Group 1 - The core viewpoint is that participating insurance, which combines guaranteed and variable returns, is becoming increasingly popular in the insurance market as companies view the transition to participating insurance as a strategic move to mitigate "interest spread loss" risks [1] - As of June 2025, insurance companies have launched 403 new life insurance products this year, with 151 of them being participating insurance products, accounting for 37%, an increase of 9 percentage points compared to the entire year of 2024 [1] Group 2 - Participating insurance returns consist of guaranteed benefits and dividend benefits, with the guaranteed benefit depending on the product's predetermined interest rate, which will decrease from 2.5% to 2% before October 2024, and further down to 1.75% by the end of August this year [2] - The dividend benefit is influenced by various factors including the illustrated dividend rate, the method of dividend distribution, policy year, coverage amount, and dividend allocation rules [2] - Regulatory requirements dictate that at least 70% of the distributable surplus from participating insurance must be allocated to policyholders, but the actual amount depends on the company's operational performance [2] Group 3 - Participating insurance features a smoothing mechanism and special reserve concept to mitigate market volatility, allowing companies to reserve part of the surplus during good investment periods to distribute during poor market conditions, providing clients with stable returns [3] - Despite the smoothing mechanism, policy dividends remain non-guaranteed, and there may be years with zero dividends [3] - For consumers, it is crucial to recognize that the primary function of insurance products is risk protection, and they should consider coverage, premium burden, and dividend potential rather than being solely attracted by high returns [3] - For life insurance companies, maintaining a reasonable dividend realization rate is essential; excessively high rates may boost short-term sales but jeopardize sustainability, while excessively low rates could lead to policy cancellations [3]