Exclusive | Dividend insurance demonstration interest rate to be lowered soon, possibly from 3.9% to 3.5%

[Caixin] The current absolute “darling” of the personal insurance market—participating insurance—is about to see an adjustment in its demonstration interest rate.

According to Caixin, to protect consumer rights and enhance the feasibility of the demonstration interest rate, the upper limit for the demonstration interest rate of participating insurance may be lowered from 3.9% to 3.5%. New products will be implemented immediately, while existing products will be given a certain transition period, but all personal insurance companies should avoid “speculative suspensions.”

At the same time, personal insurance companies need to reasonably determine the actual dividend level for the year 2025, following the principles of “asset-liability matching, financial and actuarial hard constraints, investment returns support, and sustainable dividend levels,” and fully justify the proposed annual dividend level. Data shows that the rolling average financial return rate of the personal insurance industry has remained stable over the past three years, at about 3.2%.