The "three differences" are as follows:
1, death difference: actual death toll.
2. Cost variance: actual operating expenses
3. spread: the return on investment of insurance funds > the predetermined average interest rate in the insurance contract.
Investment income is an important source of profit for insurance companies;
With the development of insurance industry, the competition among insurance companies is becoming increasingly fierce. Judging from the operation of foreign insurance industry, most insurance companies are losing money in their insurance business, and all of them make up for the loss of direct underwriting business through the investment income of insurance funds.
In recent years, the practice of major international insurance institutions has also effectively verified the importance of capital utilization for the development of the insurance industry. Investment business began to keep pace with underwriting business, becoming two indispensable wheels for the development of insurance companies.
Extended data:
According to the Insurance Law of People's Republic of China (PRC):
Article 67
The establishment of an insurance company shall be approved by the the State Council Insurance Regulatory Authority. When examining the application for the establishment of an insurance company, the insurance regulatory agency of the State Council shall consider the development of the insurance industry and the need for fair competition.
Article 68
The establishment of an insurance company shall meet the following conditions:
(1) The major shareholders are profitable continuously, have a good reputation, have no record of major violations of laws and regulations in the last three years, and have net assets of not less than 200 million yuan; ?
(2) Having articles of association that conform to this Law and the Company Law of People's Republic of China (PRC); ?
(3) Having a registered capital that meets the requirements of this Law; ?
(4) Having directors, supervisors and senior managers with professional knowledge and business experience; ?
(5) Having a sound organizational structure and management system; ?
(6) Having a business place that meets the requirements and other facilities related to business operation; ?
(seven) other conditions stipulated by laws, administrative regulations and the State Council insurance regulatory agency.
Article 69
The minimum registered capital for the establishment of an insurance company is RMB 200 million. The insurance regulatory agency of the State Council may adjust the minimum registered capital of an insurance company according to its business scope and scale, but it shall not be lower than the limit specified in the first paragraph of this article. The registered capital of an insurance company must be paid-in monetary capital.
Article 70
To apply for the establishment of an insurance company, a written application shall be submitted to the the State Council Insurance Regulatory Authority, and the following materials shall be submitted:
(1) An application for establishment, which shall specify the name, registered capital and business scope of the insurance company to be established; ?
(2) Feasibility study report; ?
(3) making plans; ?
(4) the business license or other background information of the investor, and the financial and accounting report of the previous year audited by an accounting firm; ?
(five) the list of the person in charge of the preparatory group and the proposed chairman and manager recognized by the investors and their own recognition certificates; ?
(6) Other materials as prescribed by the insurance regulatory agency of the State Council.
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