The dividend source of dividend insurance is generally the distributable surplus generated by dead interest, spread interest and expense interest:

1. Dead interest, that is, the actual risk occurrence rate of the insurance company is lower than the expected risk occurrence rate, can be simply understood as the surplus generated when the actual number of people who have insurance accidents is less than the expected number of people who have insurance accidents;

2. Interest spread, that is, the surplus generated when the actual investment income of the insurance company is higher than the expected investment income;

3. the difference between fees and benefits, that is, the surplus generated when the actual operation and management expenses of the insurance company are lower than the expected operation and management expenses.

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. In the current statistics of the China Insurance Regulatory Commission, life insurance with dividends, endowment insurance with dividends, all-inclusive insurance with dividends and other types of insurance with dividend function are all included in the scope of dividend insurance. In December 212, CCTV exposed that dividend insurance was tricky, which aroused widespread concern in society.

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. For example, during the period from 1994 to 1999, the predetermined interest rate of the policy was generally around 8-1%, because the bank deposits at that time were also at this interest rate. What does this predetermined interest rate mean? It means that the insurance company should pay the insured according to this interest rate, which definitely requires the insurance company's return on investment to be higher than this. < P > But in fact, the bank lowered the interest rate seven times in a row, resulting in the insurance company's return on investment not reaching the original scheduled 8-1%. Assuming that the return on investment is 3.5%, it is very unfavorable for the insurance company to make up the difference by itself, and assuming that the return on investment later is 15%. It's also very bad for customers.

So in order to cope with this problem, the risks caused by interest rate fluctuation are shared by both parties, which leads to the concept of dividend insurance. It means that there is no dividend when the investment income is not good, but there is dividend when it is good. In order to avoid the fluctuation of dividend in different years, insurance companies generally smooth the dividend between different years.

there are two ways to distribute dividends: cash dividends and incremental dividends. Cash dividend is the direct distribution of surplus to policyholders in the form of cash. At present, most domestic insurance companies adopt this method. Incremental bonus refers to the distribution of bonus by increasing the amount of insurance every year during the whole insurance period.

Under the distribution method of cash dividend, the dividend can be collected in various ways: cash, accumulated interest, premium payment and purchase of paid-up incremental insurance.