Definition, source and application of insurance company funds

An insurance company is a financial institution established in accordance with China's Insurance Law and Company Law to engage in commercial insurance business. It is an enterprise specializing in commercial insurance business. The organizational forms of insurance companies in China are joint-stock companies and wholly state-owned companies.

A wholly state-owned insurance company shall set up a board of supervisors, which shall be composed of financial supervision departments, relevant experts and employee representatives of the insurance company.

Legal basis for establishing an insurance company

The establishment of an insurance company should first apply the provisions of the insurance law. Where there are no provisions in the Insurance Law, the provisions of the Company Law and other administrative regulations shall apply.

Conditions for establishing an insurance company

The establishment of an insurance company must meet certain conditions: having articles of association that meet the requirements of the Insurance Law and the Company Law; The registered capital shall not be less than the minimum amount of RMB 200 million as stipulated in the Insurance Law; Having senior managers with professional knowledge and business experience; Having a sound organizational structure and management system; Having a business place that meets the requirements and other business-related facilities.

Sources and uses of funds

It mainly consists of three parts, the first part is the largest bank deposit, and the second part is the bonds of state-owned 3A enterprises. The third part is the investment plan involving actuaries of insurance companies, such as the stock market, which is limited to about 20% in some countries.