What is dividend insurance?

Dividend insurance refers to a kind of life insurance in which the insurance company distributes the distributable surplus of this kind of dividend insurance in the previous fiscal year to customers in a certain proportion in the form of cash dividend or value-added dividend after the end of each fiscal year.

According to the statistics of the China Insurance Regulatory Commission, dividend-paying life insurance, dividend-paying endowment insurance, dividend-paying all-inclusive insurance and other types of insurance with dividend-paying functions are all included in the scope of dividend insurance.

Dividend insurance originated from the risk of changes in the fixed interest rate and market yield of the policy, which will be shared by the insured and the insurance company for a long time to come.

Dividend insurance is an effective means for life insurance companies all over the world to avoid interest rate risk and ensure stable operation. Compared with the traditional guaranteed life insurance policy, the dividend policy provides non-guaranteed insurance benefits to the insured, and the distribution of dividends will also affect the debt level, investment strategy and solvency of the insurance company.