Core Viewpoint - The sudden suspension of a dividend-type increasing endowment life insurance product with a guaranteed interest rate of 2.0% has heightened market attention towards the upcoming interest rate adjustments in the insurance sector [2]. Group 1: Market Reaction - On August 5, a notification from an insurance company led to the immediate suspension of a product, leaving little time for customer notification, particularly in Shanghai where dual recording is required for insurance purchases [1]. - The emergency suspension of the product occurred just two hours after the notification was received, indicating a rapid response from the insurance company [1]. Group 2: Regulatory Changes - The China Insurance Industry Association announced a predetermined interest rate research value of 1.99% on July 25, triggering adjustments in life insurance predetermined interest rates and product changes [2]. - Major insurance companies quickly responded to the announcement by issuing product switch notifications [2]. Group 3: New Interest Rate Limits - The new maximum predetermined interest rates for ordinary, dividend, and universal products will be adjusted to 2.0%, 1.75%, and 1.0% respectively, with the product switch date set for August 31 [3].

Core Viewpoint - The insurance market is experiencing a wave of product suspensions ahead of the upcoming adjustment in predetermined interest rates, with significant implications for sales dynamics and consumer behavior [1][2][4]. Group 1: Product Suspension - Several insurance companies have rapidly suspended existing products, with some notifications given only two hours in advance, raising concerns in the market [2][4]. - A specific dividend-type endowment life insurance product with a guaranteed interest rate of 2.0% was abruptly taken off the market on August 5, 2023, just two hours after the notice was issued [1][2]. - The suspension affects various types of life insurance products, including critical illness insurance and endowment insurance, with many products marked for potential immediate suspension [2][4]. Group 2: Rate Adjustment and Market Response - The China Insurance Industry Association announced a predetermined interest rate of 1.99% on July 25, triggering a mechanism for adjusting life insurance rates and products [1]. - The maximum predetermined rates for different product types will be adjusted to 2.0% for ordinary and dividend-type products, 1.75% for universal products, and 1.0% for others, effective August 31 [1][9]. - The current market sentiment indicates that the demand for life insurance products has been exhausted due to previous "suspension speculation," leading to a muted response to the recent product suspensions [4][8]. Group 3: Product Popularity and Consumer Behavior - Dividend-type endowment life insurance has gained popularity in a declining interest rate environment, outperforming traditional products in sales rankings [5][6]. - The competitive edge of dividend-type products lies in their potential for higher returns beyond the guaranteed interest, appealing to consumers seeking both protection and investment [6][9]. - The sales dynamics are shifting, with insurance companies needing to adapt their sales strategies and agent training to align with the changing product landscape and consumer expectations [10]. Group 4: Future Outlook - The insurance industry is expected to see continued growth in dividend-type products as they offer a combination of protection and potential returns, especially in a low-interest-rate environment [8][9]. - The non-symmetric adjustment of interest rates, where dividend products see a smaller reduction compared to traditional products, enhances their market competitiveness [9]. - The overall insurance premium income is projected to maintain a growth trajectory, with significant increases noted in the first half of 2025 [8].

Core Viewpoint - The insurance market is experiencing a wave of product suspensions ahead of the upcoming adjustment in predetermined interest rates, with significant implications for sales dynamics and consumer behavior [1][2][4]. Group 1: Product Suspension - Several insurance companies have rapidly suspended various life insurance products, with some notifications given only two hours in advance, raising concerns in the market [2][4]. - A specific dividend-type life insurance product with a guaranteed interest rate of 2.0% was abruptly taken off the market on August 5, 2023, just two hours after the notification was issued [1][2]. - The suspension affects a range of products, including critical illness insurance, increasing death benefit insurance, and annuity insurance, with many products marked for potential immediate suspension [2][4]. Group 2: Market Dynamics - The current wave of product suspensions has not triggered a buying frenzy among consumers, contrasting with previous instances where suspensions led to significant sales spikes [4]. - Analysts suggest that consumer demand has been exhausted in prior "suspension hype" cycles, indicating that the current product suspensions may not lead to renewed sales surges [4][8]. - The upcoming adjustment in predetermined interest rates is set for August 31, 2023, which coincides with the anniversary of the previous product suspension, further complicating market expectations [1][2]. Group 3: Product Preferences - Dividend-type life insurance products are gaining popularity in the current market, attributed to their unique attributes that appeal to consumers seeking both protection and potential returns [5][9]. - Despite traditional products offering a fixed return of 2.5%, the 2.0% guaranteed rate of dividend products is still favored due to their potential for additional returns through dividends [6][9]. - The competitive edge of dividend products is significantly influenced by the insurance companies' investment capabilities and historical dividend performance [6][7]. Group 4: Regulatory Environment - The regulatory environment has prompted insurance companies to adjust their product offerings, with predetermined interest rates for various product types being lowered [9][10]. - The recent adjustments show a "non-symmetrical" characteristic, where traditional and universal life insurance rates were reduced more significantly than dividend products, enhancing the latter's market competitiveness [9]. - The anticipated changes in the market are expected to support the sales of dividend products, aligning with regulatory guidance aimed at promoting their distribution [9][10].