Insurance is a form of monetary fund movement used by independent units or individuals to deal with emergencies in the process of social reproduction.
Undoubtedly, the operation mode of this monetary fund is that a large number of insured people in society pay relatively little insurance premiums to insurers, and a huge amount of monetary funds have been formed there.
Which insured has an accident within the scope of insurance liability, resulting in economic losses, the insurer will use this part of the money to pay the insured who has suffered losses, and may pay you this year and pay him next year. Therefore, in essence, insurance premium is the part of monetary funds used by the insured to deal with accidents.
It is precisely because the insurance premium is the part of the monetary fund used by the insured to deal with accidents, so the insurance premium expenditure becomes a necessary management expenditure of the insured and is included in the column of production and operation costs or living expenses.
For the development of China insurance industry, it is necessary to confirm this understanding. China is a country that has experienced a long feudal society. When dealing with sudden attacks, we still don't know much about how to use insurance as a modern financial tool.
. Influenced by the traditional concept based on the self-sufficient natural economy, there is often a feeling that if you pay the insurance premium, you will not get compensation, that is, you have spent "unjust money" and suffered losses. You haven't realized that insurance premium is a necessary expense in your own production, operation and life, so people's insurance awareness is not high.
Only when people realize from market economic activities that the expenditure of insurance premium is a necessary expenditure for production, business activities and living arrangements can they raise their awareness of insurance and voluntarily apply for insurance from insurance institutions that meet their own needs.
Only after the society puts forward various insurance needs to insurance institutions can insurance institutions better develop various insurance products that meet the needs of society. Only in this way can our insurance industry grow healthily and actively, and the understanding that paying insurance premiums is regarded as "arbitrary charges" and "arbitrary apportionment" will be eliminated as soon as possible.
Of course, insurance practitioners should persist in doing practical propaganda and actively provide safe, reliable and low-cost insurance services. The improvement of the whole society's insurance awareness can provide strong stamina for the faster development of China's insurance industry. Only by confirming this understanding can we provide theoretical basis for the construction of financial laws and regulations in China.
Insurance expenses of all social production and business units are allowed to be included in the cost, and personal insurance expenses are allowed to be included in the necessary living expenses, so as to find a legal position for the source of insurance expenses.
In some developed countries, personal income tax adopts a tax system combining progressive income tax rate and decreasing necessary expenses, allowing people to include personal pension insurance expenses in their own living expenses, thus reducing the tax bracket, and its theoretical basis is also here. The implementation of this one-person tax payment system has provided strong support for the life insurance industry.