Self-insurance companies, that is, self-insurance companies, are insurance companies owned or controlled by non-insurance companies. Their main purpose is to provide insurance protection for certain risks of the parent company and its subsidiaries. With the development of self-insurance company, its meaning has gradually joined openness, which not only provides insurance for the parent company, but also provides insurance for enterprises that have no affiliation with the parent company.
First of all, the fundamental difference between them lies in the identification of shareholders' identity.
Mutual insurance means that the insured, that is, shareholders, not only enjoy protection, but also enjoy the ownership, management and supervision of mutual insurance companies or organizations. The company's capital and operating income are owned by all the insured, and the management is elected and appointed by all the insured, and major issues are decided by all the insured. Therefore, mutual insurance organizations and companies determine from the mode that their business purpose is to serve the interests of all policyholders from beginning to end, whether it is risk protection or fund management.
The self-insurance company is a joint-stock insurance company, and the investor is a shareholder, but not necessarily the company's policyholder. Therefore, the ownership, management and supervision of funds of commercial insurance companies are owned by shareholders, and the insured only needs to pay premiums to purchase security services. The purpose of the company's operation is to make money for shareholders, so when making any decision, we should first consider making money, and providing protection for the insured is to make money.
On the basis of the above fundamental differences, it leads to several differences in the specific implementation process.
In terms of coverage, the coverage of mutual insurance is wider and more flexible than that of commercial insurance. Because the latter wants to make money, it is not easy to make money, it is not easy to sell, and a small number of people are usually not guaranteed at present. Mutual insurance is a group of similar people who face the same risks. No matter how many people and the probability of ensuring risks, as long as everyone agrees with the standard of underwriting claims, they can operate.
From the perspective of premium expenditure, the premium expenditure of mutual insurance is lower than that of commercial insurance. There are two main reasons. First, the sales expenditure is reduced. Mutual insurance is mainly aimed at the same kind of people. They naturally have strong polymerization and communication power, which is conducive to the spread and sales of products. Commercial insurance needs more professional sales staff to sell 1 to customers, and the cost is higher. On the other hand, it is the difference of capital gains. Under the same fund management strategy, commercial insurance companies need to extract certain benefits, while mutual insurance returns all benefits to the insured. Therefore, at one end, the per capita premium expenditure of mutual insurance is low.
From the perspective of financing ability, commercial insurance is better than mutual insurance because it has more financing channels, such as public offering of shares. Theoretically, mutual insurance can only charge more membership fees to members. Therefore, in the past two hundred years, many mutual insurance companies have been transformed or closed down because of financial problems.
In terms of decision-making efficiency, commercial insurance is also stronger than mutual insurance. Because its major issues are directly decided by the management of the company, and mutual insurance requires all the insured to participate in a specific way, whether it is direct participation or election of representatives, the process will inevitably be longer.
To sum up, mutual insurance and commercial insurance have their own advantages and disadvantages. The former is more conducive to maximizing the interests of policyholders, while the latter is more conducive to the survival and development of insurance companies. At present, there are many mutual insurance companies, such as blockchain technology company, 17 mutual aid with strong background, public welfare anti-cancer commune and so on. With the advent of the Internet age, mutual insurance and commercial insurance are facing new challenges and opportunities.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.