(1) security. 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.

(2) 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.

(3) 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.

Extended data:

Only in sports can capital increase in value. Insurance companies will use temporarily idle funds to increase profits, which is the inherent requirement of capital itself.

Due to future compensation and payment, insurance funds are in the form of money. Under the condition of commodity economy, there is the problem of inflation. If the insurance fund can not be used normally, it will not only be unable to obtain income, but also difficult to guarantee the preservation of value, which will inevitably affect the realization of the insurer's economic compensation function.

The fierce competition in the insurance market often leads to excess underwriting capacity and decreased underwriting profit. Insurance companies turn their attention to obtaining profits from the use of insurance funds and striving for investment profits. As a result of the use of insurance funds, the insurer gets an average profit, and the insured also enjoys the benefits of the use of insurance funds in the form of low rates.

Baidu encyclopedia-the use of insurance funds