Core Viewpoint - The National Financial Regulatory Administration has issued guidelines to support insurance companies with good regulatory ratings in developing dividend-based long-term health insurance products, marking a significant return of dividend-based critical illness insurance to the market after over 20 years [1][6]. Group 1: Market Environment Changes - The market for traditional critical illness insurance has been struggling due to continuous declines in the predetermined interest rates, which have dropped from 4.025% in December 2019 to 2% as of September 2023 [4][5]. - The popularity of low-premium medical insurance has further contributed to the decline in traditional critical illness insurance sales, as consumers increasingly favor savings-type insurance products with dividend features [4][5]. - The health insurance industry is facing challenges such as reduced sales force effectiveness and a decrease in new critical illness insurance policies, leading to increased operational pressure on existing policies [4][5]. Group 2: Return of Dividend-Based Health Insurance - The reintroduction of dividend-based long-term health insurance is seen as a response to the changing market dynamics, with the potential to enhance product attractiveness and stimulate growth in the health insurance sector [6][7]. - The regulatory support for dividend-based critical illness insurance is viewed as a milestone, potentially improving consumer welfare and providing a buffer against inflation [6][7]. - The current market environment is more favorable for the development of dividend-based products due to improved regulatory frameworks, heightened consumer awareness, and enhanced risk management capabilities of insurance companies [7][8]. Group 3: Advantages and Challenges - The main advantage of dividend-based critical illness insurance is the increasing policy value over time, which can help mitigate the impact of inflation on purchasing power [8]. - However, the uncertainty of dividends may lead to challenges in managing customer expectations, and the complexity of product design requires strong actuarial and investment management capabilities from insurance companies [8]. - To optimize the development of dividend-based long-term health insurance, companies should focus on clear product design, effective risk management, and enhanced customer communication [8].