<p>This study evaluates the insurance-like effects of brand equity and corporate social responsibility (CSR) on the financial value of firms affected by Chinese product-harm crises. It also explores how socio-cognition influences insurance mechanisms within this collectivist society. The results find that the financial losses of a crisis are contingent upon its severity, with less serious events failing to generate meaningful valuation declines. Both brand equity and CSR can mitigate financial losses and offer insurance-like protections for affected firms. However, CSR demonstrates a stronger insurance-like effect on financial value because of the socio-cognition in this collectivist society. The findings presented herein support the argument that cultural socio-cognition can contribute to investor judgments and provide a theoretical basis for understanding the role of cultural socio-cognition in insurance mechanisms. In doing so, this study validates the distinct insurance-like effects of brand equity and CSR on financial value, while establishing cultural socio-cognition as a moderating factor in risk management, thereby expanding the theoretical boundaries of risk management. Additionally, it offers practical guidance for firms operating in diverse markets.</p>