Refers to the benefits when the actual number of deaths is less than the scheduled number of deaths; For example, based on the medical level at that time, 100 people died of cancer and 90 people died, and the insurance company set the premium according to this probability. After the customer pays the money, he can get compensation for cancer death. Assuming that the insurance company collects premiums according to the amount of compensation, it stands to reason that by the time 100 people die to 90, the money collected by the insurance company should have been spent. But now cancer is not a terminal disease. It should have killed 90 people, but actually it just died.
20, then the money received before has a relative balance, which is "the difference between death and profit." Of course, this may also be negative. For example, if 99 people die, the insurance company will become a "dead loss". This situation will not change obviously in one year, but in 20 years or longer, there may be a certain profit, because the medical level will only get higher and higher, many diseases will be overcome slowly, and the survival rate of the same patients will only get higher and higher over time.
Refers to the benefits generated when the actual operating expenses are lower than the scheduled operating expenses; It was originally expected that in order to maintain the operation of this part of the premium, insurance companies need to charge a certain fee to each customer. However, with the passage of time and the continuous improvement of management level, insurance companies can achieve better management results without so many people and so much money, and then there may be a balance of operating expenses.
Refers to the benefits arising from the investment interest rate of insurance funds being higher than the average predetermined interest rate of valid insurance contracts; It is the insurance company that promises to double your money after 20 years, but after 20 years, the insurance company earned 400% profit with your money. Then in addition to giving you twice, the rest will become the income of the insurance company.
Teacher Jiang cited this example to make it easier for everyone to understand and understand. In fact, in practice, insurance companies will reflect certain profits or losses on their books every year through the accounting year, instead of waiting until all the money is returned to customers for unified settlement.
Investing with your money is as simple as that.
Q: Would anyone be stupid enough to invest money in an insurance company?
A: Their investment projects are long-term and stable. For example, China Life Insurance and Guangfa Bank invested a piece of land in Guangzhou a few months ago to build a financial city. These projects will basically not lose money. There are many investment projects, that is, diversification, and not putting money in one basket. Moreover, China Life is a state-owned enterprise, and the state will not easily let insurance companies go bankrupt. So if you choose to buy insurance, you must choose a big company or a small company, depending on the situation. I basically don't consider small companies, because it involves solvency, and I'm not a black insurance company. I think it's best not to buy insurance for foreign-funded enterprises. Who knows when they will leave the China market? Aside from this, China Life Insurance, as a state-owned enterprise, has the cheapest life insurance premium in the whole industry. If you have plans from other insurance companies, you can refer to them and compare them. It seems to be off topic, that's all.
1. totally different.
Refers to the profit and loss caused by the difference between the actual number of deaths and the expected number of deaths, including death gains and death losses.
For example, a company has designed a life insurance product, and it is estimated that 10 people will die. If only five people died in reality, less than the original estimate, then the insurance company will make a profit, which is called "the difference between death and profit"; Conversely, if 15 people are in danger, the insurance company will lose money, which is called "death loss".
2. Cost difference
In addition to compensation, insurance companies also need various expenses in their daily operations, such as personnel salaries, venue rent, publicity and promotion expenses, etc.
Cost variance refers to the difference between actual operating expenses and estimated operating expenses. If the actual cost exceeds the budget, it is the cost difference loss, otherwise it is the cost difference loss.
Step 3 spread
Spread, as its name implies, is the difference in interest rates, and it is a concept of investment income.
After receiving the premium, the insurance company will definitely not lock the money in the safe and wait for compensation. Instead, it will extract part of the premium for compensation and invest the rest to obtain investment income.
If the investment income is higher than the policy interest rate, the insurance company will earn, which is the spread; On the contrary, the insurance company will lose money, which is the spread loss. For example, the insurance company guarantees the customer an interest rate of 3% and a return on investment of 6%, and the difference of 3% in the middle is earned by the insurance company.
The premium charged by the insurance company when issuing each policy is calculated according to actuarial assumptions. For each actuarial hypothesis, if the actual situation is different from it, it will bring the corresponding surplus or loss to the insurance company, which together is the ultimate profit of the insurance company. The main assumptions are as follows:
1.
Assumption about insurance accidents: Insurance companies are risk management institutions. Whether it is to cover risks such as ships and vehicles, or the death and illness of insurers, they will assume the incidence and/or the degree of loss when pricing. If the actual situation is better than the hypothetical situation, the insurance company's compensation expenditure will be less than the hypothetical indemnity, and this difference is one of the sources of profits, which is called "death difference" in the life insurance industry.
2.
Assumptions related to investment income: insurance companies are financial institutions in the final analysis. Just like banks earn the difference between deposits and loans, the actual investment income of insurance companies is often higher than the income paid to customers. This price difference is also one of the sources of profit, which is called "spread" in the industry. For most life insurance companies, spreads are the main source of profits.
3.
Assumption about expenses: There will be various expenses for insurance companies to carry out business and maintain operations, and these expenses will also be assumed in premiums. If the actual cost is less than the assumption, that is to say, the balance of expenses will become one of the profit sources of insurance companies, which is called "expense difference" in the industry. Due to fierce market competition, it is difficult for most companies to make money on the fee difference in the early stage of industry development.
In addition to the above three assumptions, there are other assumptions, such as dropout rate, guarantee and option, tax, inflation and so on. Because the video is long, I won't introduce it today. Interested friends can communicate privately.
How do insurance companies make money? The first is the difference between death and immortality. For example, in a group with 1 10,000 people, one person died within one year, and the insurance company paid 654.38+10,000 yuan. Then 10,000 people each charge 10 yuan, and the insurance company will not pay for it. If you receive 100 yuan, the insurance company will make money. Second, insurance companies will make money by investing in customers' premiums, investing in large-scale domestic projects, interbank lending, and large-sum agreement deposits. These are all channels for making money. Insurance is to ensure that there will be no big gains.
Insurance, as its name implies, is a guarantee mechanism, a tool for planning life finance, a basic means of risk management under the condition of market economy, and an important pillar of financial system and social security system. Specifically, it refers to the commercial insurance behavior that the insured pays the insurance premium to the insurer according to the contract, and the insurer bears the responsibility of paying the insurance premium for the property losses caused by the possible accidents agreed in the contract, or when the insured dies, suffers from disability, illness or reaches the age and time limit agreed in the contract.
From the perspective of economics, insurance is a financial arrangement to share the loss of accidents; From the legal point of view, insurance is a contractual act, a contractual arrangement in which one party agrees to compensate the other party for losses; From a social point of view, insurance is an important part of the social and economic security system and a "subtle stabilizer" for social production and social life; From the perspective of risk management, insurance is a method of risk management.
From the above, we can see that insurance is a guarantee mechanism, but why should insurance protect your mechanism and how can it protect your mechanism? Also maintain his labor expenses, such as salary, rent and taxes, etc. In fact, insurance is the most popular and the simplest. Its main profit depends on odds. What are odds? For example, if 10,000 people are insured within one year, only 10 people may need to pay for various uncontrollable reasons. This is the odds! A more complicated point is to carry out actuarial calculations on the basis of odds, and find out how much this type of insurance should be insured in stages in one year, five years, ten years and twenty years, and how much to be insured every year. Only in this way can we ensure making money and basic expenses! Therefore, actuaries in every insurance company are the most important talents! The best actuarial machine is even better than the general manager of an insurance company! Take Ping An Insurance as an example. A friend who used to have it said that the most important person in their company is the actuary, and the annual salary is second only to their manager Ma! Every time an insurance company launches an insurance product, the annual insurance period and insurance amount are repeatedly calculated by actuaries! A top actuary can not only accurately calculate the insurance period and insurance amount of a product, but also calculate the amount of reserve to be paid every year or even every month! Then use the remaining excess premium for other investments, such as factoring, such as large bank deposits, such as investment funds or direct access to the stock market, bond market and so on.
So don't worry that big insurance companies can't make money, make profits, or pay the security money that needs to be given to you! Because they are willing to spend a lot of money to hire top actuaries, they get the required rigid compensation every month when they launch the corresponding insurance products. Of course, there will be accidents occasionally, but this situation should be minimal. At the same time, ordinary insurance companies will re-insure an insurance product once! In other words, this product will be underwritten by other reinsurance companies, so that once you can't pay for it, you can also pay for it by reinsurance companies, reducing your risk! !
Many people may think that we pay so much money for insurance every year and never pay it. Do insurance companies make money like this?
If you think so, you underestimate the insurance company!
Dad, tell you how the insurance company makes money. Their main profits come from: mortality rate, expense rate and spread rate.
No _ Just say it!
What is the mortality rate?
It is the difference between the actual mortality rate and the expected mortality rate of the insured in the insurance company.
According to the previous data, insurance companies predict that 10 people will die for every 654.38+10,000 people who buy a certain life insurance product. This prediction is called "scheduled incidence", but in fact only six people died in the end, and the other four people did not die within the time limit, so these four people don't have to pay, and this unpaid money is the poor income of the insurance company. On the contrary, if there are 654300 people,
According to different products, at present, the commonly used pricing references for domestic life insurance products include the most commonly used statutory life table in China life insurance industry and the major disease incidence table in China life insurance industry, as well as the incidence provided by reinsurance companies and the underwriting experience of insurance companies themselves.
What is the difference rate?
It is the difference between the actual operating expenses and the estimated expenses of the insurance company.
For example, an insurance company operates a product, and then it is expected to generate a cost of 6.5438+million. As a result, the operating cost is actually only 8 million, and the remaining 2 million balance is "cost difference benefit".
If the actual cost is120,000, then the extra cost of 2 million is called "cost difference loss".
The cost of an insurance company operating a product generally includes the agent's commission, marketing promotion cost, store operation cost and so on.
The point is, what is the diffusion rate?
This is the main source of profit for insurance companies.
This is a bit like a bank deposit loan. The premium of insurance products will also have a fixed interest rate, such as 3.5%, which is the so-called predetermined interest rate.
As a result, the insurance company actually invested your premium, and the return after investment is 5.5%, so 2% of 5.5%-3.5%=2% is the "spread".
If the return is 3%, then 3%-3.5%= negative 0.5%, and this -0.5% is the "spread loss".
Generally speaking, the higher the predetermined interest rate, the cheaper the premium will be for consumers, but for insurance companies, they need higher investment income to make profits.
Insurance companies basically make money by this "three differences".
Of course, there is no obvious correlation between the profitability of insurance companies and their own scale, and the profitability of each insurance company is different.
Not to mention the macro environment, if we really want to measure the profitability of insurance companies, we can look at it from the following three aspects:
From the "spread rate" above, we can know that insurance companies will invest with the premiums we pay. Since there is investment, there is the ability to invest.
Investment income accounts for almost the bulk of the income of insurance companies, so there is no need to simply think that large companies have strong investment ability and small companies have weak investment ability.
Don't judge with such colored glasses.
Sales ability is perhaps the most direct embodiment of the insurance company's ability to make money. Traditional life insurance companies with a large team of offline agents have obvious advantages in sales ability.
But many operations, such as new employees have to buy insurance first.
Well, not much to say.
Dad thinks that pricing ability and sales ability are positively related. How can I put it? For example, if you manage a product and can't sell it, it is difficult to talk about bargaining power in the research and development of new products.
Most domestic insurance companies rely on spreads to obtain high profits.
In other words, insurance companies use our premium investment to make money.
If you think this answer is dry enough, remember to "like+pay attention" to dad!
Finally, if you have any questions about insurance, you can "privately" your father and provide you with a one-on-one free insurance plan!
The profit points of insurance companies are in these three areas: death profit, expense profit and spread profit.
Generally speaking, when designing insurance rates, the balance of dead difference, fee difference and spread has been calculated by combining historical data. Let's look at the meanings of these three terms:
1. totally different.
Death difference is the gain and loss caused by the difference between the actual number of deaths and the scheduled number of deaths, including death difference income and death difference loss. When insurance companies make actuarial pricing of life insurance, they will formulate the corresponding predetermined mortality rate according to the life table. When there is a difference between this predetermined mortality rate and the actual mortality rate of the insured group, there will be a difference in death.
Step 2 spread
Spread refers to the difference between the income brought by spot financial instruments such as bonds or treasury bills and the financing cost of investment. Spread, as the name implies, is the difference in interest rates.
3. Cost difference
Fee difference is a term used by life insurance companies in profit source analysis. Including fee difference income and fee difference loss. Profit and loss caused by the difference between the predetermined operating expense rate used in calculating the operating insurance premium and the actual operating expense rate of the current year.
Then talk about how to make a profit:
If the insurance company assumes that there are 1 1,000 claims in that year according to historical data, but the insurance company has made strict consideration for the insured users, resulting in better quality of these customers and lower claims rate, with 900 claims, then the claims of 1 1,000 unsettled customers are equivalent to one of the sources of profits this year; On the contrary, if the insurance company overpays 100 claims, the insurance company will bear the loss of 100 claims, that is, it will lose the profit of 100 claims.
The embodiment of the spread is the same: if the insurance company's return on investment is 5% and the actual return on investment is 8%, then 5% is the dividend paid by the insurance company to the insured customers, and 3% is the profit of the insurance company; On the contrary, if the return on investment of the insurance company is actually 3%, then the insurance company will bear 2%.
The cost difference is above, because insurance companies need a lot of manpower, such as backstage staff, as well as workplace electricity and property fees. If the insurance company spends 200 million yuan a year in the budget, but only10.50 billion yuan is actually used in that year, then the 50 million yuan saved is the profit; On the contrary, if the actual expenditure of the insurance company is 250 million yuan, then the insurance company will bear the loss of 50 million yuan.
That's my answer. I hope it helps.
Why did social security enter the market? Because the fees paid are more than the premiums collected, investment channels are needed.
So do commercial insurance companies. Part of the profit comes from the fact that the premium received is greater than the expenditure, and part of the premium received is used for investment to obtain income.
If you want to make money, you must first be a person in this industry, carefully understand the relevant majors and experience, common sense knowledge, and have a good relationship with company leaders. In front of your customers, you can show that you know all the major problems in this industry. Most people buy insurance from you for the convenience of getting out of danger, or seek your help when there are similar insurance-related things. In fact, what they sell in insurance companies is mainly interpersonal relationships and trust, and it is easy to make money.