Some insurance companies are proactively lowering the guaranteed interest rate for dividend insurance to 1.25%

Recently, a life insurance company has launched a dividend insurance product with a guaranteed interest rate of 1.25% (hereinafter referred to as “dividend-linked insurance”), which has drawn substantial attention in the market. This is because the design is lower than the industry-standard “top-end” benchmark. According to regulatory requirements, the maximum guaranteed interest rate for dividend-linked insurance is 1.75%, and most mainstream products in the industry are largely designed to be “at the top.” Reporters learned from industry insiders that, as of now, multiple insurers have already set aside dividend-linked insurance products with a guaranteed interest rate of 1.25%, and more similar products are expected to be launched later. Industry insiders believe that when insurers voluntarily lower the guaranteed interest rate for dividend-linked insurance, it is the result of multiple factors working together, including the macro interest-rate environment, regulatory frameworks, and the industry’s operating logic. (Securities Daily)