Core Viewpoint - The article discusses the reality of insurance company bankruptcies in China, emphasizing the importance of consumer awareness and risk identification in the face of potential financial instability within insurance firms [1][12]. Group 1: Industry Overview - As of June 2025, there are over 170 insurance companies in China, managing insurance funds exceeding 25 trillion yuan, which is critical for many families' financial security [3]. - Recent years have seen several insurance companies, such as Dongfang Life and Anbang Insurance, face bankruptcy or government takeover, highlighting the inherent risks in the insurance sector [1][3]. Group 2: Risk Identification - Understanding the nature and process of insurance company bankruptcies is crucial, as these events typically result from long-term mismanagement and financial instability [3][5]. - Key indicators for assessing an insurance company's risk include solvency ratios, shareholder background, operational performance, and public sentiment [5][6][11]. - The average solvency ratio for Chinese insurance companies was 235.7% as of Q1 2025, significantly above the 100% minimum requirement, but companies below 150% should be closely monitored [5]. Group 3: Consumer Strategies - Consumers should remain calm and avoid hasty decisions if their insurance company shows signs of financial trouble, as policies are not immediately voided upon government intervention [7][10]. - It is advisable for consumers to stay informed through official announcements from regulatory bodies regarding their insurance company's status [7][10]. - Establishing a diversified insurance portfolio can mitigate risks associated with relying on a single company [8][10]. Group 4: Choosing Insurance Companies - When selecting an insurance provider, consumers should prioritize large, stable companies with strong capital and risk management capabilities [10][11]. - The top ten insurance companies in China hold over 65% of the market share, indicating a concentration of stability within the industry [10]. - Companies that focus on their core insurance business rather than diversifying into high-risk areas tend to be more reliable [11].