The insured can share the insurance coverage of the operating results of the insurance company, and the insured has the right to receive dividends based on the operating results of the insurance company every year. Simply put, it is to pay dividends and enjoy the company's operating results.

Definition: refers to the life insurance products distributed by insurance companies to policyholders according to a certain proportion, and their actual operating results are better than the surplus assumed by pricing.

The bonus of extended data dividend insurance comes from the "three differences income" of life insurance companies, that is, death difference, profit difference and expense difference. Dividend distribution methods mainly include cash dividend method and incremental dividend method. The two methods of surplus distribution represent different distribution policies and dividend-sharing ideas, and reflect different transparency and fairness.

The impact on policy assets share, liability reserve and cash flow of life insurance companies is also different. Therefore, in order to safeguard the interests of the insured, life insurance companies should take a very cautious attitude towards the formulation and change of dividend distribution methods. They should not only pay attention to the reasonable expectations of policy holders, but also implement the fair principles of honest management and dividend distribution, and fully consider the impact of dividend distribution on the company's future dividend level, investment strategy and solvency.

References:

Baidu encyclopedia-dividend insurance