Xin Hua Cai Jing·2025-10-16 18:08Core Viewpoint - The insurance industry is facing significant challenges in asset-liability management due to a prolonged low interest rate environment, which has led to declining yields on assets and increasing pressure from liability costs [1][9]. Group 1: Importance of Asset-Liability Management - Asset-liability management is a strategic process that plays a crucial role in the stable development and risk prevention of insurance companies [2]. - The healthy development of the insurance industry is essential for providing risk protection and stable long-term funding for the economy [3]. Group 2: Risk Management and Value Growth - Insurance companies must manage various risks, including interest rate risk and liquidity risk, to ensure their survival and growth [4]. - Effective asset-liability management can help insurance companies predict and manage risks, ensuring they have sufficient resilience during risk exposure [4]. Group 3: Performance Improvement and Dual-Driven Model - The traditional asset-liability management framework driven by liabilities needs to shift to a dual-driven model to achieve performance growth in a low-interest, high-competition environment [5]. - Companies should strategically allocate assets based on liability characteristics to stabilize investment returns and optimize product structures to reduce liability costs [5]. Group 4: Regulatory Requirements and Overview - In 2018, regulatory bodies introduced rules to enhance asset-liability management capabilities and prevent mismatches in the insurance industry [6]. - The insurance industry has seen a narrowing of interest spread, prompting companies to adjust their product offerings to manage liability costs effectively [7]. Group 5: Challenges in Asset-Liability Management - The continuous decline in long-term interest rates directly impacts the investment returns of insurance companies, making it difficult to meet long-term return targets [9]. - The scarcity of high-quality non-standardized debt assets increases reinvestment risks for insurance companies [10]. Group 6: International Practices in Low-Interest Environments - Foreign insurance companies have adjusted their product structures to increase the proportion of interest-sensitive products, thereby alleviating liability cost pressures [15]. - The U.S. insurance industry has seen a significant increase in the share of equity investments to enhance potential returns [17]. Group 7: Domestic Practices and Recommendations - Domestic insurance companies are adopting a "barbell" asset allocation strategy to manage reinvestment risks while increasing equity asset allocations [19]. - Companies are encouraged to strengthen their asset-liability management foundations and optimize strategies to enhance investment returns and reduce liability costs [20][21].