In recent years, as people pay more and more attention to their own safety, China's insurance industry has also begun to meet the luck.

When people buy insurance, they only need to pay a certain fee to the insurance company, and they can pass on the risk. Once there is a contractual loss, the insurance company will give the corresponding compensation.

And with the continuous expansion of people's needs, insurance is also divided into many kinds, such as car insurance, life insurance, pension insurance, medical insurance and so on. In other words, in the concept of many people, as long as they buy insurance, they prove that they have a guarantee.

However, many people overlook the question: what happens if the insurance company goes bankrupt?

This is not scaremongering!

Because so far, there have been three major domestic insurance companies declared bankruptcy, they are Anbang, Guosen and Oriental Life.

You know, one of the insurance companies is even as large as 2 trillion yuan, but even so, it did not change its fate of bankruptcy.

So, people are worried, if the insurance company goes bankrupt, what will happen to the policies of ordinary people?

When you buy insurance, you protect your personal safety, life safety and property safety, but do you think about who will protect your insurance policy? What is the safeguard mechanism behind it? Let's take a look at:

01 Many problems facing the insurance industry

In the past 20 years, China's insurance industry has achieved a rapid development, whether in the supply side or the demand side, has achieved rapid improvement.

However, the long-term rapid development has also brought many problems to this industry.

For example, in recent years, due to the impact of the epidemic on all walks of life, the profits of domestic enterprises have fallen sharply, and even business difficulties have fallen into bankruptcy risk.

Including the real estate field, which has always been recognized as the most stable investment, now the profit benefit has begun to gradually weaken, and even the possibility of loss is constantly amplified.

And the capital market, many years of 3000 basement jumping, it seems that always can not change this situation, in this market investment risk intensification, the possibility of loss has been more and more.

Under such a big background, corporate investors, institutional investors and individual investors are all facing huge risk of loss, and insurance companies are no exception.

For example, the current insurance companies are also facing the depletion of tactical dividends, the slowdown of premium growth at the debt end, and the long-term interest rate decline and the duration gap test at the investment end. Even individual insurance companies deviate from the main business, corporate governance serious defects, and then fall into the risk of bankruptcy.

02 Post-bankruptcy treatment

As we all know, if the bank goes bankrupt, the common people will have less than 500,000 yuan in principal and interest; But few people know that if the insurance company fails, then who will "cover" the insurance policy?

On this issue, we have to talk about China's insurance protection fund, which was established in 2008, the purpose of the establishment is to detect and dispose of insurance industry risks, to protect the rights and interests of insurance consumers.

In that year, China also issued the "Insurance Protection Fund Management Measures", and made clear provisions on how to raise the insurance protection fund, how to supervise it, and when it can be used.

To put it simply, after the insurance company receives the premium, it will hand over part of it to the insurance protection fund for unified management, and if any insurance company really has a problem in the future, the insurance protection fund will rescue, or directly compensate the consumer. (Somewhat similar to a bank's reserve requirement)

In history, the insurance protection Fund has done a total of four rescues, respectively rescued New China Insurance, China United Property Insurance, Anbang insurance and Yi 'an Property insurance.

In other words, after everyone has bought insurance, once there is a problem with the insurance company, there is basically an insurance protection fund to cover the bottom.

Moreover, with the continuous growth of the size of the insurance protection fund over the years, its ability to cover the bottom is also getting stronger and stronger, such as when the economic scale was just 14.9 billion, by the end of last year, the fund size has increased to 182.998 billion yuan, it can be seen that its "cover the bottom strength" is also constantly increasing.

03 Insurance protection Fund "cover" scope

Although the Insurance Protection Fund has a very high "backstop" ability, it does not mean that all problems will be carried out in this way, under the current provisions, if one of the following three situations occurs, the insurance Protection Fund can be used:

First, the insurance company is cancelled or bankrupt according to law, and its liquidated assets are insufficient to repay the benefits of the policy;

Second, insurance companies identified by relevant departments as having major risks that may seriously harm social public interests and financial stability.

Third, other circumstances approved.

This also means that as long as the insurance company meets the above three conditions, basically all the insurance policies of the company will be covered by the insurance protection fund, and the rights and interests of customers will be protected.

Of course, there is usually a process during this period, which is roughly like this:

First, the new company usually takes over first.

If after the bankruptcy of the insurance company, some other insurance companies are willing to take over the company's policies or buy or merge the company, then all the policies of the company will be transferred to the new insurance company according to the normal process, which will assume the customer's policies and ensure that the rights and interests of the customer will not be damaged.

Second, if you don't have a recipient, you're gonna start talking about it

If there are no new insurance companies willing to undertake, and no insurance companies willing to acquire, then, if the problems of insurance companies meet the above three conditions, then the Insurance Protection Fund will finally come forward to identify new companies that can take on these policies, and then transfer these policies to the name of the company.

Of course, during the period when regulators seek new insurance companies, they will also protect the reserves and insurance contracts paid by customers, and effectively protect the legitimate rights and interests of customers.

In short, with the intensification of global uncertainties, no one can be sure that an insurance company will not go bankrupt, but even so, it does not mean that people who buy policies must not have rights and interests protection.

This is because the Insurance Protection Fund will also protect the policy rights and interests of consumers.

However, considering the confidence of the people in insurance, it is still necessary to have corresponding policies and institutions to protect the policies of the people and protect the rights and interests of the people from many aspects, so that everyone can be more assured to buy insurance. Do you agree with that? Agree to like!