An insurance company is an insurer in the form of company organization, and its business is to operate various insurance businesses. The insurer in the insurance relationship has the right to collect insurance premiums and establish insurance premium funds. Moreover, in the event of an insured accident, it is obliged to compensate the insured for economic losses.
Insurance companies that sell insurance contracts and major risk protection. Insurance companies are economic organizations that operate the insurance industry. Insurance companies are commercial insurance companies established with the approval of China Insurance Regulatory Authority and registered according to law, including direct insurance companies and reinsurance companies.
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The current insurance law stipulates that the organizational forms of insurance companies should be wholly state-owned companies and joint stock limited companies. Wholly state-owned insurance companies and joint-stock limited insurance companies shall be governed by the relevant provisions of China's company law, except for special provisions in the insurance law.
The organizational forms of mutual insurance companies and other insurance companies may be stipulated separately by laws and administrative regulations according to the reform and development of the insurance industry.
According to the State Council's approval of China People's Bank's report on the institutional reform plan of China People's Insurance Company, China People's Insurance Company will be reorganized into China People's Insurance (Group) Company (hereinafter referred to as "China Insurance Group") to meet the needs of the socialist market economy. After the reorganization, China Insurance Group has three subsidiaries, namely, China Insurance Property Insurance Co., Ltd., China Insurance Life Insurance Co., Ltd. and China Insurance Reinsurance Co., Ltd., which are engaged in property insurance, life insurance and reinsurance business respectively.
China Insurance Group will embody the principle of commercialization and adhere to collectivization and separate operation.
References:
Baidu Encyclopedia Entry Insurance Industry