No, according to the insurance law of China, insurance companies are not allowed to close down. The establishment of an insurance company requires assets of 200 million RMB, 70% of which is supervised and managed by the CIRC. In addition, the operating modes of insurance companies also include: national debt, savings, economic investment allowed by financial securities, etc. Therefore, after the establishment of an insurance company, its operation must be profitable, so it is unlikely that the insurance company will basically close down. If the insurance company does not operate well, the insurance company will choose to merge. In addition, the CIRC has the right to stop the business of this insurance company until there are enough funds to enable this insurance company to operate again. If it cannot continue to operate within a certain period of time, the court will declare it bankrupt. If an insurance company is declared bankrupt by the court, all its business will be continued after-sales service by another insurance company designated by the CIRC, or surrender procedures will be handled.
Legal objectivity:
Article 89 of the Insurance Law of People's Republic of China (PRC), an insurance company needs to be dissolved due to division or merger, or the shareholders' meeting or the shareholders' meeting decides to dissolve, or the reasons for dissolution stipulated in the articles of association arise, and it is dissolved after being approved by the insurance regulatory authority of the State Council. An insurance company engaged in life insurance business shall not be dissolved except for division, merger or cancellation according to law. When an insurance company is dissolved, a liquidation group shall be established according to law for liquidation. Article 90 of the Insurance Law of People's Republic of China (PRC) If an insurance company falls under the circumstances stipulated in Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China, with the consent of the insurance regulatory agency of the State Council, 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.