The scheduled interest rate of life insurance products may be reduced, and the dynamic adjustment mechanism is about to be implemented

On January 10, the reporter learned that the relevant documents on the pricing mechanism of the predetermined interest rate of life insurance products may be issued recently, and the industry expects that the predetermined interest rate of life insurance products will be reduced in the second quarter. An industry insider told the reporter that the upper limit of the predetermined interest rate of the newly filed ordinary insurance products is expected to be reduced from 2.5% to 2.0%; the upper limit of the predetermined interest rate of the newly filed dividend-paying insurance products is expected to be reduced from 2.0% to 1.5%; the upper limit of the minimum guaranteed interest rate of the newly filed universal insurance products is expected to be reduced from 1.5% to 1%. According to industry insiders, the reduction of the scheduled interest rate of life insurance is in line with the downward trend of long-end interest rates, which helps to mitigate the risk of "spread loss". The establishment of a dynamic adjustment mechanism linked to market interest rates can further improve the adjustment efficiency and timeliness of the scheduled interest rate, and improve the asset-liability matching level of insurance companies. In this regard, under the new interest rate cycle, the promotion of dividend insurance has also become the consensus of the life insurance market in 2025. Dividend insurance products also have floating returns on top of guaranteed returns, which can take into account the balance between principal preservation and income.