Reporter Yang Xiaohan
Recently, the State Financial Supervision and Administration Bureau released the operating conditions of personal insurance companies in the first eight months of this year. Data show that in the first eight months of this year, personal insurance companies achieved 497.3 billion yuan in new investment payments (representing universal insurance premiums), a year-on-year increase of 8.4%, maintaining a high growth rate.
Experts interviewed said that universal insurance premiums continue to grow, mainly affected by factors such as rising demand for capital hedging, release of savings demand, and product features.
Universal insurance refers to a personal insurance product that includes insurance protection functions and can add premiums or adjust the insurance amount, establish a separate policy account, provide a minimum income guarantee, and the product name contains the word "universal".
In recent years, due to factors such as industry transformation and growth in savings insurance sales, universal insurance premium income has increased. Data recently disclosed by the State Administration of Financial Supervision and Administration show that universal insurance has maintained a high growth rate despite the overall slowdown in premium income of personal insurance companies.
Specifically, data show that in the first eight months of this year, personal insurance companies achieved original insurance premium income (hereinafter referred to as "premium income") of 3,571.9 billion yuan, a year-on-year decrease of 0.2%, life insurance premium income was 2,975.7 billion yuan, a year-on-year increase of 0.04%, and accident insurance, health insurance and other insurance premium income decreased year-on-year.
Zhou Jin, a financial consulting partner at Baker Tilly International, told a reporter from Securities Daily that in the context of the market’s judgment on the downward trend of interest rates and the intensified volatility in the equity market, the increase in universal insurance premiums is mainly the result of the rising demand for capital hedging under the background of “asset shortage” and the overflow of consumer savings demand. Residents need to re-allocate their assets when a large number of time deposits expire. Insurance products have both guaranteed and floating income characteristics, which are attractive to consumers. Some insurance companies design universal accounts as "reservoirs" for primary insurance such as annuities and extended whole life insurances. Customers can share excess investment returns through additional and survival money transfers, thus diverting a lot of mature savings funds.
The characteristic of the "guaranteed + floating" income of universal insurance products is that its interest rate is divided into a minimum guaranteed interest rate and a settlement interest rate. The minimum guaranteed interest rate refers to the minimum rate of return promised by the insurance company to the policyholder, and is not affected by the market and the investment situation of the insurance company; the settlement interest rate is the interest rate at which the insurance company actually distributes income to the policyholder. The excess floating income it provides is related to market performance and the investment operation of the insurance company.
Chen Fu, chief non-bank analyst at GF Securities, believes that universal insurance premium income increased by 8.4% year-on-year in the first eight months, continuing a high growth trend. It is expected that the hot sales of savings insurance will drive the demand for universal insurance to continue to increase.
Looking forward to the future, Long Ge, deputy director of the Innovation and Risk Management Research Center of the University of International Business and Economics, told a reporter from Securities Daily that it is expected that universal insurance will shift from "fighting for income" to "fighting for functionality" at the product design level, focusing more on long-term protection, cash flow planning and account transparency. Universal insurance will return to its essence as a "long-term compound interest container" as an annuity insurance and whole life insurance additional accounts. At the level of market competition, the focus of product competition will also shift from a single interest rate competition to a comprehensive competition of service quality and asset allocation capabilities.
Zhou Jin believes that universal insurance may show four trends in the future: First, the settlement interest rate center of universal insurance continues to converge towards the guaranteed interest rate, and fluctuates in a low and narrow range; second, the guaranteed interest rate enters a dynamically adjustable era, which can be adjusted after the expiration of the guarantee period, and the center will continue to move downward, becoming It is a pressure reducing valve for insurance companies to hedge interest rate losses; third, "main insurance + universal account" has become the mainstream form, and is embedded in pension and education fund scenarios, with outstanding defensive attributes; fourth, product differentiation has become normal, and the ability to match investments and assets and liabilities has become the main competitiveness of insurance companies and products.
