Are insurance companies allowed to close down?

Theoretically, an insurance company can close down, but this does not mean that the insurance business will be terminated and the policies purchased by users will be invalid. According to China's insurance law, insurance companies are not allowed to close down. If they are not well managed, insurance companies will choose to merge. If an insurance company is divided, merged or revoked according to law, it shall not be dissolved. If an insurance company cannot continue to operate within a certain period of time, it will be declared bankrupt by the court. If an insurance company is declared bankrupt by the court, all its business will be represented by another insurance company designated by the CIRC, and its after-sales service or surrender procedures will continue to be handled. In addition, the conditions for establishing an insurance company are very harsh, such as the major shareholders must have sustainable profitability, have no record of major violations of laws and regulations in the last three years, have a net asset of not less than 200 million yuan, and have professional knowledge and business experience. The China Banking and Insurance Regulatory Commission will also supervise the solvency of insurance companies. For insurance companies whose solvency is not up to standard, China Banking Regulatory Commission will take necessary measures according to the Provisions on the Administration of the Solvency of Insurance Companies. Therefore, the possibility of bankruptcy of insurance companies is very low.