Establishment of the mechanism of insurance invest

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Establishment of the mechanism of insurance investment

[Abstract] insurance investment is an important foundation for the development of the insurance industry, with the constant improvement of our financial markets, insurance and investment will be rapid development. This requires investment to establish an effective insurance mechanism to reduce risk and improve return on investment capital. This proposed investment in the organizational structure of insurance and risk control mechanism. First, the insurance investment objective need to establish an effective investment mechanism: The purpose of establishment of the mechanism insurance investment insurance investment is to increase income, reduce investment risks. Second, investment patterns and organizational structure of the insurance Category: Insurance There are three main modes of investment: investment model centralized, decentralized investment model, decentralized investment patterns. Third, China's insurance investment mode choice: from the actual situation of our country, separation of powers is an important investment patterns should be selected. Fourth, the organizational structure of the fund investment division: 1. Divided by the fund management company; 2. To divide the fund's investment style. Fifth, the insurance investment risk control: insurance investment risk control is mainly reflected in the prior risk control, a matter of risk control, risk control afterwards. insurance investment is an important foundation for the development of the insurance industry, with the constant improvement of our financial markets, insurance and investment will be rapid development. This requires investment to establish an effective insurance mechanism to reduce risk and improve return on investment capital. This proposed investment in the organizational structure of insurance and risk control mechanism.

an insurance investment objective need to establish an effective investment mechanism

mechanism is the so-called insurance investment insurance investment activities, operation mechanism and management system of the general, including insurance, within the investment organizational structure, the principles of investment decision, risk control methods. Mechanism established insurance investment insurance investment aimed at increasing income, reducing investment risk.
insurance companies underwriting business and investment business is a modern two important features of the insurance industry, including insurance and investment business has become a modern insurance company an important means of survival and development. On the one hand, the development of the insurance investment business, will expand the profitability of insurance companies to increase the solvency of insurance companies and business stability. Meanwhile, the insurance company to increase revenue, the insurance company will have the ability to reduce insurance rates, reduce the burden on the insured, the insurance companies to improve competitiveness. Without China's insurance industry as a basis for investment income, join WTO, it is very difficult in the insurance business with foreign insurance companies to price (rate) competition. On the other hand, the insurance investment business development and profitability of the business can make up for losses, to maintain the survival and development of the insurance company. Such as the 1987 British loss of the two insurance companies insurance for the 064 million pounds, respectively, and 1.08 million pounds, while the investment profit of 204 million pounds and 2.49 billion pounds, to break even after there is still a consolidated profit . From the recent features of the international insurance industry point of view, the insurance company's main income has been from the traditional gradual transfer of underwriting income as investment income, such as the U.S. property and casualty insurance business since 1978, underwriting losses occurred for 21 consecutive years, the main income comes from investment income.
funds insurance investment in China is low, less investment in tools to make the level of income insurance investment is very low, which limits the development of China's insurance industry and competitive ability. To promote the development of China's insurance industry, our government and the insurance departments are working to improve the investment environment, enrich and develop the insurance investment vehicle, reduce insurance investment restrictions. From the look in recent years, insurance investment greatly accelerated the pace of building in 1998, the insurance funds into the interbank market, in October 1999 with the Mason Fund to placing the insurance company, indicates that China's capital markets open to insurance companies. Now, some insurance companies allow the purchase of the Fund's total assets increased from 5% to 15%. The 100% investment-linked insurance can enter the capital market to buy investment fund. Can be expected, as economic conditions change, the capital market will continue to open to insurance companies, China's insurance investment will be greater development.
the insurance business is a debt, and therefore the use of insurance funds in addition to considering the return on investment, but also must ensure the security of investments. Therefore, the market opening, the increase in investment vehicles and investment continues to expand, the objective needs of the insurance company to further strengthen the construction of investment mechanism and improve the ability to resolve the risk, ensuring security and insurance funds to achieve the coordination of investment income.

Second, insurance, investment patterns and organizational structure classification

insurance investment insurance investment model and organizational structure are closely linked, that is, some insurance and investment patterns must be established The organizational structure suited to the investment. Insurance Investments and the mainly three types: centralized investment model, diversification model, decentralized investment patterns.
1. Centralized investment patterns. Centralized investment model is a high concentration of the corresponding investment decisions, that is a unified decision-making, centralized transaction. This investment pattern of investment is characterized by a single, simple and rapid decision-making mechanism, easy-to-unified management. However, the excessive concentration of investment decisions, making decisions at increased risk.
centralized investment model for less investment products, investment in small markets. But more investment products, funds a large scale, this model can not collaborate with, the scale of investment.
and centralized investment structure corresponding to the mode is Investment in China are generally taken at this stage that the insurance organization.
2. Diversification model. Investment diversification model is centralized model as opposed to a model of investment decision-making power is entirely responsible for performing various functions, namely, the various functional departments to decide based on market conditions the number of investment vehicles and investment. The advantages of this model to avoid excessive concentration of decision-making arising from the decision-making risk. However, excessive investment in decentralized decision-making and increase the difficulty of management. This pattern corresponds with the organizational structure is flat structural framework.
3. Decentralized investment patterns. This is an investment patterns between centralized and decentralized investment patterns between a investment. Day to day investment decisions exercised by the various functional departments. Headquarters is responsible for fund management coordination between the various management functions, and only in some major projects for investment decisions. This pattern of investment is diversified, that the formation of the headquarters and the functions of two-level investment decision-making body. This pattern corresponds with the organizational structure for the division or business unit over the organizational structure of the system.
Third, the choice of insurance investment mode choice
investment model that takes into consideration the current situation and future development of speed, take the appropriate investment in advanced mode. From the actual situation of our country, separation of powers is an important investment patterns should be selected. Mainly based on the following reasons:
First, China's insurance industry determines the size of the insurance investment funds will continue to expand. From the depth and density of Insurance, in 1998 China's insurance penetration was 1.4%, the density is 100 yuan. Some developed countries over the same period of insurance a depth of 10%, density of more than 5,000 U.S. dollars. Developing countries such as India's insurance penetration is 5%, the density is 100 dollars. Shows that China's insurance industry is still in its early stage of development. With China's rapid economic development, insurance, growing economy, China's insurance industry will be greatly developed, we can use the funds will be more and more.
Second, the gradual improvement of the financial markets, investment vehicles continue to increase. China's securities market, foreign exchange market, the real estate market continues to develop, such as government debt was 189.8 billion yuan in 1997, 1998 and 299.3 billion yuan, 381.7 billion yuan in 1999, the average growth rate of 43%. Although China's securities investment fund is only 36, but under the guidance of national policy, the upcoming open-end fund, targeted to raise funds Insurance Investment may also be another option. These are investments for insurance multi-level investment. At the same time a variety of laws, regulations and constantly improve the investment structure has gradually become more reasonable, so that the external environment of the insurance investment has been continually improved.
In addition, investment restrictions on insurance continues to decline. WTO accession, China's financial market, greatly accelerate the construction speed, large-scale investment for insurance which provides a good condition. It also promoted the investment model of China's insurance as soon as possible mode of operation with the international standards.
Therefore, the insurance investment expansion, diversification of investment instruments investment objective of the insurance decision-making, professional division of labor has put forward higher requirements. But the decentralized decision-making and professional division of labor must be based on the unified management of a coordinated basis. Thus, to take decentralized investment model is a reasonable choice.

Fourth, the organizational structure of the fund investment division of

insurance investment business system is the basic structure of the division of division is mainly based on the characteristics of the business to carry out. Such as bonds, foreign exchange, industrial investments. Because insurance funds to enter the capital markets later, the division of the fund investment business, domestic insurance companies there are some differences. Mainly by way of the existing two, one is centralized investment mode, which set up a special fund investment arm, be responsible for investing the fund. In the case of an increasing number of funds, the biggest problem is that this model is difficult to conduct in-depth analysis of the Fund. The other is the mode of diversification, the establishment of the fund investment division multiple groups,[link widoczny dla zalogowanych], usually 36 investment groups, each responsible for a fund investment. This model, although the fund can hold more in-depth, but need more, and by meticulous management and coordination will increase the difficulty. To avoid the shortcomings of these two models, based on the Fund's investment characteristics