Can an insurance company go bankrupt?

Insurance companies can apply to the court for bankruptcy as long as they meet the bankruptcy conditions. According to the relevant laws and regulations, 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 the State Council Insurance Regulatory Authority, the parties or interested parties may apply to the people's court for reorganization, reconciliation or bankruptcy liquidation according to law.

legal ground

Article 90 of People's Republic of China (PRC) Insurance Law

Where an insurance company is in any of the circumstances specified in Article 2 of the Enterprise Bankruptcy Law of the People's Republic of China, with the consent of the the State Council Insurance Regulatory Authority, 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.

Article 91

After paying off the bankruptcy expenses and debts first, the bankruptcy property shall be paid off in the following order:

(1) Wages and medical, disability and old-age expenses owed to employees, basic old-age insurance and basic medical insurance expenses owed to employees' personal accounts, and compensation that should be paid to employees according to laws and administrative regulations;

(2) Compensation or payment of insurance benefits;

(3) Social insurance premiums and taxes owed by insurance companies other than those specified in Item (1);

(4) Ordinary bankruptcy claims.