Core Viewpoint - The implementation of the dynamic adjustment mechanism for the predetermined interest rate in the life insurance industry allows for a longer period for the market to establish and digest the expectation of rate reductions, leading to more rational consumer behavior and long-term product strategies from insurance companies [2][6]. Group 1: Product Transition and Sales Dynamics - Insurance companies are required to complete the transition from old to new products by the end of August, with a focus on meeting sales targets before the old products are discontinued [2][3]. - The current predetermined interest rate for ordinary life insurance products has been reduced to 1.99%, down 14 basis points, triggering the dynamic adjustment mechanism [3]. - Insurance agents are actively engaging with clients to maximize sales before the product switch, indicating a strong demand for insurance products [3]. Group 2: Impact of Rate Adjustments on Premiums - Following the reduction of the traditional insurance predetermined interest rate from 2.5% to 2.0%, the premium increases for various insurance products are as follows: annuity insurance (18.9%), whole life insurance (20.8%), term life insurance (3.6%), endowment insurance (7.6%), and health insurance (17.7%) [4]. - For dividend insurance, the predetermined interest rate decreased from 2.0% to 1.75%, resulting in premium increases of 9.1%, 10.1%, 1.8%, 3.7%, and 8.7% for the same categories [4]. Group 3: Preparedness of Insurance Companies - Insurance companies have been proactive in preparing for the product transition, with some having completed product registration and system adjustments well in advance [5]. - The adjustment of dividend insurance rates has been more conservative, with a smaller reduction of 25 basis points to avoid excessive pressure on sales channels [5]. - Companies are anticipating further rate reductions in the future, with preparations in place for a potential decrease to 1.5% in the fourth quarter [5]. Group 4: Market Trends and Consumer Behavior - The dynamic adjustment mechanism is expected to lead to a healthier insurance market, with consumers becoming more rational in their purchasing decisions [2][6]. - The long-term downward trend in predetermined interest rates is likely to favor dividend insurance, which balances the interests of insurance companies and clients [6]. - The shift towards dividend insurance is expected to alleviate the cost pressures faced by insurance companies, as new business liabilities decrease [6]. Group 5: Consumer Guidance - Consumers are advised to be cautious during the product transition period, avoiding misleading "炒停售" (炒作停售) behaviors and focusing on the financial strength of insurance companies [7]. - It is recommended that consumers pay attention to the liquidity of their investments and the flexibility of terms such as reduced coverage and policy loans when purchasing dividend insurance [7].

Core Viewpoint - The implementation of the dynamic adjustment mechanism for the predetermined interest rate in the life insurance industry allows for a longer period for the market to establish and digest the expectation of interest rate reductions, leading to more rational consumer purchasing behavior and a healthier insurance market [2][6]. Group 1: Product Switching and Sales Dynamics - Insurance companies are required to complete the transition from old to new products by the end of August, with a focus on meeting sales targets before the old products are phased out [2][3]. - Insurance marketing agents are actively engaging with clients to maximize sales during this transition period, indicating a strong demand for insurance products [3]. - The adjustment in predetermined interest rates is expected to lead to an increase in insurance premiums, prompting consumers to purchase products before the switch [4]. Group 2: Impact of Interest Rate Adjustments - The predetermined interest rate for ordinary life insurance products has been reduced to 1.99%, a decrease of 14 basis points, triggering the dynamic adjustment mechanism [3]. - The reduction in interest rates will result in varying increases in gross premiums for different insurance products, with traditional insurance seeing increases of up to 20.8% [4]. - Companies are preparing for further adjustments, with some anticipating a potential additional reduction in the predetermined interest rate for dividend insurance products in the fourth quarter [5]. Group 3: Market Trends and Consumer Guidance - The dynamic adjustment mechanism is expected to lead to a more rational purchasing behavior among consumers and a shift in the competitive landscape of insurance companies towards enhancing service and digital experiences [6]. - The trend towards dividend insurance is seen as beneficial for balancing the interests of insurance companies and clients, with a projected increase in the share of new business [6]. - Consumers are advised to carefully evaluate the strength of insurance companies and the flexibility of policy terms when purchasing insurance during the product switching period [7].