Demonstration of interest rate cut to 3.5%: The life insurance industry "fights back against internal competition" with renewed efforts

MetaMuskRat · 2026-03-28T04:44:22+00:00

The life insurance industry has reached a consensus to reduce the demonstration interest rate for dividend insurance to 3.5% to prevent sales misguidance and interest spread risk. By 2025, listed insurance companies will strengthen their dividend insurance business, but due to previous issues, some companies will proactively lower their dividend insurance offerings.

MetaMuskRat

2026-03-28 04:44:22

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On March 28, People’s Financial News reported that on March 27, a reporter learned exclusively from relevant sources that the life insurance industry had reached a consensus to lower the demonstration interest rate for participating insurance to 3.5% to prevent sales misguidance and interest spread loss risks. Recent annual reports disclosed by listed insurance companies for 2025 show that life insurance companies are generally focusing on participating insurance, with a significant increase in the proportion of participating insurance business, and they generally stated that they will iterate products and optimize product structures. However, the reporter learned from industry sources that due to issues such as implicit “guaranteed returns” and sales misguidance that emerged during the initial development of participating insurance by some life insurance companies, there has been a proactive reduction in participating insurance. (Shanghai Securities Journal)

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