China Life(SH:601628) Jin Rong Shi Bao·2025-07-26 08:10Core Viewpoint - The life insurance industry in China is set to undergo a significant adjustment in the predetermined interest rates for life insurance products, with the current research value dropping to 1.99%, indicating a new round of rate reductions [2][5][7]. Group 1: Predetermined Interest Rate Adjustments - The China Insurance Industry Association has announced that the research value for ordinary life insurance products' predetermined interest rate is now 1.99%, down from 2.13% in the previous quarter [6][7]. - The current maximum predetermined interest rate for ordinary life insurance products is 2.5%, and the new research value has fallen below this threshold by 25 basis points, triggering the adjustment mechanism [7][8]. - Insurance companies, including China Life, Ping An Life, and others, will adjust their new registered insurance products' maximum predetermined interest rates, effective from August 31, with ordinary products set at 2.0% [8][9]. Group 2: Market Impact and Company Responses - The reduction in predetermined interest rates is expected to affect the attractiveness of traditional products like whole life and annuity insurance, potentially increasing sales difficulties [12]. - In response to the changing macroeconomic conditions and interest rate trends, many life insurance companies have begun product switches and are focusing on product innovation, particularly in developing floating yield insurance products [12].