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

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

According to Caixin, in order to protect consumer rights and enhance the feasibility of the illustrated interest rate, the upper limit of the illustrated interest rate for 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 life insurance companies should avoid “speculative suspensions.”

At the same time, all life insurance companies need to reasonably determine the actual dividend level for the year 2025, adhering to the principles of “matching assets and liabilities, financial and actuarial hard constraints, investment returns supporting dividends, and sustainable dividend levels,” and conduct adequate verification of the proposed annual dividend level. Data shows that the rolling average financial return rate of the life insurance industry has remained stable over the past three years, at around 3.2%.