The use of insurance funds is a matter for professionals

It is purely a policy question, and it should be answered by financial experts and senior leaders of the Insurance Regulatory Commission.

The prerequisite for insurance financing is to guarantee the indemnity or payment of insurance.

Insurance financing refers to the intermediary role played by re-investing the idle part of insurance funds into the process of social reproduction. In order to make the insurance operation stable, the insurer must ensure the preservation and appreciation of the value of the insurance funds, which also requires the insurer to use the insurance funds.

The use of insurance funds is not only necessary, but also possible.

On the one hand, due to the time lag between insurance premium income and compensation expenses, it provides the possibility for insurers to finance insurance funds.

On the other hand, the occurrence of insured accidents is not all at the same time, and the insurance premiums collected by the insurer cannot be compensated in full at one time, that is, there is sometimes a quantitative lag between the insurance premiums collected by the insurer and the compensation expenses, which also provides the possibility for the insurer to carry out the financing of insurance funds, but the financing of insurance funds should be based on the premise of ensuring the compensation or payment of insurance, and at the same time, it is necessary to adhere to the principles of legality, liquidity, safety and efficiency.

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

1. It's wrong. Article 106 of the Insurance Law stipulates that the use of funds by insurance companies must be sound and follow the principle of safety. The use of funds by insurance companies is limited to the following forms:

a) Bank deposits; (2) Buying and selling bonds, **, **investment**shares, etc.; (3) Investing in immovable property; (4) Other forms of use of funds as provided. The specific management measures for the use of funds by insurance companies shall be formulated by the insurance regulatory authority in accordance with the provisions of the preceding two paragraphs. 2. Error.

Please refer to Article 23, Paragraph 3 of the Insurance Law.

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

If the insurance company's capital is mainly **, it --- capital. It is the share capital subscribed by shareholders or the capital of a state-owned insurance company.

-Reserve. In order to protect the interests of the insured, the insurance company withholds funds from the premiums collected on a regular basis and in a certain percentage.

The main investment channels generally include large agreement deposits with banks, national infrastructure, bonds of state-owned 3A enterprises, primary and secondary markets, and other forms of capital use that are open to the public.

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

China's insurance law has strict regulations on the use of funds by insurance companies, and Article 106 stipulates that the use of funds by insurance companies must be sound and follow the principle of safety. The use of funds by insurance companies is limited to the following forms: (1) bank deposits; (2) Buying and selling bonds, **, **investment**shares, etc.; (3) Investing in immovable property; (4) Other forms of use of funds as provided.

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

First of all, to correct it, you can't ask the insurance company what the use of the funds is, you should say what is the form of investment of the insurance company's funds.

Of course, the use of the insurance company's funds is mainly for compensation, and it is also used for operating expenses.

The main forms of investment of insurance companies are savings deposits, valuable **, loans, real estate investment and project investment.

The first savings deposit is what you call a bank.

The second has three categories: bonds, bonds, and investments. Bonds include ** bonds, financial bonds and corporate bonds. Investment refers to the concentration of investors' funds through the issuance of financial instruments such as bonds and other financial instruments by experts.

Loan refers to a kind of lending or credit activity in which an insurance company, as a credit institution, directly provides insurance funds to those in need on the condition that they must be repaid at a certain interest rate. There are mainly mortgages. Working capital loans.

Loans for technological transformation projects and life insurance policy loans. (In China, there are only policy pledge loans).

Real estate investment refers to the investment of insurance companies in the purchase of land, and the investment form obtained by the founders of the real estate. (There is no in our country).

Project investment belongs to the direct investment of insurance companies, which is direct investment in production, operation, or the establishment of wholly-owned non-insurance enterprises. (There is no in our country).

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