Whether the mutual aid plan is cyber insurance or not?

Insurance is good, as long as you buy the right insurance for yourself is the best protection.

The most essential difference between mutual aid plan and mutual insurance is "compliance and legality", because the mutual aid plan is a voluntary organization, it will not be supervised by relevant departments, and it is easy to leave loopholes for illegal platforms to establish capital pools, and there is no full guarantee in financial stability and compensation capacity.

Mutual insurance must be approved by the China Banking and Insurance Regulatory Commission before it can be established, and it is a real "certificate to work". At present, there are only five mutual insurance cooperatives in China, and the first mutual insurance cooperative in China was established in February 2017, and as of 2022, it has been running smoothly for 5 years.

The mutual insurance cooperatives must be approved by the China Insurance Regulatory Commission before they can be established, which is a real "certificate to work". At present, there are only three mutual insurance cooperatives in China, and the first one is Zhonghui Property Mutual Insurance Cooperative, which has been running smoothly for 5 years. Since its opening, the comprehensive risk rating (classified supervision) has been Class A in each quarter.

The most essential difference between the mutual aid plan and Chunsui mutual insurance is that "Dongsenyuan is compliant and legal", because the mutual aid plan is a voluntary organization, it will not be supervised by relevant departments, and it is easy to leave loopholes for illegal platforms to establish capital pools, and there is no full guarantee in financial stability and compensation capacity, and Alipay's "mutual treasure" was shut down for this reason some time ago.

Mutual insurance must be approved by the China Banking and Insurance Regulatory Commission before it can be established, and it is a real "certificate to work". At present, there are only five mutual insurance cooperatives in China, and the first national mutual insurance organization in China was established in February 2017, and as of 2022, it has been running smoothly for 5 years. Since its opening, the comprehensive risk rating (classified supervision) has been Class A in each quarter.

At the end of the fourth quarter of 2020, the consolidated (core) solvency adequacy ratio reached the overall sound of the operation and the solvency was greatly sufficient.

Cyber mutual aid is real, but there are some risks.

Mutual insurance: It is a form of insurance that is voluntarily organized by some people who have common requirements and face the same risks, and is a form of insurance that pays a share of risk loss compensation in advance. The ** shall be liable for the losses caused by the accident as agreed in the contract, or bear the liability for paying insurance money when the insured dies, is disabled, or sick and reaches the age, time limit and other conditions agreed in the contract.

Risk 1: The China Insurance Regulatory Commission believes that if they do not understand the operation mode behind the "9 yuan" car insurance, some consumers may be attracted by the slogans such as "ultra-low price" and "product innovation" promoted by the "Quark Alliance", and mistakenly think that it is an insurance institution and promote insurance products, which may lead to misunderstanding and rejection of the formal insurance market and standardized car insurance business behavior. Once the Internet company's services are not in place or the money runs away, it may lead to the risk of mass incidents.

Risk 2: No insurance operation and intermediary qualifications. At the beginning of 2015, the China Insurance Regulatory Commission (CIRC) issued the Trial Measures for the Supervision of Mutual Insurance Organizations for the first time, which clearly stipulates the conditions for the establishment of mutual insurance organizations and the operation of funds.

Risk 3: Gold management and feasibility are also a matter of concern, especially in terms of fund management. Industry insiders believe that similar "mutual aid plan" income of a few yuan membership fee is obviously unable to meet the needs of car insurance compensation, and its compensation funds may generally have two channels, one is to rely on the continuous absorption of new members to expand the capital pool, and use the later membership fee to meet the compensation application of early members; The other is to expand the scale of customers through ultra-low **, and then win a new round of venture capital, and use the investment money as compensation.

Once the cash flow is broken due to the increase of staff, financing difficulties or other reasons, and the later payment promise cannot be fulfilled, the risk of the platform closing is very high.

Risk 4: Wang Ping, an associate professor of civil and commercial law at China University of Political Science and Law, also said in an interview with the reporter of the rule of law weekend that although this kind of mutual aid plan uses some insurance principles, it is more of a civil mutual aid contract, reflecting the nature of social welfare, and its operating mechanism and members' expectations of the mutual aid plan are very different from those of insurance companies.

Of course. The biggest difference is that the mutual aid plan is an "unlicensed operation", without the supervision of the first department, it is easy to leave loopholes for illegal platforms to establish capital pools and illegal fundraising, and there is no full guarantee in terms of financial stability and compensation payment ability, so there is no possibility of sustainable development.

The mutual insurance cooperatives must be approved by the China Insurance Regulatory Commission before they can be established, and they are truly "licensed to work". At present, there are only three mutual insurance cooperatives in China, and the first one to be established is Zhonghui Property Mutual Insurance Cooperative, which has been running smoothly for 5 years, so it is guaranteed in terms of compensation and can also bring more stable protection to everyone.

Network mutual insurance is a variant of China's special national conditions and the current special regulatory environment, and it is a phased product. Although the China Insurance Regulatory Commission (CIRC) issued the Trial Measures for the Supervision of Mutual Insurance Organizations last year, the various regulations are basically based on foreign mutual insurance models. However, the licence has not been issued for a long time.

However, some pioneers in China were worried about missing the opportunity, so they began to explore in the name of online mutual aid after improvement. In addition to not having a license and not having a registered insurance company, their model has the following characteristics:

First: Reach the masses, not the same people. In this way, the user group is expanded, which is conducive to the rapid accumulation of users, but it loses the characteristics of the same kind of people;

Second: no upfront fees, or small upfront fees, rather than annual payments according to the actuarial model. This lowers the threshold for customer acquisition, but the follow-up payment willingness and retention rate of the attracted users will be reduced.

Third, the subject matter of protection is mainly critical illness and accidental injury, which are relatively standardized, which is conducive to risk control by mutual aid platforms. However, the flexibility of mutual insurance has not yet been brought into play.

Commercial insurance is a form of commercial insurance that is operated by entering into an insurance contract for the purpose of profit, and is operated by specialized insurance companies.

Features of Commercial Insurance:

1 The main body of commercial insurance is a commercial insurance company.

2 The insurance relationship reflected in commercial insurance is reflected through the insurance contract.

3. The object of commercial insurance can be people and things (including tangible and intangible), and the specific object is people's life and body, property, and property-related interests, liabilities, credit, etc.

4. The operation of commercial insurance should be aimed at profit, and it is necessary to obtain the maximum profit to ensure that the insured enjoys the greatest economic security.

Although it is still in its infancy and faces many problems and challenges, it is still very optimistic about the development of network mutual insurance in China, as a useful supplement to the social security system and commercial insurance, it can cover many people who are not yet fully protected, but need protection. On the basis of the traditional mutual aid platform, with the help of blockchain technology, it realizes decentralized information sharing, innovates to achieve comprehensive and transparent operation, and builds a fair, just, open, safe and efficient open mutual aid information service platform for the public.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"