What is the difference between a big insurance company and a small insurance company?

The difference between big insurance companies and small insurance companies is mainly reflected in the fact that big insurance companies have good reputation and relatively perfect service system, while small insurance companies have low visibility and imperfect service system. Therefore, the insurance products of large insurance companies have a better reputation and can enjoy more thoughtful services. However, when buying insurance, the size of the insurance company is not the only criterion for buying products. More importantly, choose products whose insurance clauses meet the actual insurance needs.

I. Insurance rates

1. The premium rate is the ratio of the premium to the insured amount. Insurance rate is also called insurance price. Usually expressed by the insurance premium payable per 100 yuan or per 1000 yuan.

2. Insurance companies use accurate algorithms to quantify risks. Insurance companies estimate future losses (predetermined loss rates) by preparing data, and usually use reasonable approximations. Actuaries use statistics and probability to simulate and analyze risk distribution. Insurers use this scientific principle and attach certain conditions to determine the insurance premium rate. These additional conditions include predetermined return on investment, predetermined policy interest rate, predetermined operating expenses and taxes. The additional conditions of life insurance companies mainly include the predetermined mortality rate.

The predetermined interest rate that the insurance company must pay will be compared with the borrowing rate in the market. According to this comparison, many insurance companies can't win the predetermined interest rate, but prefer to keep it lower than the interest rate borrowed from other places. Otherwise, insurance companies will not return the owner's capital, so they will borrow money from other places to get a return on investment at market prices.

Two. Insurable interest

1. Insurable interest refers to the legitimate rights and interests of the insured in the subject matter insured. Usually, the insured will suffer economic losses due to the damage or loss of the subject matter insured, and gain benefits due to the preservation of the subject matter insured. Insurable interest can only be established if it is legally recognized and economically determined rather than expected. Generally speaking, the insurance interest of property insurance exists when the insurance accident occurs, and the losses caused by the insurance accident can be compensated; When signing an insurance contract, the insurance interest of life insurance must exist to prevent moral hazard.

2. Take life insurance as an example, the insured has unlimited insurable rights for himself and his spouse. In some countries and regions, if the insured and the insured are related by blood, they can also constitute insurance rights and interests. In addition, creditors also have insurance interests for debtors who have not paid off their loans.