What is insurance? Why do many Chinese people hate insurance?

Insurance is a kind of protection for people, and there are many types. People hate insurance because the sales are misleading.

This is a very popular video on Douyin. Mr. Li's mother bought a pension annuity insurance 10 years ago. When buying the insurance, the salesperson said: This insurance can provide for old age, and you can receive it directly after retirement, so you don't have to worry about money. Over the past ten years, Mr. Li's mother has paid 61,150 yuan in premiums. Now she wants to cancel the policy, but she can only get back 58,000 yuan. According to the original plan, the income from surrendering the policy at this time should be 160,000 yuan. The reality was very different from the income mentioned by the salesman. Later I found out the reason. Mr. Li’s mother bought a plan with an insured amount of RMB 50,000, but the salesperson used a plan with an insured amount of RMB 100,000 to show the benefits. This was a blatant misleading sales statement.

Facing the insurance company, Mr. Li angrily questioned: "Is it the insurance company that supports my mother?" Or does my mother support your insurance company? ?So, if you pay 60,000 and pay 50,000, do you need to buy this kind of insurance? According to data from Oliver Wyman, including life insurance, health insurance and property insurance, China's insurance premiums are expected to grow from 4.3 trillion yuan in 2019 to 8.6 trillion yuan in 2025, with an average annual compound growth rate of 12.4 during the period. It is expected that this scale will reach 4.5 trillion yuan by 2020.

As giant companies in the domestic insurance industry, Ping An of China and China Life have also performed very well in recent years. Public data shows that Ping An of China achieved operating income of 629.956 billion yuan in the first half of 2020, and China Life achieved operating income of 513.735 billion yuan in the first half of this year. The revenue of the two accounts for half of the industry.

Objectively speaking, although people have a more comprehensive understanding of the insurance industry with the popularization of medical insurance in recent years, there are still many people in our country who hate buying insurance. Attitude, mainly reflected in the special aversion to dealing with insurance personnel.

It is undeniable that the role of insurance is indeed very huge, but why do many people still hate insurance in China? In fact, it is all caused by the following reasons.

First of all, the professional level of most insurance personnel is insufficient. Among insurance practitioners, I have met many excellent and professional people. This is undeniable. But at the same time, because the turnover rate in the insurance industry is very high, the threshold for the insurance industry is generally very low. Anyone can become an insurance seller, including freshly graduated college students, laid-off workers, and square dancing aunts. ?

Insurance actually needs to calculate the insurance characteristics that are most suitable for each insured person based on his or her financial situation. However, you can see that many insurance salesmen today, after two or three days of training, only remember how to make sales and how to promote transactions, but not any other knowledge.

Secondly, insurance contracts are often completely different from the verbal promises made by insurance salesmen, which can easily lead to disputes. When signing an insurance contract, few people will study the insurance contract, which is hundreds of pages long. Even if ordinary people read it carefully, they may not actually understand it, because there are many professional terms in the insurance contract, and ordinary people have no idea what it is. What do you mean? If you pull out one of them at random, your claim will be far away, or it will not be established at all.

So for a long time, people have often misunderstood the insurance industry in the market: "It will not compensate for this, it will not compensate for that", which has led to people's aversion to insurance. Finally, there is indeed a gap between my country's per capita disposable income and developed countries. The depth and density of insurance premiums in China are not high now. The fundamental reason is that the per capita disposable income is not high, and housing loans have emptied the wallets of two generations, so there is no spare money to buy insurance.