Highlights
Rational use of insurance funds essential
(chinadaily.com.cn)
Updated: 2009-10-22 14:13
Insurance funds can be used not only to compensate for insurance companies' underwriting losses, but also to increase their profits to ensure the industry's sustained and rapid development, the Financial News reported, citing an official from the Chinese Academy of Social Sciences.
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"Asset liability management has always been the core of the use of insurance funds," Guo Jinlong, Assistant Director of the Institute of Finance under the academy, said. "Rational use of insurance funds directly impacts insurance companies' profitability, competitiveness, underwriting capacity and solvency."
At present, how to improve the domestic insurance capital in terms of asset liability management, investment structure, capital utilization's rate of return, insurance supervision, etc, to avoid the potential risk of a future payment gap has become a top concern in the insurance industry.
In a recent interview, Guo discussed the importance of insurance capital utilization to the insurance business and the current problems faced by the Chinese insurance industry, as well as root causes for these problems.
Amid intensified competition ...
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