Jin Rong Shi Bao·2026-01-14 02:37Core Viewpoint - The insurance industry is undergoing a significant transformation characterized by the continuous withdrawal of branch offices, reflecting a shift from extensive expansion to a focus on value and efficiency [5][6]. Group 1: Branch Withdrawals - In early 2026, multiple insurance companies, including China Life and Sunshine Insurance, have received approval to withdraw branch offices, continuing a trend observed in recent years [1]. - Over the past six years, more than 13,000 branch offices have been closed, with the number of withdrawals increasing from 971 in 2020 to over 3,100 in 2025, marking a new high [2]. - The majority of the withdrawn branches are located in third and fourth-tier cities, with over 70% of the closures in 2025 being marketing service departments [2][3]. Group 2: Factors Driving Closures - The closures are driven by three main factors: regulatory policies, changing market conditions, and technological advancements [4]. - Regulatory bodies have pushed for the elimination of "empty" and "inefficient" branches, particularly following the implementation of the "reporting and operation integration" policy [4]. - The competitive insurance market and rising operational costs have made it essential for companies to optimize branch structures and eliminate low-efficiency outlets [4]. Group 3: Industry Transformation - The ongoing withdrawal of branch offices is seen as a necessary process for the industry to abandon extensive expansion and reconstruct channel value [5]. - The industry is at a critical juncture, focusing on high-quality transformation while addressing challenges such as customer service continuity and talent retention [7]. - Companies are shifting from a traditional sales model to a service-oriented approach, integrating insurance products with health management and other value-added services to enhance customer loyalty [8]. Group 4: Future Outlook - The future of insurance branch offices will not be a complete replacement by online channels but rather a transformation of their functions to enhance customer experience and provide specialized services [8]. - The new channel structure will consist of comprehensive service points in major cities, grid-based service units in lower-tier markets, and a blend of online and offline services [8].