保险Ⅱ行业深度报告-中国人身险产品变迁历史与未来展望系列报告（三）

Summary of Insurance (II) Industry Report

Key Points:

In the face of changing external environments, China's life insurance market has entered a critical development stage. This report examines historical product changes, overseas experiences, and future strategies for Chinese insurers.

Strategies for Adapting to Falling Long-Term Rates:

• Shifting from Interest Spread: Referring to Japan's experience, insurers can transition toward mortality spread and expense spread profits to offset shrinking interest spreads. This involves promoting health and protection-focused products like term life insurance in line with public healthcare system reforms.
• Leveraging Expense Spread: Following U.S. practices, increasing sales of variable-linked products (e.g., variable annuities) can enhance fee-based profits, allocate liability costs to policyholders, and improve financial resilience.

Development of Health and Medical Insurance:

• Term Life Insurance: High-leverage products with low premiums and high coverage are tailored to meet clients' needs amid economic pressure.
• Medical Insurance Ecosystem: Building a comprehensive product matrix ("low-end healthcare + mid-tier + high-end") through "Insurance + Technology + Services" allows insurers to address diverse medical needs and support better health management.
• Challenges & Opportunities: Policies like "Huiminbao" cater to low-income and elderly populations, while long-term health insurance faces adoption barriers but offers significant growth potential.

Maintaining Interest Spreads:

• Flexible Gain Products: Variable-yield products such as variable universal life insurance help maintain spreads even with declining investment returns.
• Equity-Linked Annuities: Convertible interest-only products and variable annuities attract customers sensitive to low fixed yields, while financial benefits like tax exemptions enhance their appeal.

Industry Outlook:
Although China's life insurance density and penetration lag behind global averages, the space for growth remains substantial. Future success depends on insurers' ability to innovate products, integrate technology, meet regulatory needs (e.g., long-term care insurance), and counter ongoing interest rate declines.