Mutual aid insurance is a form of insurance that is voluntarily organized by people with similar requirements and facing the same risks. It is a form of insurance that pays in advance risk loss compensation sharing.

This form of mutual aid has existed in various mutual aid and cooperative organizations in ancient and modern times for the purpose of economic compensation.

The "Decision of the Central Committee of the Communist Party of China on Several Issues Concerning the Establishment of a Socialist Market Economic System" states: "Promote social mutual assistance and develop the commercial insurance industry as a supplement to social insurance."

Social insurance is the most basic insurance sponsored by the government.

With the development of the economy, in order to meet the various needs of different levels of society, social insurance should also be supplemented, which are employee mutual aid insurance and commercial insurance. These two insurances can be called the two pillars of social insurance.

Extended information: The similarities between insurance and mutual aid insurance: 1. Both insurance and mutual aid insurance are conditioned on a certain range of groups; 2. Both insurance and mutual aid insurance have the mutual aid nature of "one person is for many, and many are for one".

The difference between insurance and mutual aid insurance: 1. The mutual aid scope of insurance targets the entire public, while the mutual aid scope of mutual aid insurance is limited to the members of the mutual aid group; 2. The mutual aid of insurance is its indirect consequence rather than its direct purpose.

, while the mutual assistance of mutual insurance is the direct purpose; 3. Insurance is a commercial insurance behavior operated for the purpose of profit in accordance with the principles of commodity economy, while mutual insurance is a non-commercial activity with an economic purpose.

Once you understand the difference between the concept of mutual insurance and commercial insurance, you will understand that mutual insurance companies and commercial insurance companies are just that one is a mutual aid company and the other is a commercial company.