CHENGDU, Jan 17 (NBD) -- Investment-oriented property insurance functions as both an investment tool and an insurance tool. But it is such two-fold business nature that brings dual risks to insurers which manage non-life investment products.

Wang Xujin, the professor of Insurance Department of Beijing Technology and Business University, told NBD, the investment-oriented property insurance is greatly subject to fluctuations in the capital market. The overall revenue of the insurance companies is fluctuating along with the capital market.

Wang added, except the external risks of capital market, the capability of fund application and possible insufficient cash flow may as well cause corresponding internal risks to the insurers.

According to Wang, the above mentioned reasons make China's property insurance institutions take a prudent attitude towards investment-oriented property insurance.

Email: gaohan@nbd.com.cn