bearer of the insurance credit. Therefore, the insurance investment should be based on safety as the first condition. Security, means that funds are on schedule to recover, profits or interest can be shown with recovery. In order to ensure the safety of use of funds, you must choose a high security projects. In order to reduce risk, to diversify their portfolios.
2, the principle of profitability
The purpose of insurance investment is to improve their own economic benefit, so that investment income has become an important source of income of insurance companies to enhance payment capacity, lower rates and expand business. However, in investment, income and risk with increasing yield high, risks are also great, which requires insurance, investments, to limit the risk of a certain extent, to achieve maximum benefits.
3, fluidity principle
Insurance funds for the compensation payment, subject to accidental regularities. Thus, requiring an insurer to invest in without loss of value under the premise of the assets can be translated into cash immediately, pay compensation or pay insurance. Insurance investment to design a variety of ways to find a variety of channels, according to an appropriate proportion of investment, from the quantitative aspect is limited. Insurance according to the different characteristics, to choose our direction. If life insurance is generally long-term contracts, insurance and the amount of payment are more fixed, liquidity requirements may be lower. Foreign investment in life insurance funds a substantial part of a long-term real estate mortgages. Property-casualty and liability insurance, generally short-term, claims quickly and big changes in rates of payment should be special emphasis on the principle of liquidity. Foreign property and liability insurance capital investment is a significant part of the commercial paper, short-term bonds.
In China, the insurance company use of funds must be sound, follow the principle of security, and to ensure that increasing the value of the assets. [Edit this paragraph] in the form of insurance investment
Insurance investment of insurance capital in the form of the insurance companies which invested in specific projects. A reasonable form of investment, on the one hand can maintain financial stability and insurance companies paid the reliability, timeliness; the other hand, to avoid over-concentration of capital and thus affect the industrial structure is reasonable.
In general, the insurance funds to be invested in:
1, PI
There are two kinds of securities:
1) bond. Including government bonds, corporate bonds and financial bonds. Generally speaking, less risky to invest in bonds, especially government bonds. Invest in corporate bonds, special emphasis on the company's credit and earnings reliability.