寿险转换长护险业务全面开展

Core Viewpoint - The recent policy initiative aims to accelerate the implementation of the conversion of life insurance liabilities to long-term care insurance liabilities, addressing the growing demand for long-term care services due to an aging population in China [1][2]. Group 1: Policy and Regulatory Framework - The Financial Regulatory Authority has issued guidelines to fully develop the conversion business between life insurance and long-term care insurance, allowing insured individuals to convert life insurance payouts into long-term care expenses when they become disabled [1][2]. - The pilot program for this conversion has been in place for two years, with a formal rollout starting on May 1, 2023, allowing all life insurance companies to participate [1]. Group 2: Market Dynamics and Challenges - Several insurance companies, including China Life, Taiping Life, and Ping An Life, have begun to disclose information about eligible life insurance products for conversion on their websites, although the number of companies actively participating remains limited [2]. - Challenges for insurance companies include the complexity of actuarial calculations, high system modification requirements, and a lack of immediate premium contribution, leading to insufficient internal motivation to pursue this business [2][3]. Group 3: Market Opportunities - The conversion business presents an opportunity to activate a large existing life insurance market and innovate insurance service formats, meeting the health protection needs of residents throughout their life cycle [3]. - The dual mechanism of "policy discounting" and "actuarial equivalence" allows for flexible conversion options, catering to both insured individuals in care and those in good health [3]. Group 4: Future Directions for the Industry - Industry experts suggest that insurance companies should enhance their professional capabilities, optimize product designs, and leverage technology to improve underwriting and claims processes [3]. - Establishing long-term partnerships with organizations providing long-term care services is also recommended to integrate these services into the insurance company's health and elderly care ecosystem [3].