The profit model of insurance companies is very simple, that is, borrowing chickens to lay eggs.
The customer's money is paid into the company, and the company shares the investment income of this money while providing guarantee.
It's just that a good company always has a surplus, and a poor company will raise money if it loses money.
For example, China Life has set up an investment institution to invest these premiums in some profitable projects (national projects: Three Gorges, China Southern Power Grid, etc.). ). After all, 1000 is too difficult, but 1 100 million is not that difficult.
Once it is profitable, 70% of the insurance company's profit is distributed to customers through dividends, and 30% is earned by itself. Once the investment fails, it is the insurance company's own loss, and the dividends of customers in that year are pitiful, so it is said that buying dividend insurance should buy big companies and brands.