Core Viewpoint - The average settlement interest rate for universal life insurance products has declined, reflecting pressures from fixed-income asset yields and regulatory measures aimed at mitigating risks associated with interest rate differentials [1][2]. Group 1: Settlement Interest Rates - As of June 19, 2023, 991 universal life insurance products reported May settlement interest rates, with a minimum of 0.36% and a maximum of 3.5%, resulting in an average of 2.76%, down 0.21 percentage points year-on-year [1]. - The median settlement interest rate is 2.75%, which is a decrease of 0.25 percentage points compared to the same period last year [1]. - 427 products have settlement interest rates of 3% or above, accounting for 43% of the total [2]. Group 2: Premium Income - In the first four months of the year, the new premium income from policyholder investment funds for universal life insurance was 307.6 billion, representing a year-on-year decline of 4.8% [2]. - The decline in premium income is attributed to the narrowing appeal of universal life insurance compared to bank wealth management products, regulatory restrictions on product flexibility, and a shift in sales focus towards higher-commission participating insurance products [2][3]. Group 3: Future Outlook - The settlement interest rates for universal life insurance are expected to continue declining in the short term, potentially approaching the minimum guaranteed rate of 1.5%, although the decline may be limited [3]. - If investment returns for insurance companies improve, settlement interest rates may stabilize; however, premium income is likely to face further declines due to lower interest rates and competition from alternative products [3]. - Long-term sustainability for insurance companies will require product transformation and a focus on long-term protection to stabilize premium income [3].