Insurance and guarantees

Guarantee in order to guarantee the realization of claims and legal measures. From the content of China's security law, the debt security should be said to refer to the parties to a certain property as the basis, can be used to urge the debtor to fulfill the debt, to ensure the realization of the claim method. Guarantee law on the guarantee, also known as claim security, debt security, debt security, is a general concept, rich in connotation, the extension is very wide. Simply put: for the debtor to assume responsibility for the guarantee measures.

From an economic point of view, insurance is a financial arrangement to apportion accidental losses and provide economic security. The policyholder pays premiums to purchase insurance, in effect, transforming the uncertainty of the large losses he faces into the certainty of a small amount of expenditure, and transforming the future large or ongoing expenditure into the current fixed expenditure. Through insurance, the capital efficiency of the policyholder is improved and thus it is considered as an effective financial arrangement. The characteristics of insurance as a financial arrangement are particularly evident in life insurance. This is because life insurance also serves the purpose of saving and investing and has the character of financial management. It is in this sense that insurance companies are financial intermediaries and the insurance industry is an important part of the financial industry. Simply put: a small amount of money for a large amount of money to prepare measures to implement the transfer of risk.