Our reporter Leng Cuihua
As of June 13, according to Wind, 716 universal insurance products had released the settlement interest rate in May.
On the whole, the settlement interest rate of universal insurance in May was the highest 3.5% (annualized, the same below) and the lowest 2.0%. From the distribution of settlement interest rates, there are 275 items with settlement interest rates above 3%, accounting for 38.4%; 292 items with a settlement interest rate of 3%, accounting for 40.8%; There are 149 items whose settlement interest rate is lower than 3%, accounting for 20.8%. That is to say, nearly 80% of the products whose settlement interest rate of universal insurance reached or exceeded 3% in May.
Industry insiders believe that the current settlement interest rate of universal insurance is still in the downward channel. Considering the market interest rate environment, the reduction is expected. For consumers, universal insurance has the characteristics of the lowest guaranteed interest rate, which is still attractive.
Although the settlement interest rate has declined
But there are still comparative advantages
In vertical comparison, the settlement interest rate of universal insurance is still declining. In May last year, the settlement interest rate of universal insurance was 4.95% at the highest, with 13 products in total; At the same time, the settlement interest rate of 440 products is more than 4%, and that of 148 products is 4%. From January this year, the highest settlement interest rate was 4.0%, with 15 products in total; At the same time, the settlement interest rate of 291 products is more than 3.5%.
Xu Yushen, founding member of the China Association of Actuaries, analyzed the decline of the settlement interest rate of universal insurance to the reporter of Securities Daily, which was mainly affected by the investment environment and investment income. In the past two years, insurance assets have faced the problem of asset shortage. The return on fixed income assets has declined, equity assets have fluctuated greatly, and investment returns have been under pressure. In the first quarter of this year, the financial return on investment of insurance funds was 2.24%, down 1.16 percentage points from 3.4% in the same period last year. However, despite the decline in the settlement rate of universal insurance, it still has a comparative advantage. After all, the return on investment of traditional wealth management products, such as bank deposits and national debt, is also declining.
Yang Fan, the general manager of Beijing Paipaiwang Insurance Agency Co., Ltd., told the Securities Daily that the overall settlement interest rate is relatively stable, but it also reflects the current situation of lower overall interest rate.
Multiple products
Settle at the minimum guaranteed interest rate
The reporter found that at present, the settlement interest rate of multiple universal insurance has been the lowest guaranteed interest rate. For example, the settlement interest rate of endowment insurance (universal type) launched by someone's life insurance company in May was 3.5%. According to the product terms, the minimum guaranteed interest rate was 3.5% per annum. This product was discontinued in 2017.
In recent years, with the change of the investment environment, the minimum guaranteed interest rate and the actual settlement interest rate of universal insurance products continue to decline. For example, on July 31 last year, three types of products, including universal insurance, with a minimum guaranteed interest rate of more than 2%, were completely discontinued. In January this year, the life insurance company comprehensively lowered the settlement interest rate of universal insurance, with a ceiling of 4%.
According to the regulations of the regulatory department, when the actual return on investment of the universal account is less than the minimum guaranteed interest rate, the insurance company can make up the difference by reducing the smooth reserve. If the balance cannot be made up, the insurance company shall make up the difference by injecting capital into the universal account. In other cases, the insurance company shall not inject capital into the universal account in any form.
Insiders believe that the minimum guaranteed interest rate is a rigid liability of insurance companies and cannot be adjusted; The actual settlement interest rate can be adjusted but cannot be lower than the minimum guaranteed interest rate, both of which are related to the cost of insurance companies and the attractiveness of products to consumers.
He Jiangang, co-founder of Aixuan Technology and North American actuary, told the Securities Daily that universal insurance with high settlement interest rate can attract more consumers to buy and hold policies, but this also means that insurance companies need to achieve higher investment returns in the capital market and stronger investment management capabilities to achieve corresponding returns. At the same time, too high settlement interest rate will compress the profit space of insurance companies, especially in the case of poor investment environment. In addition, the stability and transparency of the settlement interest rate will also affect the stickiness of customers and the sustainability of policies. If the settlement interest rate fluctuates greatly or differs greatly from the previous demonstration, the surrender rate may increase.
Yang Fan said that under the pressure of investment, it is necessary to reduce the comprehensive cost of capital from the liability side. In combination with the current macroeconomic and interest rate trends and other factors, it is more likely that the settlement interest rate of universal insurance will be adjusted downward in the future.
He Jiangang also believes that the settlement interest rate of universal insurance may gradually decline in the future, but it is still attractive to investors who seek steady returns and have relatively limited investment channels. For insurance companies that adopt a higher guaranteed interest rate strategy, they need to further strengthen risk management and investment strategies to ensure that they can maintain their financial stability while maintaining the stability of settlement interest rates. In general, insurance companies will seek a balance between enhancing the competitiveness of universal insurance products and maintaining the company's financial stability to achieve sustainable development.
