Our country's "Interim Regulations on Insurance Management" clearly states that insurance funds refer to the capital, guarantee funds, operating funds, various reserves, provident funds, public welfare funds, undistributed surplus, insurance protection funds and other funds specified by the state of insurance companies.
"Article 77 of my country's "Insurance Company Management Regulations" stipulates: "Insurance companies shall withdraw deposits in accordance with the law.
Except for being used to pay off debts in accordance with the law during liquidation, insurance companies are not allowed to use or dispose of security deposits without authorization.
"Article 78 stipulates: "Insurance companies shall withdraw insurance protection funds in accordance with the law.
The insurance security fund is centrally managed and used in accordance with the relevant regulations of the China Insurance Regulatory Commission.
"Therefore, from the perspective of my country's insurance laws and regulations, the funds that insurance companies can use freely include the following. Equity assets refer to the insurance company's own funds such as capital, provident funds, public welfare funds, and undistributed profits. (1 ) Capital. According to the provisions of the Company Law of the People's Republic of China, capital refers to the amount of capital contributed by all shareholders registered in the company registration authority. It is the various amounts invested by investors as capital in the enterprise. The value of assets is also called registered capital. Capital funds can be divided into state capital, legal person capital, and foreign capital. (2) Provident fund includes capital reserve fund and surplus reserve fund. In addition to the company's production and operation, shareholders' equity income formed by capital, assets themselves and other reasons, the capital reserve fund of a joint-stock company mainly comes from premium income from stock issuance, gifts received, asset appreciation, and acceptance from other companies due to mergers. Net assets, etc. Among them, stock issuance premium is the most common and important source of capital reserve fund for listed companies. (3) Surplus reserve fund refers to the accumulated funds withdrawn from after-tax profits according to the regulations. , divided into statutory surplus reserve and public welfare fund. When the cumulative amount withdrawn from the statutory surplus reserve does not reach 50% of the registered capital, 10% of the after-tax profit is withdrawn, and the public welfare fund is withdrawn at 5%-10%. (4) Undistributed. Profit is the undistributed profit of the enterprise. It can continue to be distributed in subsequent years. Before distribution, it is an integral part of the owner's equity. From a quantitative point of view, undistributed profit is the undistributed profit at the beginning of the period plus the current period's realization. The net profit is the balance after subtracting various surplus reserves and distributed profits. Undistributed profits have two meanings: one is the profit that is reserved for subsequent years; the other is the profit for which no specific purpose is specified. As for other parts of owners' equity, enterprises have greater autonomy in the use of undistributed profits. Insurance reserves refer to the insurance company's guarantee that it will fulfill its insurance compensation or payment obligations as promised. According to relevant government laws or specific business needs, A certain amount of funds drawn from premium income or surplus corresponding to the insurance liabilities assumed. In order to ensure the normal operation of insurance companies and protect the interests of the insured, various countries generally stipulate that insurance companies should deposit funds in the form of insurance legislation. Insurance reserves are used to ensure that insurance companies have the solvency corresponding to the scale of their insurance business. It includes the following three aspects: (1) Unexpired liability reserves refer to the deposits for unexpired insurance policies at the time of the accounting year's final accounts. A reserve system. The reason why this kind of fund reserve is required is that the insurance business year and the accounting year are inconsistent. For example, if the policyholder pays the insurance premium for one year on October 1, 2009, 3 months of it belong. In the 2009 fiscal year, the remaining nine months belong to the next fiscal year. This insurance policy will continue to be effective in the first nine months of the next fiscal year. Therefore, the corresponding part of the insurance premium earned in the current year will be deposited as the next fiscal year. The insurance premium income for a year is used as the source of compensation funds for the insurance policy. According to my country's insurance actuarial regulations: the unexpired liability reserve at the end of the fiscal year is withdrawn at 50% of the gross premiums retained during the fiscal year.
Unexpired liability reserves should be calculated and withdrawn at one time during the final accounts of the fiscal year. The calculation methods for withdrawal include annual average estimation method, quarterly average estimation method and monthly average estimation method.
(2) The pending claims reserve, also known as the claim reserve, is a reserve that is set aside from the insurance premium income of the current year when an insured event occurs before the final accounts of the accounting year but the compensation has not yet been decided or the compensation is payable but has not been paid.
It is a fund reserve set aside by the insurance company for unpaid compensation due to insured accidents that have occurred during the accounting year during the final accounting of the accounting year.
The reason for withdrawing the outstanding compensation reserve is that there is a time delay between the occurrence, reporting and settlement of a compensation case, which sometimes lasts for several years.
In accordance with the principles of accrual accounting and cost-to-income matching, insurance companies must estimate in advance the number of claims that have occurred during each accounting period and set aside reserves for outstanding claims.
The outstanding compensation reserve includes the incurred and reported compensation reserves, the incurred but unreported compensation reserves and the claim settlement expense reserves.
(3) Reinsurance reserves.
Insurance reserves are a fund used by insurance companies to assume insurance liabilities or prepare for future claims.
Its fund is withdrawn regularly from premium income or assets.
Although the source of insurance reserves is premium income, this fund drawn from insurance premiums is not an asset of the insurance company, but a liability.
This liability must be backed by assets of equal value.