Short-term main reasons of health insurance

In Chinese mainland, commercial insurance is divided into personal insurance and property insurance according to the subject matter of insurance, which is easy to understand. However, in most western countries, commercial insurance is divided into life insurance and non-life insurance, and the relevant documents of WTO also support this division. The main reason is that health insurance and accidental injury insurance are closer to property insurance than life insurance in actuarial standards and financial treatment principles, so these two types of insurance are called "the third field" in insurance theory, allowing life insurance companies and property insurance companies that meet the corresponding conditions to operate, which is also a relatively common practice in the world at present. Therefore, the current insurance law allows property insurance companies approved by the CIRC to operate short-term health insurance and accident insurance. The reason why short-term health insurance is emphasized is that long-term health insurance has certain characteristics of life insurance business, so long-term health insurance is currently only allowed to be operated by life insurance companies.

In the final analysis, it is precisely because of the characteristics of health insurance and accidental injury insurance that there are both connections and differences with traditional life insurance and property insurance, so this arrangement has been made.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.