Will the insurance company go bankrupt? Many people say that insurance companies will not go bankrupt, which is not entirely correct. As a company, bankruptcy is possible, but the probability of bankruptcy of insurance companies is very low! Our country has a relatively perfect safeguard mechanism to prevent insurance companies from closing down.
1. Insurance companies are not free to open if they want to, and shareholders need to have strong capital strength (for example, behind Luxury Life is Kweichow Moutai, and behind Zhongan Insurance are Alibaba, Tencent and China Ping An);
2. Opening an insurance company requires real money and a lot of money as registered capital;
3, but also to extract all kinds of deposits, provident fund and other special funds for insurance liability preparation;
4. There are awesome reinsurance companies to spread the risks of insurance companies;
5. Have a strong insurance guarantee fund to deal with possible risks;
6. The China Insurance Regulatory Commission will strictly supervise the solvency and capital utilization of insurance companies;
More importantly, China's Insurance Law clearly stipulates: "If an insurance company is revoked or declared bankrupt according to law, its life insurance contract and liability reserve must be transferred to other insurance companies. If the transfer agreement cannot be reached, it shall be designated by the the State Council Insurance Regulatory Authority to accept the transfer. "
In other words, don't worry about the bankruptcy of insurance companies, especially life insurance companies that deal in long-term life insurance products. There must be a "speaker" to take charge of the overall situation.
A series of supervision and protection systems in the insurance industry are not unique to China, and there are similar protection mechanisms in the global insurance industry.
Articles 19 to 25 of the Measures for the Administration of Insurance Protection Funds clearly explain this:
Personal customers of property insurance companies, the loss of less than 50 thousand yuan, the insurance protection fund full relief; 90% of the part above 50,000 yuan will be rescued.
If a life insurance company goes bankrupt, the policy must be transferred to other companies. If no one is willing to take over, the CIRC will appoint one to take over. The insurance guarantee fund provides assistance to the recipients, and the personal insurance policy gives up to 90% assistance. The amount and proportion of assistance from the insurance protection fund can be adjusted, but it must be approved by the State Council.
In other words, even if the insurance company goes bankrupt, the policy of the insured will not be wasted, but there may be some losses.
Are big insurance companies better than small insurance companies? The average consumer thinks that small insurance companies are not small. It is also screened by the China Banking Regulatory Commission and strictly supervised, so the stability is not necessarily worse than that of large companies! Dad told you in an article: "Is it difficult for small insurance companies to settle claims? You must know these. "
When choosing insurance products, dad doesn't value the size of the insurance company. More importantly, whether the product price is high or not, and whether the contract terms are badly hurt. Never think that the products of big insurance companies are necessarily good.