What does it mean for insurance companies to stop selling products?

Some types of insurance products are restricted by the state and are not allowed to be sold. For example, a new insurance policy was introduced this year: dividend wealth management products that can be returned in just three years are likely to stop selling next year. The reason is this. Insurance companies introduce quick return products to cater to the preferences of most customers. After all, the competition is fierce, but this product is not conducive to the sustainable development and benign development of insurance companies. In order to curb this situation, China Banking and Insurance Regulatory Commission has issued a policy of restricting or stopping sales.

Stock insurance company

Similar to joint-stock companies in other industries, joint-stock insurance companies are established by sponsors according to the company law, which stipulates the number of sponsors, the company's debt limit, the type of shares to be issued, taxes, business scope, company power, application procedures, company license, etc. The company organization in western developed countries consists of three power groups, namely shareholders, board of directors and senior managers.

mutual insurance company

Mutual insurance company is also a form of company organization, but it is a non-profit company without shareholders, and the company is owned by the insured. Therefore, the insured has a dual identity, both as the owner and the customer of the company. Shareholders of joint-stock insurance companies are not necessarily customers of the company. As the owner, the insured of the mutual company can participate in the election of the board of directors, and the board of directors appoints the senior management personnel of the company to be responsible for the business operation and management of the company. The insured can share the operating results in the form of "dividends".

Exclusive insurance company

Insurance companies established by industrial and commercial enterprises to provide risk insurance or reinsurance for enterprises, affiliated enterprises and other related enterprises. Long-term life insurance, or savings life insurance, has different insurance income and payment methods from general insurance, so its profit mode is also different from general insurance. In some countries with mature insurance markets, the loss opportunities of life insurance companies are much lower than those of ordinary insurance companies.

Long-term insurance contracts are like "lump sum deposit and withdrawal" savings deposits. The contract period between an insurance company and a customer may be as long as 20 years, or until the insured is 60 years old or even 100 years old. The amount of withdrawal due by both parties; That is, the life insurance amount (insured amount). The client contributes capital on schedule during the contract period; That is, to pay the premium. The insured amount is generally greater than the total premium, and there is a return income. In fact, its long-term average rate of return is similar to that of bank deposits. In order to ensure the repayment demand in the future, insurance companies have made "deposit" arrangements for customers, and most of the "deposits" are invested in some long-term bonds.