Minsheng Securities·2025-04-20 04:09Investment Rating - The report maintains a "Recommended" rating for the insurance industry, particularly focusing on key players such as China Life, Ping An, China Pacific Insurance, and New China Life [4]. Core Insights - The report highlights the implementation of the "reporting and operation integration" in the personal insurance sector, aimed at enhancing the industry's contribution to "fee difference benefits" [1]. - It emphasizes the optimization of commission incentive distribution mechanisms to encourage long-term service by individual insurance agents, which is expected to improve the quality of service and stabilize the workforce [2]. - The report suggests that the implementation of the new policies will likely lead to a rebound in the sales force of leading insurance companies, supported by macroeconomic recovery [3]. Summary by Sections Policy Changes - The National Financial Regulatory Administration issued a notice to reform the personal insurance marketing system, promoting high-quality development in the industry [1]. - The notice aims to unify expense assumptions, budget expenses, and assessment expenses, reducing irrational market behaviors driven by high commissions [1]. Commission Structure - For policies with a payment period of 5 to 10 years, commission payment must last at least 3 years; for those over 10 years, it must last at least 5 years [2]. - This change is expected to enhance the long-term retention and service awareness of agents, leading to steady growth in New Business Value (NBV) [2]. Workforce Dynamics - As of the end of 2024, the sales forces of major insurance companies are projected to stabilize, with China Life at 615,000, Ping An at 363,000, China Pacific at 136,000, and New China Life at 184,000 [3]. - The report anticipates that the quality of new recruits will improve, contributing to the growth of NBV and NBV Margin (NBVM) in the personal insurance channel [3]. Investment Focus - The report recommends focusing on China Pacific Insurance, with additional attention to Sunshine Insurance, New China Life, Ping An, and China Life due to their potential benefits from the new policies and market conditions [3].