news flash·2025-07-25 07:44Core Viewpoint - The insurance industry is experiencing a reduction in the preset interest rates for life insurance products due to the ongoing decline in market interest rates, which is expected to promote a more sustainable development model for the industry [1] Summary by Category Interest Rate Adjustments - The preset interest rate for traditional life insurance products has been lowered by 50 basis points (BP) from 2.5% to 2.0% [1] - The guaranteed interest rate ceiling for participating insurance products has been adjusted from 2% to 1.75% [1] - The guaranteed interest rate for universal insurance has been reduced from 1.5% to 1.0% [1] Industry Response - Major insurance companies such as China Life, Ping An Life, Taikang Life, and ICBC-AXA Life have announced these adjustments in their preset interest rates [1] - Insurance companies are required to complete the transition between old and new products by August 31 [1] Market Context - The current research value for the preset interest rate of ordinary life insurance products is reported at 1.99% [1] - Industry experts indicate that timely adjustments to preset interest rates in a low-interest-rate environment will help the industry establish a more sustainable development model [1]