Dividend insurance refers to a kind of life insurance in which an insurance company distributes the distributable surplus of this kind of dividend insurance in the previous fiscal year to customers in the form of cash bonus or value-added bonus according to a certain proportion after the end of each fiscal year.

According to the statistics of China Insurance Regulatory Commission, life insurance with dividend, endowment insurance with dividend, all-insurance with dividend and other insurance with dividend function are all included in the scope of dividend insurance.

Dividend insurance originates from the fact that the fixed interest rate of the policy and the risk of changes in the market rate of return will be shared between the insured and the insurance company for a long time to come.

Dividend insurance is an effective means for life insurance companies all over the world to avoid interest rate risks and ensure their own stable operation. Compared with the traditional guaranteed life insurance policy, dividend policy provides non-guaranteed insurance benefits to policyholders, and the distribution of dividends will also affect the debt level, investment strategy and solvency of insurance companies.