Insurance company asset-liability management

Author: Wang Haiyan
Publisher:
Publish Date: 2004-08-01
Features: The content of this book can be broadly divided into three parts. First, the first three chapters provide an introductory overview of the role of asset-liability management in the management of insurance companies, the development of asset-liability management theory, and the connotation of the concept itself, particularly clarifying the relationship between asset-liability management, risk management, and solvency management. Second, the content from Chapter 4 to Chapter 9 focuses on elaborating the theoretical foundation, methods, and applications of asset-liability management technical models in insurance companies. The technical applications primarily cover three aspects: avoiding interest rate risk for insurance companies, optimizing the structure of asset-liability portfolios, and determining risk capital requirements. These three aspects basically encompass the main technical work of asset-liability management in insurance companies, summarizing various asset-liability management techniques studied and applied in academia and practice into four types: immunization techniques, mean-variance analysis techniques, value-at-risk techniques, and dynamic techniques. Among these, dynamic techniques are essentially supplementary and auxiliary to the first three. Finally, Chapters 10 and 11 focus on discussing the organizational system architecture around asset-liability management. By analyzing the principles and objectives of organizational design and the drawbacks of decision-making in traditional insurance companies, they further clarify that asset-liability management at the management level includes four aspects: organizational structure, decision-making processes, information communication, and incentive and constraint mechanisms.