Guo Ji Jin Rong Bao·2025-10-16 14:33Core Insights - The return of participating critical illness insurance to the market is supported by regulatory guidance aimed at enhancing the attractiveness of health insurance products through floating income mechanisms [1][3][5] - The historical context shows that participating critical illness insurance was popular before 2003 but was phased out due to regulatory concerns over complexity and mis-selling [2][3] - The current market conditions, including a decline in predetermined interest rates, have created a need for innovative products that can provide dynamic growth in coverage amounts [3][4] Industry Trends - The insurance industry is shifting towards floating income products, with significant growth in participating insurance premiums observed in major companies like China Pacific Insurance and New China Life Insurance [4][5] - The market is experiencing a transformation where participating insurance is becoming a key area for product innovation and differentiation amid intense competition [3][4] Challenges and Recommendations - The design of participating critical illness insurance must balance coverage and dividends, posing challenges for actuarial and risk management capabilities within insurance companies [5][6] - Companies face difficulties in selling participating products due to higher premiums compared to traditional products, necessitating clear communication about dividend uncertainties to avoid consumer disputes [5][6] - Recommendations for companies include enhancing transparency in product design, improving agent training, and leveraging big data for pricing optimization [5][6]