Core Insights - The core value of offline insurance branches is being restructured as companies adapt to changing market dynamics and regulatory requirements [1][4] Group 1: Branch Network Restructuring - As of June 3, 2023, a total of 1,037 insurance branches were closed nationwide, marking a year-on-year increase of over 20%, with personal insurance companies accounting for 80% of the closures [1] - The trend of branch closures began in 2020, peaking in 2022 with 3,020 closures, followed by 2,065 in 2023 and 2,012 in 2024, totaling over 10,000 closures in five years [2] - The closures are primarily concentrated in county-level areas and some third and fourth-tier cities, focusing on branch offices and marketing service departments [2] Group 2: Digital Transformation and Consumer Behavior - The online insurance purchase rate is projected to rise from 73% in 2023 to 78% in 2024, while offline purchases are expected to decline from 85% to 79% [3] - The number of personal insurance agents has decreased from a peak of 9 million in 2019 to less than 3 million in 2024, leading to a diminished role for branches that primarily served agents [3] Group 3: Regulatory and Strategic Factors - The closure of branches aligns with regulatory demands for cleaning up inefficient institutions, as outlined in the 2021 guidelines from the former China Banking and Insurance Regulatory Commission [4] - Policies such as the comprehensive reform of auto insurance and the implementation of "reporting and operation integration" have pressured insurance companies to prioritize efficiency and adjust their branch layouts [4] Group 4: Evolving Role of Offline Branches - Despite the trend of closures, some insurance companies are still opening new branches, with 161 new branches established in the first five months of the year [7] - The role of offline branches is shifting towards providing comprehensive services such as wealth management, health management, and community financial services, rather than just sales [8]