This is called "responsibility reserve" and is divided into three levels.
The liability reserve below 100% is insufficient, 100%- 150% is sufficient I, and above 150% is sufficient II.
As for what you said, large-scale disasters may lead to insufficient funds for small companies. In addition, investment failure and business scale expansion may lead to insufficient liability reserve.
Ping An's overseas investment failed in 2008, which eventually led to the reduction of the liability reserve to about 1 10%.
It was not until May this year that it was made up to more than 150%. )
For insurance company, his business volume is limited. Once he exceeds his repayment ability, he must take out insurance from other insurance companies, and several friends upstairs also said so.
3. Now the insurance industry in China belongs to golden decade, and a large number of companies are pouring in.
Before Xinhua, the liability reserve was also insufficient, even falling to more than 100%.
In the same year, the China Insurance Regulatory Commission took out 654.38+06 billion yuan to become a shareholder in Xinhua.
In May this year, Huijin (Baidu, enter the word "Huijin" and you will know how powerful he is) directly acquired 38% of the shares of Xinhua and became the largest shareholder of Xinhua.
4. State support
Due to the shortcomings of social security (wide coverage and low security), China strongly supports commercial insurance.
The latest is the "2008 Beijing-Shanghai Expressway" with a share of 80 billion. Among the major state-owned banks and insurance companies, the government finally chose the insurance company.
5. When the country is incapable,
When the country has the ability, it will certainly not let insurance companies go bankrupt (especially life insurance).
What should we do when the country is incapable?
Look at the American government. During the financial crisis, faced with the choice between Lehman Brothers (the fourth largest investment bank in the United States) and AIG (an established insurance company), we all know that the final result is to "protect AIG from Lehman"
Of course, large companies are generally more stable and have more outlets than small companies.
For example, China Life Insurance and China Ping An have nationwide outlets (China, Tibet and Taiwan Province Province have no outlets for the time being).
Small companies also have their advantages, such as a product that is more suitable for you.