After the establishment of an insurance company, 20% of the total registered capital shall be withdrawn and deposited in a bank designated by the financial supervision and regulation department, and shall not be used except for paying off debts when the insurance company is liquidated. According to this regulation, the withdrawal ratio of insurance deposits is 20% of its registered capital. The more registered capital, the more deposits. Generally speaking, the banks that accept insurance deposits should be the People's Bank of China and its branches, but sometimes there are exceptions, that is, the People's Bank of China can designate specialized banks to absorb insurance deposits. In particular, China's "Insurance Law" has strict provisions on the use of insurance deposits, that is, it is used to pay off debts when the insurance company liquidates, and it is not allowed to be used otherwise. The reason for this is to prevent the deposit from becoming a mere formality and ensure the solvency of the insurance company.
Legal basis:
People's Republic of China (PRC) insurance law
Article 97 An insurance company shall withdraw 20% of its total registered capital and deposit it in a bank designated by the the State Council Insurance Regulatory Authority. Except for paying off debts during the liquidation period of the company, it shall not be used.
Article 98 An insurance company shall, in accordance with the principle of safeguarding the interests of the insured and ensuring solvency, draw various liability reserves. The specific measures for the insurance company to withdraw and carry forward the liability reserve shall be formulated by the the State Council Insurance Regulatory Authority.