Core Insights - The release of the "2025 Experience Life Table" by the China Actuarial Association aims to scientifically reflect the actual risk status in the life insurance industry, enhancing risk management levels [1][2] Summary by Sections Importance of the Life Table - The experience life table is crucial for insurance institutions as it serves as a foundational infrastructure for pricing, reserve assessment, and cash value calculations, ensuring the stable operation of the industry [1] Background and Need for Update - The previous life table, published in December 2016, was effective in promoting scientific pricing and improving risk prevention in the insurance sector. However, changes in life expectancy and mortality rates necessitated an update to better reflect current risks [2] Key Outcomes of the New Life Table - The new life table includes three main achievements: 1. A newly compiled experience life table that reflects the latest mortality experience of the insured population, providing a scientific reference for pricing and preventing systemic risks [3] 2. The first compilation of a single life table based on individual identification numbers, enhancing comparability with population mortality rates [3] 3. A comprehensive summary of project outcomes, including reports and educational materials aimed at various audiences [3] Impact on Insurance Products - The introduction of the new life table is expected to lead to lower pricing for term and whole life insurance products, while potentially increasing pricing for annuity products [2]

Core Viewpoint - The Financial Regulatory Authority has issued a notification to standardize the use of the fourth life table in the personal insurance industry, emphasizing prudent practices in product pricing, reserve evaluation, and dividend distribution [1] Group 1: Regulation of Life Table Usage - The notification mandates insurance companies to determine mortality rates based on product characteristics and prudent principles [1] - It specifies that companies must assess the minimum standards for statutory reserves according to actuarial regulations, ensuring appropriate selection of mortality tables [1] - The notification requires fair calculation of dividends in participating insurance policies to protect policyholders' rights [1] Group 2: Strengthening Actuarial Responsibilities - Insurance companies are urged to enhance their actuarial management and establish internal decision-making mechanisms for product pricing [1] - The notification emphasizes the importance of actuaries in risk management and measurement, advocating for a robust retrospective mechanism [1] - The Actuarial Association is encouraged to play a self-regulatory role, improving the research and compilation of life tables and enhancing the professional ethics of actuaries [1]

Core Insights - The China Actuarial Association released the "Experience Life Table for the Chinese Life Insurance Industry (2025)" to reflect changes in mortality rates and improve risk management in the life insurance sector [1][2] Group 1: Background and Necessity - The previous life table, published in December 2016, was based on data from 2010-2013 and was effective in promoting scientific pricing and enhancing risk prevention in the life insurance industry [1] - Changes in life expectancy and mortality rates necessitated the development of a new life table to accurately reflect current risks and improve service levels in the insurance industry [1] Group 2: Key Achievements of the New Life Table - A new experience life table has been created that reflects the latest mortality experience of the insured population, providing a scientific reference for pricing life insurance products and preventing systemic risks [2] - The first single life table has been compiled, using the insured's identification number instead of the policy number, allowing for cross-company and cross-insurance type analysis of mortality rates [2] - The project will produce a comprehensive report and educational materials on population aging, offering multi-dimensional insights into the life table's findings for various audiences [2]