Stock insurance company
Similar to joint-stock companies in other industries, joint-stock insurance companies are established by sponsors according to the company law, which stipulates the number of sponsors, the company's debt limit, the types of shares to be issued, taxes, business scope, company power, application procedures, company license, etc. Company organizations in western developed countries are composed of three power groups, namely shareholders, board of directors and senior managers.
mutual insurance company
Mutual insurance company is also a form of company organization, but it is a non-profit company with no shareholders, and the company is owned by the insured. Therefore, the insured has a dual identity, both as the owner and the customer of the company. Shareholders of joint-stock insurance companies are not necessarily customers of the company. As the owner, the insured of the mutual company can participate in the election of the board of directors, and the board of directors appoints the senior management personnel of the company to specialize in the business operation and management of the company. The insured can share the operating results in the form of "dividends".
Exclusive insurance company
Insurance companies established by industrial and commercial enterprises to provide risk insurance or reinsurance for their own enterprises, affiliated enterprises and other affiliated enterprises. Long-term life insurance, or savings life insurance, has different insurance income and payment methods from general insurance, so its profit mode is also different from general insurance. In some countries with mature insurance markets, the loss opportunities of life insurance companies are much lower than those of ordinary insurance companies.
Long-term insurance contracts are like "lump sum deposit and withdrawal" savings deposits. The contract period between the insurance company and the customer may be as long as 20 years, or it may be until the insured is 60 years old or even 100 years old. Both parties draw up the withdrawal amount due; That is, the amount of life insurance (insured amount). The customer makes contributions on time during the contract period; That is, to pay the premium. The insured amount is generally greater than the total premium, and there is a return income. In fact, its long-term average yield is similar to the bank deposit interest rate. In order to ensure the repayment demand in the future, insurance companies have made "deposit" arrangements for customers, and most of the "deposit" is invested in some long-term bonds.