Core Viewpoint - The article discusses the differences between social insurance and commercial insurance, highlighting their distinct characteristics, objectives, and operational frameworks [1][2][3]. Group 1: Nature and Purpose - Social insurance is characterized by its mandatory and welfare-oriented nature, implemented by the state to ensure basic living standards and social stability for citizens [1]. - Commercial insurance operates on a voluntary basis, aiming for profit, allowing customers to choose insurance products based on their needs and financial capabilities [1]. Group 2: Coverage and Beneficiaries - Social insurance covers all citizens or specific groups, such as employees in basic pension and medical insurance schemes, ensuring broad and universal coverage [2]. - Commercial insurance, while open to individuals and legal entities, involves selective underwriting based on health, occupational risks, and financial status, leading to a more tailored approach [2]. Group 3: Benefit Levels - Social insurance provides basic coverage aligned with national economic conditions, typically below the average living standards, addressing essential needs in various life situations [2]. - Commercial insurance offers varying levels of coverage based on product types and insured amounts, allowing policyholders to select plans that exceed basic coverage levels [2]. Group 4: Funding Sources - Social insurance funding comes from government subsidies, employer contributions, and individual payments, with the government providing support through tax incentives and fiscal allocations [3]. - Commercial insurance funding is entirely borne by the policyholders, who pay premiums based on the chosen insurance products [3]. Group 5: Management and Administration - Social insurance is managed by government departments responsible for policy formulation, implementation, and oversight, reflecting its administrative and public service nature [3]. - Commercial insurance is operated by private insurance companies that function under market principles, focusing on economic efficiency and risk management [3].