The role of insurance
The function of financing will reinvest the idle part of insurance funds in the process of social reproduction. The function of social security management can expand the coverage of social security by providing insurance for people without social security, and the function of social risk management provides strong data support for social risk management.
Insurance has the function of sharing economic losses. Insurance companies collect premiums from a large number of policyholders to share the huge property losses caused by accidents of a very small number of members. Insurance has the function of economic compensation. If the insured causes a lot of economic losses due to accidents and major diseases, the insurance company will pay a certain proportion to avoid causing secondary harm to the victim.
Insurance has the function of investment. The insured can get a certain dividend in the corresponding insurance period by purchasing the corresponding wealth management insurance products. At the same time, the insurer can also use the premium paid by the insured to invest and operate insurance funds.