Why people do not buy insurance Lang Xianping said "buy insurance is the biggest uninsurance"

Why don't Chinese people buy insurance?

Data shows that China's per capita insurance policy is only 0.6, and there is a big gap with foreign per capita insurance policy of more than 5. According to the People's Bank of China released the "2012 China Regional Financial Operation Report" shows that in 2012 China's insurance density of 1,144 yuan, the depth of insurance is 3%. In developed countries, the insurance depth of the insurance market has reached about 12%, and the insurance density has usually reached 2,000 to 3,000 dollars. This means that China's per capita premium is still less than one-tenth of the developed market.

Investment and finance Wu Hui

Recently, the topic of retirement continues to heat up. The debate over "home-based retirement" and comments that "insurance companies are unreliable for old age" have put ordinary people on tenterhooks. According to data released by the Ministry of Civil Affairs in the first half of this year, as of the end of 2012, China's elderly population aged 60 years or older has reached 194 million, accounting for 14.3% of the total population, and is expected to reach 243 million in 2020, and will exceed 300 million in 2025.

Analysts pointed out that at present, China is facing the problem of insufficient pensions has emerged, and the question of how to retire will become increasingly prominent. "To solve China's pension problem, not only the government should think of ways, the people themselves should also find a way out." And insurance, is one of the ways out.

In China, the insurance industry after decades of development, buy insurance has long been no novelty, more and more people realize that they should use insurance to add a protection for their families. For many people who have bought insurance, buying insurance is both buying the future and a way of financial management. The reality is that although people have a certain financial ability to buy insurance, but the public willing to buy insurance is still a minority, especially in the second and third-tier cities or more remote areas, most families are still in the insurance gap.

Wang Ping, already 30 years old, got married on May 1 last year, and after the marriage, the two of them lived a harmonious life, basically no quarrels. But one day, this harmony between the couple was broken because of insurance!

Wang Ping said: "Not long ago, we plan to have children. It was during this period that my daughter-in-law met an insurance seller in the hospital, and it was at this point that our differences sowed the seeds of trouble."

During Wang Ping's wife's preparation for pregnancy, this insurance agent would talk to his wife about insurance from time to time and actively recommended insurance for children. His wife thought it was not bad, so she discussed with Wang Ping that when the baby was born, she would buy an education insurance for her child.

Wang Ping heard, think there is no need to buy the child education fund insurance. "I have a friend who bought the insurance, just because of the midway want to surrender the insurance, the result also lost a large sum of money." In Wang Ping's opinion, even if you want to reserve for your child's school expenses, you can reserve in other ways, not necessarily buy insurance. You should know that if you surrender the insurance policy in the middle of the day, you will lose the insurance money. And give the money to the insurance company to take care of, the insurance company to give the return is not necessarily as much as their own investment to make money.

It is because of the differences in views on insurance, his wife was annoyed with him for a week, which made Wang Ping very depressed, and even felt that the insurance has destroyed the harmony of his family, the insurance is even more resistant.

In China, many people would rather deposit their money in the bank than buy insurance, while the opposite is true abroad. Since foreign banks are private enterprises, people feel that putting money in the bank is not guaranteed, so they prefer to put their money in the insurance company. Moreover, after many years of development, foreign insurance awareness has been deeply rooted in people's hearts.

An industry insider told reporters that foreigners have a very strong sense of their own protection. For example, foreign countries are considering the question of how many and what insurance should be bought, while in some areas of the country, it is surprising that there is still the question of whether to buy insurance. Some data show that Japan's per capita policy in more than 5, some developed countries in Europe and the United States per capita policy even more than 10. And in China, the per capita has only 0.6 insurance policy.

In the industry, the maturity of a region's insurance market is usually measured in terms of insurance depth and insurance density. Insurance density refers to the per capita insurance premiums calculated according to the local population, reflecting the degree of national participation in insurance; insurance depth refers to the ratio of premium income to the gross domestic product (GDP) of a certain place, reflecting the position of the insurance industry in the overall national economy.

The People's Bank of China released the 2012 China Regional Financial Operation Report, which shows that in 2012, China's insurance density was 114 4 yuan, and the depth of insurance was 3%. In developed countries, the depth of insurance market has reached about 12 percent, and insurance density has usually reached 2,000 to 3,000 dollars. This means that China's per capita premium is still less than one-tenth of the developed market.

Even in the Asian market, the level of development of China's insurance market is relatively low. A study shows that the average depth of insurance in Asia has exceeded 6%, Hong Kong, South Korea, Japan and other regional markets, the depth of insurance are more than or close to 10%, much higher than the level of only 3% of mainland China.

Ou Lei, chairman of the board of directors of the well-known insurance giant Deutsche Assurance, said in an interview with reporters that compared with developed countries, China's insurance market, whether it is the density or depth of insurance, there is a considerable gap, and is still in a very early stage of development.

In Ou Lei's view, the insurance penetration rate of China's first-tier cities is already relatively high, and for insurance companies, the future high growth of insurance business will mainly come from second- and third-tier cities. Data show that the insurance density in Beijing and Shanghai has reached RMB 4,572 and RMB 3,497, respectively, while in Shandong, the insurance density is about RMB 1,170.

What is it about insurance that turns Chinese people off, or, as in Wang Ping's case, resists or resents it?

We don't dismiss the idea that there are problems with the insurance industry itself. As economist Lang Xianping says, saving enough for retirement is extremely difficult for many Chinese, "China is running a 'Ponzi scheme' - we're using money provided by the young to pay for the expenses of the previous generation. When the young people retire, there is no money left for them. This is very dangerous." "All along, the insurance industry's poor reputation and bad image have been prominent, mainly manifested in 'three disagreements'." Xiang Junbo, chairman of the China Insurance Regulatory Commission (CIRC), pointed out that the first is disapproval by consumers, the second is disapproval by practitioners, and the third is disapproval by society.

But as far as each family or each individual is concerned, what are the reasons why people are reluctant to buy insurance? This is worth thinking about.

11 Misconceptions about Insurance

Insurance is an essential financial tool in family finance, but there are still many misconceptions in society about buying insurance products. Out of those misunderstandings, set the right mindset, you can clearly buy insurance.

Investment and finance Wu Hui

Buying insurance as a means of investment, expecting high returns

Insurance is a financial tool, but many people take it as a means of investment, expecting to get and invest in the stock market, buy the same fund of high returns. But the fact is that the main role of insurance is to buy insurance products, so that the insurer can get timely and reliable financial compensation or pay insurance benefits when they have suffered a risk loss within the scope of insurance liability.

In recent years, insurance companies have launched investment-type insurance such as participating insurance, universal insurance and investment-linked insurance will also bring some return to investors, because it has a certain protection function, so the return is generally not as good as funds, bonds and so on. Therefore, absolutely can not buy insurance as investment, the insurance must be correct mindset, do not focus on return, light protection, do not put the cart before the horse, the function of insurance.

Insurance is used to make money

Is insurance a money-making tool? Obviously, this is a question that almost every policyholder would like to clarify. Simply put, the protection of term life insurance and whole life insurance policy has little to do with making money, universal life insurance and investment insurance policy has some investment function, how to grasp the balance of protection and investment in a policy, it becomes a difficult technical work.

Experts pointed out that insurance is not a short-term profit-making tool. As one of the three main financial tools of insurance, it is one of the financial means alongside banks and securities.

As long as the insurance can provide protection

In real life, there are often people think that as long as they are insured, they should get the protection, and in the event of an accident to get a claim, but in fact, the scope of the insurance coverage with our imagination is not the same as, for example, the insurance company is willing to pay for the "major illnesses" and the real "risk of major illnesses" in our lives. The actual "major disease risk" is not a concept, many diseases are in its exemption scope.

It's bad luck to buy insurance

Because insurance is all about life and death, it's a taboo for many people who think it's bad luck to buy insurance. No one wants to encounter death, disability, illness, car accidents and other disasters, but the sky is the limit, who can guarantee that these disasters will not happen to them? Needless to say, buy insurance is to deal with these accidents and disasters, in a sense, buy insurance is to buy peace.

Selling insurance is fooling people

We do not deny that a few insurance marketers in the sale of insurance products, there are exaggerated product features and yield phenomenon, misleading some of the policyholders. However, insurance products are absolutely not something to cheat people, and insurance companies are constantly improving the quality of practitioners, the phenomenon of fooling people is gradually decreasing, we must not use this to deny the value of insurance products.

Buying insurance is saving

Regular readers call the insurance company to consult: "I want to buy insurance, that is, the kind of savings, may I ask which kind of insurance is good?" In fact, the connotation of insurance is much richer than savings. In addition to the so-called savings function, it is the main protection, is a defensive product, but also a major event in life planning; is a responsibility, but also a tool to resolve the risk of old age, sickness, death and disability. A person should coordinate a lifetime of risk defense, and do a good job of preventing life being changed planning may be more important.

Insuring consumer insurance is a big loss

Many people think that buying insurance, such as peace of mind, should return premiums, if there is no return of premiums, there is always a feeling of loss. For example, Taikang Life's Century Taikang Individual Hospitalization Medical Insurance pays an annual premium of 1,101.77 yuan, and if it encounters a hospitalization medical situation within the scope of the insurance contract, it can enjoy 337,250 yuan of medical protection every year. With such a low premium, high protection and no return, do you also feel shortchanged?

In fact, there is no best insurance in this world, only the most suitable insurance. Therefore, there is no need to calculate how to buy insurance not to lose, the most "cost-effective", only to buy the type of insurance suitable for their own, for you is the best.

Investment-type insurance can be bought

Investment-type insurance is a product between insurance and investment products, mainly refers to the investment-linked insurance products and universal insurance products. It should be emphasized that the investment-linked insurance products to make the premiums paid for the distribution, part of the money to do the basis of protection, part of the investment in financial management, between consumers and insurance companies, there is a commission and fiduciary relationship, this insurance has changed the traditional insurance relationship, evolved into a fiduciary relationship similar to the relationship. Therefore, not everyone is suitable to buy investment insurance products.

Customers who buy investment-based insurance products must be well-educated, have basic knowledge in this area, have a clear understanding of their own needs, have a certain degree of risk tolerance, and preferably be middle- to high-end consumers.

Already have social security, no longer need commercial insurance

Social security is characterized by a low level, wide coverage, once the disease to the doctor incurred medical costs, the individual also need to bear a part. If you suffer from a major disease or accident, its huge expenses will have a greater impact on the normal life, this time, commercial insurance is the necessary supplement to social security.

And our country's social pension insurance protection degree is relatively low, after retirement from the social security pension is only enough for the daily basic needs of life, and with commercial insurance, you can from the insurance company to receive more pension, improve the quality of life.

Insurance companies do not go out of business

Many insurance agents often equate insurance companies with banks and other financial institutions when they talk to customers about insurance products, saying that they will not go out of business. However, this is not the case. Finance is a commodity as well as a service, and financial institutions can fail. Insurance is one of the financial institutions, and it is normal for them to fail. It just means that insurance companies are not allowed to collapse or go bankrupt straight away, there will be other companies to take over.

Heavy on children's insurance and light on adults' insurance

Many parents will choose to buy insurance for their children and neglect to buy insurance for themselves. In fact, the principle of insurance should be "first adult, after the small that". The adult is the economic pillar of the family, but also the child's dependence. Adults bear the responsibility and may suffer from accidents and illnesses are more likely than children, once the unfavorable situation, the family life may have problems, let alone pay the children's premiums. Therefore, it is more important for adults to insure themselves than to insure their children.