Bond is a form of national or enterprise credit. According to the different issuers, it can be divided into public bonds and corporate bonds. Insurance companies can invest in long-term bonds and short-term bonds according to the characteristics of different businesses.
2. stocks
Stocks are generally divided into ordinary shares and preferred shares. Preferred stock has the characteristics of both bond and common stock, with fixed yield and less risk than common stock, and is more suitable for insurance investment.
3. Real estate
Real estate investment is very common in the insurance industry of various countries. The advantage is that it is easy to manage and control asset projects, with good profitability and safety, but poor liquidity, which is strictly restricted by insurance laws in various countries.
4. Loans
Loans issued by insurance companies are generally mortgage loans, that is, loans secured by real estate, securities or life insurance policies, which are relatively safe.
5. Bank deposits
Bank deposits are the funds that insurance companies deposit in banks to obtain interest income. The bank deposit takes the bank as the investment intermediary of insurance funds, and the insurance company bears less risks and higher security, but the income is relatively low, so it can't be a real investment profit.
6. Investment funds
Investment fund refers to a kind of collective investment method which collects the funds of unspecified majority of investors with the same investment purpose and entrusts professional financial investment institutions to make portfolio investment, so as to disperse and reduce risks and share benefits.
7. Borrowing funds
Capital lending refers to short-term financing between financial institutions with legal personality, or between financial institutions with legal personality and financial institutions without legal personality authorized by legal personality. Capital lending includes capital borrowing and capital lending.
8. Financial derivatives
Financial derivatives are emerging products with the development of financial markets, mainly including futures, options and swaps. Futures and options can be used to offset the risks of existing asset portfolios and lock in future premium income and current return on investment.
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Safe. Safety principle is the first principle in the use of insurance funds. Because the insurance fund is the insurer's debt to all the insured. In terms of quantity, the total amount of insurance funds should be consistent with the total amount of future loss compensation and insurance compensation. If it cannot be returned safely, it will definitely affect the economic compensation ability of insurance companies. In order to ensure the safety of the use of insurance funds, the insurer must make a good investment forecast, choose high-security investment projects, spread risks in small amounts, short-term and forms, and increase the safety of investment.
Profitability. The main purpose of the use of insurance funds is to make profits. Profitability can bring benefits to insurance companies and enhance their solvency. This requires the use of insurance funds to choose efficient investment projects, and strive to achieve maximum returns within a certain risk limit.
Liquidity insurance has the function of economic compensation, and the occurrence of insurance accidents is random, which requires the use of insurance funds to maintain sufficient liquidity to meet the needs of insurance compensation and payment at any time. Insurance companies should choose appropriate investment projects according to the different requirements of different businesses on the liquidity of capital utilization.
People's Daily Online-China Insurance Regulatory Commission issued new rules for insurance asset management companies to clarify the sources of funds.