Investment Regulation, Portfolio Allocation, and Investment Yield in the U.S. and China Insurance Industry

This article presents the comparisons of three aspects of insurer investments in the United States and China. For investment regulation, we summarize the allocation limits specified in the U.S. Investments of Insurers Model Act and update China's regulation to the 2014 version. For investment allocation, we show the year-by-year allocations to various investable assets from 2005 to 2013 of U.S. and Chinese insurance industries. Finally, for investment performance, we calculate yearly investment returns and discuss the rationale that contributed to the return fluctuation.