(1) Basic functions of insurance The basic functions of insurance are the original and inherent functions of insurance.

There are two main views on the basic functions of insurance. One view is that the basic functions of insurance are to allocate losses and compensate for losses or pay insurance benefits; the other view is that the basic functions of insurance are economic compensation and insurance payment functions.

The economic compensation function is to provide compensation according to the actual loss amount of the insured subject matter according to the insurance contract after the insured accident occurs and the loss is caused. This is the basic function of property insurance; the insurance payment function is to compensate both parties according to the insurance contract when the insured accident occurs.

It is the function of personal insurance to pay the agreed insurance amount.

(2) Derived functions of insurance The derived functions of insurance are functions generated on the basis of basic functions.

The derived functions of insurance are financing functions and disaster prevention and loss prevention functions.

Disaster and loss prevention is an important part of risk management.

The biggest feature of insurance disaster prevention and loss prevention work is that it actively participates in and cooperates with other disaster prevention and loss prevention authorities to expand disaster prevention and loss prevention work.

Insurance disaster prevention and loss prevention work is reflected in: fulfilling social responsibilities from underwriting to claims settlement; increasing the income of insurance operations; promoting the risk management awareness of policyholders, thereby prompting them to strengthen disaster prevention and loss prevention work.

The financing function of insurance is the function of the insurer to participate in social financing.

It is reflected in two aspects: on the one hand, it has a financing function; on the other hand, it reflects its investment function through investment methods such as purchasing securities and real estate.

(3) The macro effect of insurance The macro effect of insurance is the economic effect that insurance has on the whole society and the national economy as a whole.

Specifically, it is reflected in the following aspects: (1) It is conducive to the sustained and stable development of the national economy (2) It is conducive to the promotion and application of science and technology (3) It is conducive to social stability (4) It is conducive to foreign trade and international exchanges, and promotes international revenue.

Balance of Support (4) The micro-role of insurance The role of commercial insurance in the micro-economy refers to the economic effect produced by insurance as a financial treatment method for economic unit or individual risk management.

In a general sense, the microscopic role of insurance is reflected in the following aspects: (1) Insurance helps enterprises to resume operations in a timely manner and stabilize income (2) It is helpful for enterprises to strengthen economic accounting (3) It promotes enterprises to strengthen risk management (4)

It is conducive to stabilizing people's lives (5) Improving corporate and personal credit Reposted to: Insurance Practitioner Examination_Exam Responsible Editor: Water Artesian Correction Transfer: Commercial Insurance Social Management Functions Social management in a broad sense refers to the management of all areas of social activities, including

Political management, economic management, social and cultural life management.

Social management in a narrow sense mainly refers to the management of social order, population, environment, social security, social welfare and social services.

Judging from the experience of foreign developed countries, social management functions in a narrow sense are mainly completed by the government and third departments (mainly intermediary organizations), but enterprises also assume part of the social management functions under certain conditions.

Practice shows that the social management function of commercial insurance is the product of the development of commercial insurance to a certain stage and is the sublimation of the function of commercial insurance.

From an economic point of view, the social management function of commercial insurance is a positive externality generated when commercial insurance develops to a certain stage, and such externality is achieved by providing effective benefits to society in the process of the insurance company's pursuit of profits.

What is achieved through products and services is the “spillover” of its business results to society.

Specifically, the social management functions of commercial insurance are mainly reflected in the following aspects: 1. Commercial insurance is a stabilizer of social and economic development 1. Commercial insurance provides economic loss compensation and benefits to help the insured restore production and living order as soon as possible

, ensuring the smooth progress of social reproduction and conducive to social stability.

In social reproduction and people's daily life, various natural and man-made disasters cannot be completely avoided. Insurers pay a small amount of premiums to convert uncertain future losses into certain current expenditures; commercial insurers establish insurance funds to realize the benefits to the insured.

compensation for losses, thereby playing the social stabilizer function of commercial insurance.

It can be said that commercial insurance is a market-oriented risk transfer and social mutual assistance system. This system achieves effective allocation of resources through the market and has inherent high efficiency.

2. Commercial insurance shares the government’s social security functions and participates in building a strong social security network.

Judging from foreign experience, establishing a multi-level social security system is the goal pursued by the government.

For example, in the United States, there are generally three levels of security: security provided by the government; security provided by enterprises (employers) and self-security provided by individuals; these three levels of security provide a solid safety net for society.

Among these three levels of protection, the protection provided by enterprises (employers) and the self-protection provided by individuals are directly operated by commercial insurance, and commercial insurance has fully penetrated into the field of social security.

3. The development of commercial insurance directly provides considerable jobs for the society and helps alleviate employment pressure.