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There are different understandings and even debates about the definition of insurance, or about the essence of insurance, and there are more than a dozen schools. These schools can be roughly summarized into three categories: first, the loss theory, that is, the concept of loss compensation is used to clarify the nature and define insurance; The second is dualism, that is, property insurance and life insurance are different in nature, the former aims at economic compensation and the latter aims at paying a certain amount, while life insurance is no-loss insurance; The third is the theory of no loss, that is, to seek the explanation and definition of insurance from the outside of loss. With the development of insurance theory and practice, risk management is widely recognized and accepted, and loss theory is also recognized by most scholars.

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