Insurance must meet the following characteristics:

1, insurance is the behavior of gathering most units or individuals: insurance is an activity with the nature of social and economic mutual assistance, which embodies the spirit of "everyone for me and I for everyone". Insurers of thousands of households with the same insurance pay insurance premiums and pool together to share the economic losses of a household.

2. Insurance is responsible for agreed disasters and accidents: insurance covers losses caused by various natural disasters and accidents, but insurance does not cover all the dangers in the world, but covers a certain range, that is, the insurance liabilities listed by the insurance company or the dangers or events specially agreed by the parties to the contract. The agreed danger range is wide, including natural disasters, accidents and personal accidents; Agreed events, mainly personal insurance, refer to people's birth, old age, illness, death and disability.

3. Use scientific calculation method: Through the law of large numbers, the danger can be predicted more accurately and the reasonable rate can be calculated. The premium rate is suitable for the frequency of accidents and the degree of damage. In this way, the insurance business is fair and reasonable and meets the basic requirements of commodity economy.

4. Set up a special fund: a special fund composed of insurance premiums (or savings) paid by the insured is the basis for the insurer to fulfill its obligations of compensation and payment (or return).

5. Economic compensation or payment of insurance organizations: The purpose of insurance is to reduce uncertainty and ensure the stability of economic life. The insurer is the undertaker and organizer of economic compensation and insurance payment.

6. Insurance is an economic form: insurance is an indispensable part of the national economy, which embodies a special distribution and redistribution relationship in the national income distribution, and realizes its economic compensation and payment functions through the operation of money (insurance fund).