What are the modes of operation of insurance funds?

Take a look at the following online excerpts: First, the current operation mode of China's pension insurance fund.

In our country, the existing practice of using endowment insurance fund is to deposit it in banks or other financial institutions and charge bank interest to realize its appreciation. This method has low risk and stable interest income, and the bank's current interest rate is the rate of return of insurance funds. Due to the low interest rate of banks for a long time, and the influence of inflation and currency depreciation, the endowment insurance fund can not realize effective appreciation, and sometimes it is even difficult to maintain its value. This low-risk and low-return approach should not be the only choice for pension funds.

At present, the China Municipal Government has basically liberalized the investment scope of pension funds, allowing them to enter the market within the proportion permitted by law and according to legal procedures. How to realize the appreciation of fund assets under the premise of ensuring the security and liquidity of fund assets is the core problem in the application of endowment insurance funds at present. Adopting the trust system to promote the endowment insurance fund to enter the capital market and adopting the management mode of open-end fund can successfully realize the preservation and appreciation of endowment insurance fund, which is a feasible way. Its operation mode embodies the complex and orderly economic relationship among fund investors (beneficiaries), fund managers (trustees) and fund custodians.

Second, the adoption of trust model is conducive to the preservation and appreciation of pension funds.

Endowment insurance is called "life-saving money". How to manage this fund well is related to the vital interests of every worker and the success or failure of social insurance system reform. At present, China's pension insurance management institutions are mostly administrative organs and institutions, lacking specialized management talents and skills, and it is generally difficult to maintain and increase value. Judging from the situation abroad, although the pension fund management models in various countries have government-led investment and operation systems, it is customary to entrust independent institutions to manage and use funds. This independent fund management institution may be an independent department of the government, but it is more a professional fund company or investment bank with legal personality. The reason why the fund management is entrusted to an independent institution is that countries generally emphasize the separation of government and capital, and because the management and application of the fund require considerable experience and special skills, it is more capable and effective to operate by a professional and independent fund operating institution. As a trustee, independent institutions not only have full rights to manage and operate funds, but also have a very strict responsibility to preserve the value of funds.

As a professional financial institution, trust companies have good management ability and experience, which can guarantee the income of pension funds. At the same time, the trust property is independent, and once the pension fund is delivered to the trust, it will not be affected by the deterioration of the financial situation of the trust company and the client, thus ensuring the safety of the pension fund.