The impact of financial reform on the development of the insurance industry

Insurance funds can neither be used by the treasury, nor by the bank, but only by insurance companies operating in accordance with the principle of financialization. It is economically rational for the financialized insurance industry to independently operate the financing business of insurance funds. Looking back at the historical process of China's economic development, especially under the impetus of the current economic reform, it also has a realistic inevitability.

The so-called financialization of the insurance industry refers to the liability and asset business of the insurance industry, which is uniquely interrelated and restricted. Roughly speaking, direct implementation of social security and economic compensation; The functional business, that is, the collection of premiums, the payment of insurance money or other indemnities, is its liability business, and the use of the accumulation of the form of debt business** to carry out a series of social financing activities can be regarded as asset business. The financialization of the insurance industry is the product of the organic combination and mutual promotion of the two businesses, and in fact, this relationship lies in the business activities of the insurance industry itself.

By collecting premiums, insurance companies have accumulated and established strong insurance** to provide timely protection in the event of natural disasters and unexpected losses, and play their role as financial compensation. At the same time, the characteristics of insurance funds themselves determine that insurance companies can use a part of the insurance funds to carry out asset business, participate in the operation of social funds in the process of reproduction, and realize the transformation of liability business into asset business, and the investment and use of insurance funds can not only meet the needs of social reproduction, but also increase the profit income of insurance companies and expand their own financial strength. This is of great significance to the enrichment of insurance companies, the development of business, and the improvement of credit, all of which will directly and indirectly promote the further development of the insurance liability industry on a broader basis.

In foreign countries, the use of insurance funds has become the lifeline of insurance operations. For example, in the United Kingdom, "in 1984, the market premium income of British companies was 28,527 billion pounds, but the investment** was as high as 144,630 million pounds, more than five times the premium; Among them, the life insurance premium for that year was 14,212 billion pounds, the life insurance investment** was 117.9 billion pounds, and the investment** was 26,653 billion pounds, which was 1,8 times the premium, and the total investment income for that year was 9,627 billion pounds, of which the life insurance investment income was 48.4 billion pounds, and the non-life insurance investment income was 2,142 billion pounds. "Theoretically and practically, we can both draw conclusions:

The liability business is the economic basis for the emergence and existence of the insurance industry, while the asset business is the basic evidence for the development and growth of the insurance business, both of which are indispensable.

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