Insurance Fund (Insurance Fund) refers to an insurance institution that specializes in risk management. It is established by collecting insurance premiums in accordance with legal or contractual provisions and is specifically used to compensate for economic losses or personal casualties caused by insured accidents.

The fund is the condition for the insurer to fulfill its insurance obligations.

Insurance funds in a broad sense refer to the reserve fund system of the entire society.

In a narrow sense, insurance funds refer to reserve funds pooled by insurance institutions, which set various insurance rates through scientific calculations based on the law of large numbers.

Insurance funds generally come in four forms: (1) Centralized national financial reserve fund.

This fund is a monetary fund set up in the national budget, specifically used to deal with unexpected expenditures and special needs in the national economic plan, such as relief from extraordinary natural disasters, invasion by foreign enemies, errors in national economic plans, etc.

(2) Insurance funds of professional insurance organizations, that is, insurance funds raised by insurance companies and other insurance organizations by collecting insurance premiums, are used to compensate insurance units and individuals for losses caused by disasters or to pay insurance premiums when due.

(3) Social security fund.

As a national social policy, social security aims to provide citizens with a series of basic living security.

Citizens have the right to receive material assistance from the state and society in the event of old age, illness, unemployment, disaster, or loss of ability to work.

Social security generally includes social insurance, social welfare and social assistance.

(4) Self-insurance fund, that is, the economic unit raises its own insurance fund to compensate for losses caused by disasters and accidents.

There are professional self-insurance companies abroad that raise funds on their own to compensate the losses of the parent company and its subsidiaries; my country has a "Safety Production Guarantee Fund", through the establishment of this fund, industry self-insurance is implemented, such as the "Safety Production Guarantee Fund" set up by China Petroleum and Chemical Corporation. The "Production Guarantee Fund" is one such form.

Insurance funds are a special form of social reserve funds. From the perspective of the essential attributes of the economic category, they are different in nature from other forms of reserve funds.

The fiscally centralized national reserve is formed by the state's forced participation in the distribution and redistribution of national income by virtue of the power of the political power. It is free and reflects the distribution relationship with the state as the main body; the mutual reserve fund is a kind of partnership investment*

Formed by the same entity and with the same capital contribution, although there is a relationship of rights and obligations between the partners, there is no commodity exchange relationship between them; the reserve fund in the form of self-insurance is a means of financial processing at one's own risk

.

The insurance fund embodies the commodity exchange relationship between the insurer and the insured based on the principle of equal value and compensation.

It can be seen that the insurance fund is a reserve fund established based on the principle of equivalent compensation.