What Is a Health Insurance Cooperative?
An insurance cooperative is a special form of mutual organization. It requires members to pay a certain amount of share capital when joining, and the relationship between the cooperative and the members is more permanent. After the members have subscribed for the share capital, they have the qualifications of members even if they are not the policy holders. Keep close relationships. Generally belongs to a corporate legal person and is a non-profit organization. Insurance co-operatives that have a surplus in premiums for that year should, in principle, be reserved for reserves. Without affecting the payment, you can participate in financial circulation, such as short-term borrowing, postage, loans and so on. In order to improve the efficiency of the use of insurance funds, and enhance the ability of cooperatives to take responsibility for their own profits and losses. If a loss occurs, on the one hand, mutual adjustments can be made between cooperatives. If they are unable to adjust, they can apply to the national insurance company for paid adjustments to ensure their business stability and continuity.
Insurance cooperative
An insurance cooperative is a special form of mutual organization. It requires members to pay a certain amount of money when they join.
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Insurance cooperatives are neither companies nor personal partnerships.
An insurance cooperative is an insurance organization formed by a group of people who have the same protection requirements for a certain type of risk as a voluntary stock. It has the following
1. Insurance cooperatives belong to associations
Insurance co-operatives that have a surplus in premiums for that year should, in principle, be reserved for reserves. Without affecting the payment, you can participate in financial circulation, such as short-term borrowing, postage, loans and so on. In order to improve the efficiency of the use of insurance funds, and enhance the ability of cooperatives to take responsibility for their own profits and losses. If a loss occurs, on the one hand, mutual adjustments can be made between cooperatives. If they are unable to adjust, they can apply to the national insurance company for paid adjustments to ensure their business stability and continuity.
The role of national insurance companies in piloting insurance cooperatives
(1) Insurance companies shall provide services to insurance cooperatives, such as proposing specific trial schemes for cooperatives, helping cooperative organizations establish rules and regulations and designating provisions, training business personnel, guiding business development, and often organizing farmers to listen to report. Actively publicize the importance of agricultural development, agricultural insurance, and the necessity of insurance cooperatives in the agricultural production process in order to raise farmers' insurance awareness and remove obstacles to the development of agricultural insurance.
Accept the reinsurance business of insurance cooperatives to ensure the stability of cooperatives' operations,
For insurance types with higher risks, you can reinsured a few percent, and the general business reinsurance ratio can be 3: 7. However, the reinsurance benefits of both parties must be guaranteed. To ensure the stability of funds, that is, to compensate for losses, improve the credibility of agricultural insurance cooperatives, increase farmers' enthusiasm for insurance, and increase the amount of funds of insurance cooperatives.
(2) While conducting business guidance, supervise the cooperative insurance organizations' correct implementation of the Party's relevant policies, policies and various accounting systems in rural areas. Insurance companies provide some experts to participate but only as a form of advice. Insurance cooperatives themselves hire experts to formulate guidelines and policies from the perspective of farmers, which further reflects the fairness of insurance cooperatives and the will to work for farmers. Mutual supervision is beneficial to better handle agricultural insurance business.
(3) When providing insurance services, the insurance company shall extract a small amount of management expenses according to the agreed proportion in advance. Increasing income has also achieved social benefits. As an insurance company, it serves two purposes, ensuring a positive image for the insurance company.
