Group 1 - The insurance market is experiencing a significant number of life insurance products being discontinued, with some products ceasing sales as of August 31 and others being pulled from the market immediately after announcements [1] - This trend is linked to the upcoming third reduction in the annual interest rate for life insurance products, effective September 1, which has prompted companies to halt sales of older products in anticipation of new offerings [1] Group 2 - Life insurance encompasses various types, including life insurance, health insurance, accident insurance, and annuity insurance, which are popular among consumers [2] - Life insurance products include term life, whole life, and endowment insurance, while health insurance covers critical illness, medical expenses, disability, and long-term care [2] Group 3 - The predetermined interest rate for life insurance products has been on a downward trend, with the current research value at 1.99%, a decrease of 14 basis points from previous values of 2.34% and 2.13% earlier this year [3] - This marks the third consecutive reduction in the predetermined interest rate for life insurance in 2023, totaling a decline of over 50 basis points from last year's final quarter rate of 2.50%, a historically significant drop [3] Group 4 - The decline in the predetermined interest rate significantly impacts the long-term returns for policyholders, as it serves as the internal return target for insurance companies when pricing long-term policies [4] - The reduction is primarily due to falling yields in the bond market, which affects the investment returns available to insurance companies [4] Group 5 - Major life insurance companies, including China Life and Taikang Life, have announced adjustments to the maximum predetermined interest rates for new insurance products, with expectations of a new maximum of 2.0% for ordinary insurance products and 1.75% for participating insurance products [7] - The predetermined interest rate is a theoretical reference value and does not equate to the actual returns received by investors, as various costs such as commissions and management fees will reduce the final yield [7] - Some companies may introduce new products with features that combine guaranteed and floating returns, which could potentially create new market hits [7]