For example, according to Article 90 and Article 9 1 of China's Insurance Law:
Article 90
Where an insurance company is in any of the circumstances specified in Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China, with the consent of the the State Council Insurance Regulatory Authority, the insurance company or its creditors may apply to the people's court for reorganization, reconciliation or bankruptcy liquidation according to law; The State Council insurance supervision and administration institution may also apply to the people's court for reorganization or bankruptcy liquidation of the insurance company according to law.
Article 91
After paying off bankruptcy expenses and beneficial debts in priority, the bankrupt property shall be paid off in the following order: (1) Wages, medical care, disability allowance and pension expenses owed to employees, basic old-age insurance and basic medical insurance expenses owed to employees' personal accounts, and compensation payable to employees according to laws and administrative regulations; (2) Compensation or payment of insurance benefits; (3) Social insurance premiums and taxes owed by insurance companies other than those specified in Item (1); (4) Ordinary bankruptcy claims. If the bankruptcy property is insufficient to pay off the repayment requirements in the same order, it shall be distributed in proportion. The wages of directors, supervisors and senior managers of bankruptcy insurance companies shall be calculated according to the average wages of employees of the company.
Insurance companies will go bankrupt, which is stipulated by law. However, if the actual operation is different, because insurance is related to people's livelihood, social security, stability and other issues, in actual operation, even if the insurance company encounters financial crisis, the state will generally participate in shares, acquisitions or mergers and acquisitions, and will not let it go bankrupt.
The most typical example is the financial turmoil in 2008, when many financial institutions were in economic crisis, such as Lehman, and even AIG, the world's largest insurance company (and a former long-term sponsor of Manchester United), was in crisis. At that time, the US government had to fend for itself for other financial institutions. For example, Lehman went bankrupt directly, but only saved AIG with 85 billion yuan, because it is an insurance company that protects people's livelihood.
Therefore, as far as insurance companies are concerned, whether in Chinese mainland, Hongkong or other countries, there is a risk of bankruptcy according to the law. In fact, the risk is as small as zero, because it involves people's livelihood security and industry stability.