What's the difference between Zhonghui and traditional insurance companies?

Zhonghui Mutual was established on February 20 14 17. It is the first national mutual insurance organization in China approved by the State Council and China Banking and Insurance Regulatory Commission.

Mutual insurance organization is a representative form of insurance organization with a long history. It is an institutional arrangement to organize people with homogeneous risk protection needs to provide self-insurance services in accordance with the principle of equality and mutual assistance, with the aim of meeting the insurance needs of members, rather than obtaining investment returns.

Mutual insurance organizations are owned by the insured, and the insured becomes the owner of the company based on the insurance contract. As a member of the company, they make decisions according to the principle of democratic management, which has the distinctive characteristics of equality, mutual trust and common governance. Compared with joint-stock insurance companies, mutual insurance organizations have obvious differences in organizational form, organizational structure, business objectives and distribution mechanism.

Compared with the traditional forms of insurance, mutual insurance has some unique advantages: first, mutual insurance can effectively prevent moral hazard through independent management and mutual supervision of the insured members. Second, the cost of mutual insurance exhibition industry may be lower, and the accuracy of nuclear disaster loss judgment is higher, which can greatly reduce operating costs and provide insurance protection at a lower price. Third, because there is no profit pressure, mutual insurance can develop insurance that is beneficial to the long-term interests of the insured without pursuing short-term commercial profits, better protect the interests of the insured, and especially help to explore insurance for low-income people and high-risk areas.

Therefore, Zhonghui is an insurance institution established according to the above mechanism, which is essentially different from traditional insurance companies. But Baidu knows more.