Will insurance companies in China go bankrupt?

Insurance companies' bankruptcy policies are also guaranteed. "Although there is no precedent for bankruptcy of domestic insurance companies so far, insurance companies, as self-financing and independent market individuals, will certainly encounter operational difficulties and may go bankrupt." However, "even if the insurance company really goes bankrupt in the future, the insured will not lose everything." According to the Insurance Law, "an insurance company engaged in life insurance business shall not be dissolved except for division or merger". At the same time, "if an insurance company engaged in life insurance business is revoked or declared bankrupt according to law, its life insurance contract and reserve must be transferred to other insurance companies engaged in life insurance business; If the transfer agreement cannot be reached with other insurance companies, it shall be accepted by the insurance company designated by the financial supervision and regulation department to operate life insurance business. " Most insurance companies in the mainland started as state-owned financial enterprises, which made many consumers feel that insurance companies have state protection. In addition, there is no precedent for the bankruptcy of insurance companies in China so far, so many consumers are unprepared when buying insurance. However, with the full liberalization of the mainland insurance market, the number of insurance entities has rapidly increased to dozens, and competition will one day bring survival of the fittest. It is understood that since 1989, a large number of insurance companies in the United States have closed down, and Japan Mutual Life Insurance Company declared bankruptcy on 1997, ending the myth that "Japanese insurance companies cannot close down". Therefore, it is not impossible for those poorly managed and uncompetitive insurance companies in the domestic insurance market to go bankrupt. Although according to the insurance law, even if the insurance company goes bankrupt, the policy will be "taken over" by other companies, but experts remind that the insured's insurance interests will still shrink to a certain extent.