1, the difference between members and customers
Mutual insurance companies conduct business with "members as the center", that is, the insured becomes a "member" after purchasing insurance products. When the insurance contract is terminated, the relationship between the "member" and the insurance company disappears. In joint-stock insurance companies, the insured becomes a "customer" after buying insurance, and the "owner" of the company is a "shareholder".
2. The difference between mutual assistance and profit.
The core idea of establishing mutual insurance companies is "mutual assistance and risk sharing", and the establishment of joint-stock insurance companies is definitely for profit. Two different forms have different purposes.
3, the difference between premium and capital
In mutual insurance companies, the premiums paid by members are both insurance premiums and capital. Because paying the premium is to increase the capital, and the two are combined into one. Only by adding new members or paying insurance premiums by old members can the capital of mutual insurance companies increase. Specifically, on the basis of equality and voluntariness, for the purpose of mutual assistance, * * * shares the risks and * * enjoys the benefits, pooling the premiums paid by members into a risk protection fund pool, and in case of disaster losses, using the funds to make up for the mutual insurance behavior of members.
In the joint-stock insurance company, the premium is the operating income, and the capital is obtained by issuing shares or injecting capital by shareholders.
In addition, there are essential differences between mutual insurance institutions and mutual aid programs. China's regulatory authorities have not completely liberalized the market in this field. It is reported that at present, more than 30 institutions have queued up at the CBRC to apply for mutual insurance licenses. The "mutual aid plan" is actually a kind of crowdfunding. There is no license, no clear supervision mechanism, no relevant laws and regulations, and no qualification to legally operate insurance business. Mutual funds, like insurance companies, also have legal business licenses, are also supervised by insurance supervision and management departments, and also require disclosure of solvency and other information.
Mutual insurance refers to an insurance activity in which a unit or individual with homogeneous risk protection needs becomes a member by entering into a contract and paying premiums, and the fund is liable for the losses caused by accidents agreed in the contract, or when the insured dies, suffers from disability, illness or reaches the age and time limit agreed in the contract.
Mutual insurance organizations refer to organizations that are jointly owned by all members on the basis of equality, voluntariness and democratic management and provide insurance services to members in the form of mutual assistance and cooperation, including general mutual insurance organizations, professional and regional mutual insurance organizations and other organizational forms.
There are only three real market-oriented mutual insurance organizations in China, namely: Zhonghui Property Mutual Insurance Agency, Mei Xin Life Mutual Insurance Agency and Huiyou Construction Property Mutual Insurance Agency.