Insurance refers to the act in which the policy holder pays insurance premiums to the insurer, and at the same time, the insurer assumes the payment of insurance benefits as stipulated in the contract when certain conditions are met.

Nowadays, insurance can generally be divided into two categories. One is social insurance, such as pension insurance, work-related injury insurance, etc., which is an important part of the social security system established by the country and provides great help for people's health and life security.

The other type is commercial insurance such as property insurance and health insurance, which play a supplementary role in social insurance.

But in the eyes of many people, commercial insurance has a pretty bad reputation. Why is this?

1. Bad reviews of commercial insurance. Whether you are in the insurance field business or in-house support, whether you are an employee or a manager such as a director or person in charge, many people collectively refer to insurance industry practitioners as "insurance sellers."

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In the current social environment, the title "insurance seller" can even be directly heard as a derogatory term.

Many people will have a strange expression on their face when they meet someone who works in an insurance company, and they want to keep a distance from the other person to avoid being approached by the other person to sell insurance to them.

The reason for the current situation is mainly due to sales routines and claims disputes. These two can actually be said to be the same reason.

Insurance sales personnel are essentially a kind of salesperson, selling things, delivering results, and getting commissions.

Therefore, due to insufficient performance or personal knowledge reserves, insurance salespeople did not clearly explain the terms of the insurance to customers during the sales process, or they avoided the important and ignored the light during the communication process and only talked about the advantages, causing customers to have misunderstandings about the insurance they purchased.

Moreover, the contents of insurance agreements generally last for dozens of pages, and few customers can read them completely or understand them.

Once a customer makes a claim and finds that their understanding is different or there is an error, they will feel like they have been deceived.

At this time, I went back to find the original sales staff, and many of them no longer work there!

Therefore, many people now think that insurance is an IQ tax, and "selling insurance" is a derogatory term.

People even joke that there are only two situations in which commercial insurance will not pay - it will not pay for this, and it will not pay for that!

2. Will the insurance policies of customers be affected if the insurance company goes bankrupt?

Recently, someone uncovered cases of insurance company failures, and people have deepened their doubts about the insurance industry after seeing this.

In the history of our country, three insurance companies filed for bankruptcy liquidation in the past year, namely Oriental Life in 2001, Guosen Life in 2005, and most recently, on September 14, 2020, Anbang Insurance Group applied for bankruptcy liquidation.

Take Anbang Insurance as an example. At its peak, Anbang Group's assets reached RMB 2 trillion, making it the third largest insurance group in China after China Life and Ping An, and ranked among the world's top 500 companies.

However, because its founder Wu Xiaohui used illegal means to acquire some small insurance companies during the company's development and expansion, he was eventually sentenced for fraud and fined 10.5 billion.

Subsequently, the China Insurance Regulatory Commission took over the Anbang Group. During the two years of the takeover, it injected 60.8 billion in capital and approved the establishment of Jiajia Insurance Group in June 2019. The China Insurance Regulatory Commission minimized the impact of the Anbang Chairman incident.

In September 2020, Anbang Group completed its liquidation and announced the dissolution of the company, and Dajia Insurance Group took over all subsequent matters.

This case illustrates that when an insurance company goes bankrupt due to poor management, it will not go away like other ordinary companies. Instead, the China Banking Regulatory Commission will intervene and arrange for a capable insurance company to take over.

Also, when an insurance company is established, there will be a deposit to be used for remediation at critical moments.

If the company goes bankrupt, the money is used to compensate customers for losses and expenses.

As of the end of 2021, my country's insurance industry still has more than 180 billion in guarantee funds.

So even if the insurance company goes bankrupt, the customer's policy will not be affected.

3. Financial insurance and consumer insurance Since commercial insurance exists, it has meaning.

If you don't consider the configuration at all, it doesn't matter how you look at it.

If you have plans to configure insurance, instead of thinking about whether the insurance company will go bankrupt, it is better to understand the classification of commercial insurance.

Commercial insurance includes medical, accident, critical illness and other categories, but it can generally be divided into financial insurance and consumer insurance.