1. Bonds Bonds are a form of national or corporate credit.

According to different issuers, they are divided into public bonds and corporate bonds.

Insurance companies can invest in long-term bonds and short-term bonds based on the characteristics of different businesses.

2. Stocks Stocks are generally divided into ordinary shares and preferred shares.

Preferred stocks have the characteristics of both bonds and common stocks, with a fixed rate of return and less risk than common stocks, making them more suitable for insurance investments.

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, and has good profitability and safety. However, it has poor liquidity, so the insurance laws of various countries strictly restrict it.

4. Loans issued by loan insurers 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 funds that insurance companies deposit in banks to obtain interest income.

Bank deposits use banks as investment intermediaries for insurance funds. Insurance companies bear smaller risks and are safer, but their returns are relatively low. Under normal circumstances, they cannot become real investment profits.

6. Investment Fund Investment fund refers to the pooling of funds from an unspecified majority of investors with the same investment purpose, and entrusting professional financial investment institutions to conduct portfolio investments to achieve risk dispersion and reduction, and to share returns together.

A form of collective investment.

7. Fund lending Fund lending refers to short-term financing between financial institutions with legal person qualifications or between financial institutions with legal person qualifications and unincorporated financial institutions authorized by legal persons.

Fund lending includes funds lending in and funds lending out.

8. Financial derivatives Financial derivatives are emerging products that have emerged with the development of financial markets, mainly including futures, options, swaps, etc.

Futures and options can be used to offset the risks of existing asset portfolios and lock in future premium income and current returns on investments.

Extended information: Security.

The principle of safety is the primary principle for the use of insurance funds.

Because the insurance fund is the liability of the insurer to all insured persons.

From a quantitative point of view, the total amount of insurance funds should be consistent with the total amount of future loss compensation and insurance benefits. 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, insurers must make good investment forecasts, choose investment projects with higher security, and diversify risks with small amounts, short-term, and diversified forms to increase investment security.

Profitability.

The main purpose of using insurance funds is to make profits.

Profitability can bring corporate benefits to insurers and enhance the solvency of insurance companies.

This requires the use of insurance funds to select high-efficiency investment projects and strive to maximize returns within certain risk limits.

fluidity.

Insurance has the function of economic compensation, and the occurrence of insured accidents is random, which requires the use of insurance funds to maintain sufficient liquidity to meet the needs of insurance compensation and benefits at any time.

Insurers should select appropriate investment projects based on the different requirements for liquidity of funds used by different businesses.