Adjustment of Assumed Interest Rates for Life Insurance Products: Industry Impact and Consumer Responses

Policy Background and Evolution

In recent years, the pricing interest rates for life insurance products have undergone multiple dynamic adjustments. Regulatory authorities have establishedLinkage and dynamic adjustment mechanism between guaranteed interest rates and market ratesSubsequently, pricing interest rates became more aligned with market levels, enabling more effective management of industry spread loss risks.

From an industry-wide perspective, a reduction in the assumed interest rate means that premiums for long-term life insurance products will increase under the same coverage obligations.The appeal of savings products has also declined.。

Impact on Industry and Products

This adjustment impacts the industry in the following ways:

• The cap on pricing interest rates for standard life insurance products has been lowered, with a smooth transition to newly filed products.
• The share of floating-return products such as participating insurance and universal life is expected to increase.
• Insurers face reduced liability cost pressures and enhanced operational stability.

How consumers can respond

For consumers, coverage should align with core needs. Follow these steps to review:

1. First, identify gaps in your family's protection and prioritize securing coverage with products like medical insurance and critical illness insurance.
2. For long-term savings, consider participating policies and other floating-return products.
3. Choose a term based on your repayment capacity to avoid over-leveraging.

Please note that all product return demonstrations are hypothetical.Subject to the terms of the insurance policy.。