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Study on the Interest Rate Risk of Life Insurance in China
Author: XieFang
Tutor: GaoShuTang
School: Lanzhou Commercial College
Course: Finance
Keywords: Life insurance companies Interest rate risk Risk Measurement Strategy selection
CLC: F842.6
Type: Master's thesis
Year: 2009
Downloads: 267
Quote: 1
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Abstract
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Since 2007 , the financial crisis sweeping the globe , the world economy into a downturn , guard against financial risks has become a worldwide topic , more and more attention has been paid . Life insurance industry as a business risk , not only there is the risk of the same and other industries , but also in the course of business , due to the special nature of the product pricing mechanism , liabilities huge amount and long-term policy embedded option features , determines the interest rate factor runs through the whole process of the life insurance business , interest rate risk is undoubtedly one of the biggest risk of the life insurance industry . The sound operation of the insurance companies is directly related to the stability of social stability , economic development and people's lives . Especially with the reform of China 's interest rate market , the life insurance industry will inevitably face caused due to frequent fluctuations in interest rates and the impact of interest rate risk , the potential threat caused by fluctuations in interest rates will become more apparent . Therefore , conduct in-depth research and quantitative analysis of interest rate risk in the status quo of China 's life insurance industry and its generation mechanism , has certain theoretical significance for the life insurance industry effectively guard against interest rate risk , and ensure the sustained , stable and healthy development of the life insurance industry , and enhance competitiveness in international markets and practical significance. Firstly, the use of static analysis methods start from the life insurance company's operating characteristics , these characteristics of the life insurance companies determine the interest rate factor runs through the whole process in the life insurance business ; Second, the analysis of the plight of China's life insurance companies currently facing interest rates and Empirical Analysis the formation mechanism of interest rate risk , analyzes the status quo of China's life insurance industry faces interest rate risk and the deep-seated reasons behind ; then, the interest rate risk of the life insurance industry , various metrics of the principle of the use of the tool , advantages and disadvantages of simple exposition , and from life insurance products actuarial pricing starting focus on the concrete application of VaR measure of interest rate risk in China's life insurance companies ; Finally, the angle from life insurance products and the company's internal management perspective , China's life insurance company to respond to the interest rate risk strategy selection . Also proposed on this basis , with the gradual improvement of the country's financial market , some strategies have yet to be explored methods . This article aims to feasibility and operability respond to interest rate risk to the life insurance company in China to provide an effective response .
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CLC: > Economic > Fiscal, monetary > Insurance > China's insurance industry > Various types of insurance
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