(A) the principle of safety
(B) the principle of profitability
(C) the principle of liquidity
The above principles are interrelated and mutually restrictive. Income is the goal of insurance funds, but it often conflicts with safety and liquidity. Because the function of organizing economic compensation is the primary function of insurance companies, and the function of financing is the second, the particularity of insurance companies' operation determines that the use of funds should first ensure safety and liquidity, and on this basis, pursue income and increase profits. 1. Buy bonds
invest in stocks
Invest in real estate
4. Loans
save money
In addition to the above application form, insurance funds can also be used to invest in various funds, interbank lending, gold and foreign exchange, etc. Because the insurance management authorities in different countries have different ways to manage the assets of insurance enterprises, the asset structure of insurance enterprises in different countries is also different, so it is difficult to judge which is more reasonable and can only be explained by the situation of each country and region.
Countries and regions strictly control the proportion of various investment methods in total assets, and the legislative orientation focuses on ensuring the safety and liquidity of insurance funds to ensure the legitimate rights and interests of the insured, and on this basis, pursue the efficiency of fund utilization. It is also stipulated in Article 105 of the Insurance Law of People's Republic of China (PRC) and Articles 80 and 8 1 of the Regulations on the Administration of Insurance Companies. (a) to promote insurance business as a means of accumulating funds, but also to achieve the purpose of organizing economic compensation.
(2) Relieve the contradiction between insurance premium rate and profit.
(3) Promoting insurance companies to actively develop life insurance business.
In a word, the macro effect of mutual penetration and interactive development of the two basic businesses of insurance companies is embodied in the following aspects: (1) Economic units and individuals can get as much insurance protection as possible with the minimum premium expenditure; (2) Accumulate insurance funds as much as possible and turn them into production and construction funds. As a result, the unique function of insurance companies to organize economic compensation can be fully exerted.