Core Viewpoint - The recent issuance of the "Guidelines for Cost Allocation of Life Insurance Products" and the "Notice on Strengthening Regulation of Non-Motor Insurance Business" signifies a comprehensive deepening of the "reporting and execution" (报行合一) policy across all insurance sectors in China, transitioning from regulatory norms to operational practices [1][2]. Group 1: Policy Implementation - The "reporting and execution" policy requires insurance companies to strictly adhere to approved insurance terms and rates, ensuring consistency between reported content and actual operations [2]. - The introduction of the "Guidelines" aims to clarify the scientific and reasonable allocation of costs in life insurance product pricing, marking a significant management revolution that compels companies to establish transparent and traceable cost accounting systems [2][3]. - The successful implementation of "reporting and execution" in the motor insurance sector has led to a decrease in the comprehensive expense ratio to 23.8% by the end of 2024, a 4.1% year-on-year decline, indicating improved market order and reduced vicious competition [3]. Group 2: Market Impact - The average commission rate in the bank insurance channel has decreased by 30%, reflecting the positive effects of the new policies in the life insurance sector [3]. - The upcoming implementation of the "Notice" on November 1 is expected to further regulate the complex and competitive non-motor insurance market, guiding the industry towards quality-oriented development [3][4]. - The comprehensive deepening of "reporting and execution" is anticipated to reshape the market ecosystem, enhancing competition based on product quality, service, risk control, and brand value [4]. Group 3: Long-term Outlook - While the transition may cause short-term challenges for smaller companies reliant on high-cost models, this is viewed as a necessary process for the industry's evolution [4]. - The long-term benefits of "reporting and execution" include empowering companies to shift from sales-driven to product and service-driven models, improving core capabilities in risk pricing, cost control, and technology application [4]. - The initiative is expected to protect consumer rights by ensuring more transparent pricing and rigid service commitments, allowing consumers to obtain better insurance coverage at reasonable prices [4].

Core Viewpoint - China Post has been granted approval to operate insurance agency business, marking its entry into the insurance intermediary market amidst a backdrop of increasing regulatory scrutiny and the exit of many players [1][3]. Industry Perspective - The insurance intermediary industry is undergoing significant changes, with strong regulations filtering out numerous participants. China Post's entry is seen as a strategic move to align with regulatory requirements for licensed operations [3][5]. - The approval allows China Post to offer a range of insurance products, including property and life insurance, leveraging its extensive network of over 54,000 outlets across urban and rural areas [4][9]. Company Strategy - China Post's decision to apply for an insurance agency license at the corporate level is a shift from its previous decentralized approach, where individual branches operated under various qualifications [5][6]. - The unified application for the insurance agency license aims to enhance compliance with regulatory standards and streamline management of insurance operations across its network [6][8]. Network Empowerment - The approval specifies that only designated agency outlets will be allowed to operate in insurance, indicating that not all postal outlets will engage in this business [7][8]. - The extensive network of China Post is expected to improve insurance product accessibility, particularly in underserved markets such as third- and fourth-tier cities [9]. Future Outlook - The insurance agency business is anticipated to create significant synergies with existing postal services, enhancing customer service and product offerings [9][10]. - China Post is expected to focus on professional management and improving service quality in its insurance operations to build consumer trust and brand reputation [10].

Core Viewpoint - The "reporting and operation integration" policy is showing positive effects, but its benefits are not one-time and will have a long-tail effect in the insurance industry [1][4]. Group 1: Policy Implementation - The China Actuarial Society has released guidelines for expense allocation in life insurance products, categorizing expenses into variable and fixed costs, with specific exclusions for four types of expenses [2][3]. - The "reporting and operation integration" aims to curb internal competition among insurance companies that leads to underwriting losses through practices like "small accounts" and "rebates" [2][3]. Group 2: Expense Management - The guidelines enhance the scientific and rational management of expense allocation, which is crucial for implementing the "reporting and operation integration" policy effectively [3][4]. - Fixed costs that need to be allocated exclude expenses not directly related to insurance operations, such as investment-related costs and one-time expenses, which helps in more accurate product pricing [3][4]. Group 3: Market Impact - The implementation of the "reporting and operation integration" in the life insurance sector has led to a significant reduction in commission rates, averaging a 30% decrease [4]. - The long-term effects of the policy are expected to improve the operational quality of the life insurance industry and potentially restore sector valuations [4].

Core Viewpoint - The introduction of the "Guidelines for Expense Allocation of Life Insurance Products" aims to enhance the scientific and rational nature of expense allocation in life insurance product pricing, aligning with the "reporting and operation integration" policy [1][2]. Group 1: Background of the Guidelines - The guidelines were developed in response to increasing demands for expense allocation in life insurance pricing, assessment, and management, particularly following the implementation of the "reporting and operation integration" policy in 2023 [2]. Group 2: Main Content of the Guidelines - The guidelines define and categorize expenses, distinguishing between variable expenses and fixed expenses to be allocated. Variable expenses are further divided into those paid to intermediaries or sales personnel and other variable expenses, while fixed expenses include business and management fees [3]. - The guidelines specify the scope of expense allocation based on the nature and cause of expenses [3]. - The guidelines outline methods for expense collection, identification, and allocation, emphasizing a principle of "identification first, allocation later" to ensure scientific and rational expense management [3]. Group 3: Impact on the Industry - The guidelines provide scientific guidance for expense allocation in the life insurance industry, enhancing the rationality of pricing and supporting the implementation of the "reporting and operation integration" policy. This will promote improved expense management, operational efficiency, and resource optimization, ultimately benefiting consumers with better insurance products and services [4]. Group 4: Future Work Arrangements - The China Actuarial Association plans to conduct industry training to raise awareness of the importance of refined expense management and improve insurance companies' expense management levels [5]. - The association will continue to monitor and research expense allocation and management practices within the industry to promote fair competition and high-quality development [5].

Investment Rating - The industry investment rating is "Overweight" [1] Core Insights - The non-bank financial index fell by 4.4% last week, underperforming the CSI 300 by 0.6 percentage points, with both brokerage and insurance indices showing a synchronized decline of 4.9% and 3.0% respectively [4][8] - The merger of CICC, Dongxing Securities, and Xinda Securities is expected to enhance market competitiveness and resource optimization, with the combined entity projected to exceed 1 trillion yuan in total assets by Q3 2025, ranking fourth in the industry [4] - The introduction of guidelines for expense allocation in life insurance products aims to promote reasonable pricing and refined management, enhancing the sustainability of insurance companies and protecting consumer rights [4] Summary by Sections Market Review - The Shanghai Composite Index decreased by 3.9%, while the Shenzhen Component Index fell by 5.1%, and the CSI 300 dropped by 3.8% last week [8] - The average daily trading volume of stock funds was 23,309 billion yuan, a decrease of 6.6% from the previous week [16] Brokerage Sector - The merger of CICC, Dongxing Securities, and Xinda Securities is a significant development, with expectations of further consolidation within the Huijin system to reduce competition and optimize resources [4] - The internationalization of brokerages is deepening, as evidenced by Guotai Junan's acquisition of an Indonesian securities firm [4] Insurance Sector - The release of the "Expense Allocation Guidelines" by the Actuarial Society aims to standardize pricing in life insurance products, enhancing transparency and fairness in the industry [4] - The guidelines are expected to improve the management of expenses and support the sustainable development of insurance companies [4] Investment Recommendations - For brokerages, it is suggested to focus on opportunities related to mergers and acquisitions, wealth management transformation, and innovative licensing [4] - For insurance companies, attention is drawn to large comprehensive insurers with competitive advantages under the new regulatory framework [4]

Core Viewpoint - The China Actuarial Association has released the "Guidelines for Expense Allocation of Life Insurance Products" to enhance the scientific and rational allocation of expenses in life insurance product pricing, aligning with the "reporting and operation integration" policy [1][2]. Group 1: Guidelines Overview - The guidelines define and categorize expenses related to life insurance business, distinguishing between variable expenses and fixed expenses that need to be allocated [2]. - Variable expenses are further divided into those paid to intermediaries or insurance sales personnel and other variable expenses, while fixed expenses refer to business and management fees excluding variable costs [2]. Group 2: Implementation and Impact - The guidelines specify the scope of expense allocation based on the nature and cause of expenses, providing methods for expense collection, identification, and allocation [2]. - Insurance companies are required to identify exclusive and shared expenses based on actual expenditures and beneficiaries, following the principle of "identify first, allocate later" to conduct expense recognition and allocation scientifically and rationally [2]. - The implementation of these guidelines is expected to improve the pricing of life insurance products, enhance expense management levels, and promote fair competition and high-quality development within the industry [2].

证券研究报告·行业跟踪周报·非银金融 非银金融行业跟踪周报 证券行业并购稳步推进；保险业总资产突破 40 万亿 增持（维持） 相关研究 [Table_Tag] [Table_Summary] 投资要点 ◼ 风险提示：1）宏观经济不及预期；2）政策趋紧抑制行业创新；3）市场 竞争加剧风险。 2025 年 11 月 23 日 证券分析师 孙婷 执业证书：S0600524120001 sunt@dwzq.com.cn 证券分析师 罗宇康 执业证书：S0600525090002 luoyk@dwzq.com.cn 行业走势 -14% -10% -6% -2% 2% 6% 10% 14% 18% 22% 2024/11/25 2025/3/25 2025/7/23 2025/11/20 非银金融 沪深300 《中金公司拟换股合并东兴证券、信 达证券，资产规模将破万亿元》 2025-11-20 《金融科技 2026 年投资策略-- 短期 看市场活跃的持续性，中期关注金融 IT》 2025-11-17 东吴证券研究所 1 / 15 请务必阅读正文之后的免责声明部分 ◼ 非银行金融子行业近期表现：最近 5 个交易日（2025 ...

Core Viewpoint - The newly released guidelines by the China Actuarial Association aim to optimize the cost-sharing mechanism in the life insurance industry, transitioning from a "cost-driven" to a "value-driven" sales approach, enhancing long-term service and professional capabilities of intermediaries and sales personnel [1][4][7] Summary by Sections Guidelines Overview - The "Guidelines for Cost Sharing of Life Insurance Products" were published on November 21, focusing on the practical aspects of cost sharing in life insurance products and aligning with the "reporting and operation integration" requirements [1][4] Cost Definitions and Classifications - The guidelines categorize costs into variable costs and fixed costs for sharing, with variable costs including commissions and fees directly related to sales, while fixed costs encompass business and management fees not directly tied to sales [3][5] Exclusions from Cost Sharing - Four types of expenses are explicitly excluded from the cost-sharing framework: non-sales related expenses, asset management and custody fees, costs not directly attributable to insurance contracts, and identifiable non-recurring expenses [3][5] Need for Detailed Cost Sharing Mechanism - The guidelines respond to the increasing demand for a refined cost-sharing mechanism in the life insurance sector, particularly following the implementation of related policies in 2023, which have further regulated market order [4][6] Cost Recognition and Sharing Methods - The guidelines emphasize a "recognition before sharing" principle, detailing methods for cost recognition and sharing, including time survey methods, activity-based methods, and other reasonable approaches [5][6] Long-term Industry Impact - The implementation of these guidelines is expected to lead to a more transparent cost structure, reduce the mixing of non-insurance business costs into product costs, and enhance regulatory traceability of actual expense levels, ultimately promoting fair competition and high-quality development in the industry [5][7]

Investment Rating - The report suggests a focus on three main investment lines, particularly highlighting the potential for significant growth in the securities and insurance sectors [2][4]. Core Insights - The report indicates that the recent merger activities among major securities firms, such as the planned absorption of Dongxing Securities and Xinda Securities by CICC, are expected to enhance industry concentration and catalyze valuation recovery in the brokerage sector [1][43]. - It emphasizes the strong performance of listed brokers in Q3, with a current price-to-book ratio (PB) of 1.34x, recommending brokers with solid fundamentals but mismatched valuations [2]. - The report also highlights the promising growth prospects in the multi-financial sector, particularly for the Hong Kong Stock Exchange, which is expected to benefit from deepening connectivity and increased activity from A-share companies listing in Hong Kong [2]. Summary by Sections Securities Sector - The report notes a significant merger in the securities industry, with CICC planning to merge with Dongxing Securities and Xinda Securities, which is the third major merger in 2024, following the mergers of Guotai Junan and Haitong Securities, and Guoxin Securities acquiring Wanhe Securities [1]. - It highlights the expected impact of this merger on industry concentration and valuation recovery for the brokerage sector [1]. Insurance Sector - The report discusses the recent guidelines issued by the China Actuarial Society regarding the expense allocation for life insurance products, which aims to enhance the scientific and reasonable pricing of insurance products [3]. - It anticipates a double-digit growth in new premium income in the short term, supported by a decrease in liability costs and improved industry concentration in the long term [4]. - The report recommends focusing on leading insurance companies with strong business quality and low liability costs, as well as those undergoing transformation towards dividend insurance [4]. Market Review - The report provides a market review indicating that the CSI 300 index fell by 3.8%, with the non-bank financial sector declining by 4.4%, underperforming the index [10]. - It notes the performance of various sub-sectors, with securities and insurance stocks experiencing declines of 4.9% and 3.0%, respectively [10]. Data Tracking - The report includes data on brokerage activities, noting a decrease in average daily A-share trading volume to 18,650 billion yuan, a decline of 8.7% [15]. - It also highlights significant growth in the issuance of equity public funds and bond underwriting, with IPO and refinancing raising 902 billion and 8,623 billion yuan, respectively, in October 2025 [15].

Investment Rating - The report maintains a "Recommendation" rating for the insurance industry, expecting the industry index to outperform the benchmark index by over 5% in the next 3-6 months [21]. Core Insights - The insurance index fell by 3.06% this week, outperforming the broader market by 0.71 percentage points. Major insurance stocks experienced declines, with notable drops from Sunshine Insurance (-4.8%) and China Pacific Insurance (-4.57%) [1]. - The China Actuarial Society released the "Guidelines for Expense Allocation of Life Insurance Products," which aims to enhance the scientific management of expenses within insurance companies and supports the implementation of the "reporting and operation integration" policy [2][4]. - As of the end of 2024, 34 insurance asset management companies managed a total of CNY 33.30 trillion, reflecting a year-on-year growth of 10.60% [2]. - The report highlights that 172 insurance companies have disclosed their solvency data for Q3 2025, with 14 achieving an AAA risk rating, while 4 companies fell below solvency standards [2]. Summary by Sections Market Performance - The insurance sector's performance was characterized by a 3.06% decline in the insurance index, with individual stocks like China Life and Ping An also showing significant decreases [1]. Regulatory Developments - The newly released guidelines categorize life insurance business expenses into variable and fixed costs, specifying which expenses should not be allocated and providing methods for expense allocation [4]. Financial Data - The total market capitalization of the insurance sector is CNY 32,109.56 billion, with a circulating market value of CNY 22,103.29 billion [6]. Valuation Metrics - The report provides PEV valuations for major life insurance companies, with China Life at 0.83x and Ping An at 0.71x [5]. - For property insurance, the PB valuations are noted, with China Re at 0.58x and PICC at 1.2x [10]. Investment Recommendations - Short-term recommendations focus on companies with performance elasticity, suggesting investments in New China Life, China Property & Casualty, and China Life. Long-term recommendations include China Pacific Insurance and China Ping An based on fundamental and valuation considerations [10].