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

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

According to Caixin, in order to protect consumer rights and enhance the feasibility of demonstration interest rates, the upper limit of the demonstration 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 each personal insurance company should avoid “speculative suspension of sales.”

At the same time, each personal insurance company needs to reasonably determine the actual dividend level for the year 2025, following the principles of “asset-liability matching, financial and actuarial hard constraints, investment returns supporting, and sustainable dividend levels,” and conduct sufficient verification of the proposed annual dividend level. Data shows that the rolling average financial yield of the personal insurance industry has remained stable over the past three years, at around 3.2%.