As the funds cannot be fully utilized, the huge fund balance is in a low-efficiency idle state. At the same time, the investment structure with too large a proportion of bank deposits and purchase of government bonds and too small a proportion of securities investment funds is not conducive to the diversification of investment risks of insurance funds and the establishment of an effective investment portfolio.
Third, there is a serious mismatch between insurance companies’ assets and liabilities.
of investment assets and liabilities to the policyholder, including the mismatch between the term of assets and liabilities, the mismatch between the expected rate of return on capital utilization and the policy interest rate, etc. The most basic requirement for bosnia and herzegovina businesses directory asset matching is to construct an asset structure to ensure that the cash inflow of assets corresponds to the cash outflow of liabilities at any time. If this correspondence cannot be achieved, there will be a risk of mismatch between assets and liabilities, resulting in difficulties in policy repayment or the impact on the expected return on assets.