First of all, insurance products are scientifically priced through actuarial technology, which embodies a financial service. All of them have been approved and put on record by the China Insurance Regulatory Commission, and the price and value of the products are equivalent. Among them, the part used for sales expenses only accounts for about 5% of the total product income; And MLM products are "high price and low quality", and the entrance fee is paid to MLM personnel.

Secondly, the profit model of life insurance companies is obviously different from that of illegal pyramid schemes, which rely solely on attracting people to charge high membership fees to make profits. Secondly, the life insurance marketing system encourages "distribution according to work", while illegal pyramid schemes attract people with high returns as bait and attract people as the direction of interest distribution.

Finally, the relationship between the insurance head office and the branches in various provinces and cities is administrative subordination, not "up and down" interest relationship. The whole MLM organization is a big "pyramid" structure, and its essence is the illegal interest relationship of "upper and lower lines".

We should attach great importance to the phenomenon that individual agencies in some areas are suspected of illegally selling insurance products by pyramid schemes, which should attract the attention and punishment of the industrial and commercial departments.

On the one hand, insurance companies should strengthen the daily management, education and training of life insurance salesmen, prohibit salesmen from carrying out illegal pyramid selling activities part-time, and strictly distinguish marketing teams from pyramid selling organizations and marketing pyramid selling behaviors to avoid adverse effects on the industry image and team stability.

On the other hand, pay close attention to insurance institutions and illegal organizations using pyramid schemes to sell insurance products approved and filed by the CIRC, or fabricate insurance products. Once such signs and problems are found, measures should be taken quickly to investigate or ban them in conjunction with public security, industry and commerce departments.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.