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jimu news reporter xu wei

according to previous regulatory requirements, starting from september 1, the upper limit of the scheduled interest rate for newly registered ordinary insurance products is 2.5%. the reporter learned that many insurance companies have stopped selling ordinary insurance products with a scheduled interest rate of 3.0% before september 1, and have launched new products with a scheduled interest rate of 2.5%, including annuity insurance, whole life insurance, and critical illness insurance. industry insiders said that under the background of falling interest rates, the investment yield of insurance funds continues to be under pressure, and reducing liability costs is an inherent requirement for asset-liability matching. the reduction in the scheduled interest rate will help reduce the liability costs of life insurance companies, resolve the risk of interest rate spread losses, and promote the healthy and sustainable development of the industry.

newly launched insurance products are experiencing price increases

in august this year, the state financial supervision and administration bureau issued the "notice on improving the pricing mechanism of life insurance products" (hereinafter referred to as the "notice"), which clearly stated that from september 1, the upper limit of the scheduled interest rate of newly registered ordinary life insurance products will be adjusted to 2.5%, and the relevant liability reserve assessment rate will also be implemented accordingly. at the same time, ordinary life insurance products with scheduled interest rates exceeding the upper limit will be stopped from sale.

an insurance broker told the reporter: "the insurance companies we work with have launched new products one after another, including increasing whole life insurance, critical illness insurance, annuity insurance, etc. recently, we have been training and learning about new products at the morning meetings every day."

for example, icbc-axa life insurance launched a number of new increasing whole life insurance, endowment insurance, and critical illness insurance products; china-uk life insurance launched a whole life insurance product; ccb life insurance launched a new increasing whole life insurance product; and fosun united health launched a number of critical illness insurance products. the protection liability of some newly launched products has been upgraded compared to the previous ones. for example, some children's critical illness insurance has added basic protection liability, special medical services, expert video consultation and other value-added services.

for consumers, the price of insurance products may rise after the scheduled interest rate is lowered. the above-mentioned insurance broker told reporters that this adjustment has a more significant impact on long-term products with an insurance period of more than one year. the prices of some protection products will increase. for example, for a 30-year-old woman with a 500,000 yuan insurance coverage, the premium is mostly between 12,000 yuan and 13,800 yuan according to a 30-year payment period. compared with before the scheduled interest rate adjustment, the price has increased by 1,100 yuan to 1,700 yuan, an increase of 10% to 14%.

in addition, children's lifelong critical illness insurance products are facing a greater price increase. taking a children's lifelong critical illness product (without death liability) as an example, under the same conditions of 0-year-old insurance and a sum insured of 500,000 yuan, the price will be 2,185 yuan and 2,620 yuan on july 31, 2023 and august 31, 2024, respectively, with price increases of 16% and 20%, respectively.

promote healthy and sustainable development of the industry

industry insiders believe that the reduction in the guaranteed interest rate of insurance products may have an impact on premium income in the short term, but in the long run it will help resolve the industry's interest rate risk and promote sustainable development of the industry.

economist and new finance expert yu fenghui said in an interview with jimu news that the reduction of the guaranteed interest rate from 3.0% to 2.5% will have an impact on both consumers and the insurance industry. for consumers, the yield of new insurance products will be lower, and they will find it less attractive, and will turn to other investment channels, such as bank wealth management, stocks, funds, etc. at the same time, insurance companies will increase premiums to cover future compensation and management costs.

however, for the insurance industry, the reduction in the scheduled interest rate will help insurance companies better control the risk of interest rate spread losses and improve financial stability. insurance companies will reduce their reliance on high scheduled interest rate products, increase the development and promotion of protection products, and promote the industry to return to the essence of protection. at the same time, in order to attract customers, insurance companies will work hard in service and innovation, provide more diversified products and services, and enhance overall competitiveness. overall, this adjustment will help control risks, optimize product structure and improve service quality, and promote the healthy and sustainable development of the industry.

after the price of insurance products has increased, what should consumers pay attention to when purchasing? yu fenghui reminded that when choosing insurance products, consumers should pay more attention to the reputation of the insurance company, service quality and product coverage, rather than just the rate of return. when purchasing, they should choose products that suit them based on their health status, family medical history, financial ability and other factors. they do not have to blindly pursue the highest insured amount or the comprehensiveness of the coverage. compare the products of different insurance companies, consider multiple factors such as coverage, price, and claims service, and make more rational decisions.

(source: jimu news)

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