1: Overview of insurance funds: generally refers to the capital and reserves of insurance companies.

1.

Capital capital is the opening capital of an insurance company. Governments in various countries generally stipulate a certain amount of opening capital for insurance companies.

It is also a kind of reserve fund.

When a major natural disaster occurs and various reserves are insufficient to pay, insurance companies can use capital funds to assume insurance liabilities.

2.

Reserves are funds that insurance companies set aside from premiums in a certain proportion based on actuarial principles.

Different in nature from capital, it is the liability of the insurance company.

2. Characteristics of insurance 1. Mutual assistance.

It is reflected by the insurance fund established by the insurance company using the insurance premiums paid by the majority of policyholders to provide compensation or benefits to a small number of insured persons who have suffered losses; 2. Contractuality.

From a legal perspective, insurance is a contractual act; 3. Economical.

Insurance is an economic security activity realized through insurance compensation or payment; 4. Commodity.

Insurance embodies an economic relationship of equal exchange; 5. Scientific nature.

Insurance is an effective measure to scientifically deal with risks.