This kind of insurance is mainly to ensure the safety of users' accounts. Personal account fund security insurance refers to the insurance purchased by investors, and the insurance liability is only aimed at the unconventional risks of account fund loss caused by stolen brush and embezzlement during the operation of the platform. However, the risks directly related to the investor's capital security during the operation of the online lending platform: the borrower's credit risk, the capital redemption risk and the market risk are not covered by the insurance.
2. The borrower purchases insurance against loss of trading funds.
Transaction capital loss insurance refers to the insurance company's protection against the possible capital loss of investors in each transaction on the platform, including capital recharge, cash withdrawal, investment and repayment.
3. The borrower bought accident insurance.
P2P platform ensures the personal safety of platform borrowers. Once the borrower is unable to repay due to death, disability, serious illness, etc., the insurance company will pay the investor.
For example, the Small and Micro Finance Institute cooperated with China Life Insurance, and China Life Insurance provided personal accident insurance with a limit of 3 million yuan for the Small and Micro Finance Institute.
It should be noted that since it is accident insurance, it means that this kind of insurance has a guarantee effect only in the event of an accident, rather than the guarantee of principal and interest expected by investors.
4. The financing party shall take out mortgage property insurance.
This kind of insurance means that the financier takes out property insurance for the secured collateral. In case of accidents, such as fire and flood, the insurance company will pay for the collateral. This kind of situation only has the guarantee effect when the collateral has an accident, and it is also not the principal and interest guarantee that investors expect.
5. The borrower shall purchase performance credit guarantee insurance.
Performance credit guarantee insurance, that is, some projects on the P2P platform are underwritten by credit guarantee insurance to insure borrowers and ensure the repayment of investors' loans. If the borrower fails to repay the loan on time, the insurance company will make compensation, and the compensation will be paid directly to the investor to protect the investor's principal and investment income.
6. The financing party shall purchase performance guarantee insurance.
Another kind of performance guarantee insurance is purchased by the financing party, and the financing party pledges the basic assets. In case of overdue or bad debts, the insurance company will settle the claims. Insurance companies provide guarantee insurance for P2P platform financiers, who pledge basic assets such as bank acceptance bills or commercial bills. In case of overdue or bad debts, the insurance company will settle the claims.
7.P2P platform is insured with risk reserve management insurance.
Foreign insurance companies have accumulated more experience in credit insurance for small and micro enterprises. Recently, Debao Insurance signed a contract with a domestic P2P company to introduce a new insurance guarantee mechanism, which is called risk reserve management insurance.
It is understood that its main operation mode is that P2P companies pay premiums every month, and insurance companies provide protection for the risk reserve pool of P2P companies to ensure that the risk reserve can always cover bad debts. Once the risk reserve is insufficient, it will be paid by the insurance company. As one of the conditions, the risk reserve of P2P company is managed by the asset management department of insurance company.
6. Other forms of cooperation
The cooperation mode between P2P platform and insurance companies is still being explored. In addition to the above forms, the person in charge of a large P2P platform in China said that he had also considered ways for investors to ensure investment returns and prevent risks through mutual insurance.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.