Reserve ratio of insurance companies

Legal analysis: The Insurance Law stipulates that insurance companies will reinvest the remaining funds after deducting part of the insurance costs from the premiums collected each year (for example, large deposits will be deposited in banks to invest in large-scale national infrastructure projects, and a small part of them will be used in stocks, securities and futures markets. ), and the proceeds must be distributed to all insured users, with a fixed proportion of 70%. The specific liability reserve is determined by the size of the insurance company, so it is generally appropriate to choose a large insurance company to buy insurance or even wealth management products. Their advantages are clear dividends, high supervision and good reputation!

Legal basis: the calculation method of the total reserve in the insurance liability reserve is: the profit realized by the total reserve in the current year-the income tax in the current year-the adjustment tax-the profit retention.

Article 93 of the Insurance Law of People's Republic of China (PRC), except for life insurance business, the unexpired liability reserve is drawn from the retained insurance premium of the current year; The amount withdrawn and carried forward shall be equivalent to 50% of the retained insurance premium of the current year. An insurance company engaged in life insurance business shall withdraw the unexpired liability reserve according to the total net value of the effective life insurance policy. In the insurance business, due to the differences between life insurance and non-life insurance in business accounting, the reserve retention methods are not consistent. Non-life insurance reserves are divided into statutory reserves and discretionary reserves. Life insurance reserves can be divided into theoretical reserves and actual reserves.