China's insurance market is still oligopolistic. Take 20 19 1 quarter as an example: 86 property insurance companies, 47 are profitable and 39 are losing money, and the profits of Ping An, PICC and CPIC account for 98% of the total profits of the industry; Among 79 life insurance companies, 46 are profitable and 33 are losing money. The profits of the top nine companies account for 96% of the total profits of the industry, and only China Life Insurance and China Ping An account for two-thirds.
From the data point of view, many insurance companies have suffered losses all the year round, but they have never heard of any insurance company going bankrupt. The main reasons are as follows:
First of all, the characteristics of the insurance industry itself determine that the profit of insurance companies needs a certain period. The newly established insurance company must be losing money, and the premium may not be enough to rent a building to pay wages. There is an unreliable empirical data in the industry. It takes an average of seven years for an insurance company to make a profit. Many insurance companies have been established for a short time, and their business development has not yet reached the profit stage, so the shareholders in the early stage should continue to invest funds to support the company's continuous operation.
Second, because we are optimistic about the future development space of China's insurance market, or want to do something important by absorbing huge funds from insurance companies, capital keeps running to this industry from all directions, which leads to the insurance business license itself becoming a hot topic. In China Banking and Insurance Regulatory Commission, the number of people queuing to apply for the establishment of insurance companies far exceeds the number of existing insurance companies. If the major shareholder of the insurance company doesn't want to do it because of losses, there are many takers, and there is no need to declare bankruptcy. For example, the current Agricultural Bank of China Life Insurance is Jiahe Life Insurance, which was taken over by ABC, and BOC Samsung is AVIC Samsung, which was taken over by BOC.
Third, the insurance industry has a special kind of risk fund, called insurance protection fund. If the problematic insurance company can't find the pick-up man in a short time, the CBRC will directly make a move, inject capital through the insurance protection fund to maintain its operation, and then deal with it slowly. Xinhua Life Insurance, China United and Anbang Group are living examples.
In a word, it is quite difficult for insurance companies to go bankrupt, especially life insurance companies. The Insurance Law clearly stipulates that it shall not be dissolved except for separation or merger. They can't die if they want to these days.
I hope the above superficial answers will help everyone.
"Insurance Law" clearly stipulates: _ The family cannot _ protect _ the company falls _.
Insurance is a public welfare product provided by the state to promote social stability. Its appearance is to protect the uncertainty of the future and prevent accidents from causing a devastating blow to a person or family. Since it is a public welfare product, the state will support it and there will be new premium income every year. As long as it can circulate, it will certainly not go bankrupt.
It is stipulated that the insurance industry cannot fail, and even if it fails, someone must take over.