Insurance funds cannot be used in the following areas:
1. Speculative activities: Insurance funds cannot be invested in high-risk, high-yield speculative activities, such as stocks, futures, and options. etc. to avoid the impact on the solvency of insurance companies due to market fluctuations.
2. Non-insurance business: According to the insurance law, insurance companies should focus on insurance business and are not allowed to engage in non-insurance business unrelated to insurance business, such as real estate, manufacturing, etc.
3. Related transactions: Insurance companies are not allowed to use insurance funds to conduct improper transactions with themselves or their related parties to avoid harming the interests of the insured.
4. Over-investment: Insurance funds cannot be over-invested in the same industry or enterprise to avoid the impact on the solvency of the insurance company due to industry or enterprise operating risks.
5. Illegal activities: Insurance funds shall not be used for any illegal activities, such as money laundering, terrorist financing, etc.
6. Mismatch between long-term assets and short-term liabilities: When using insurance funds, insurance companies should maintain a match between long-term assets and short-term liabilities to avoid affecting the solvency of the insurance company due to the mismatch in the maturity of assets and liabilities. .
7. Non-public market investment: Insurance funds are generally not allowed to be invested in non-public markets, such as private equity, venture capital, etc., in order to reduce investment risks.
8. Other investment activities prohibited by national laws and regulations: The use of insurance funds shall comply with the provisions of national laws, regulations and relevant policies, and investment activities shall not be conducted in violation of national laws and regulations.
In short, the use of insurance funds should follow the principles of safety, liquidity and profitability, ensure the safety and reasonable returns of insurance funds, and effectively safeguard the interests of the insured.