Core Viewpoint - Investment-linked insurance and variable annuities combine insurance protection with investment functions, featuring a separate account that reflects investment performance, thus mitigating inflation impacts [2][4]. Group 1: Legal Interpretation of Investment-linked Insurance - Investment-linked insurance possesses both traditional insurance attributes and innovative design, with variable payouts based on investment performance rather than fixed amounts [4]. - The independent account in investment-linked insurance resembles a contractual securities investment fund, sharing characteristics such as pooled funds for investment purposes and risk-sharing among investors [5][6]. - The independent account's structure allows for asset segregation, ensuring that funds are not mixed with other insurance products, thus providing legal protection for policyholders in case of insurer bankruptcy [7]. Group 2: Institutional Arrangements for Investment-linked Insurance - The relationship between the insurance component and the independent account should be understood as a contractual linkage, allowing for the application of different legal rules to each component [9]. - Comparative legal frameworks, such as those in the U.S. and Japan, recognize the dual nature of investment-linked insurance, suggesting that it should be regulated under securities law to protect investor rights [10][11]. - The legal classification of investment-linked insurance should avoid rigid categorization as either insurance or securities, as this could lead to regulatory gaps and misapplication of laws [12]. Group 3: Legislative Improvements for Independent Accounts - Legislative improvements should include provisions in the Insurance Law to address the unique characteristics of investment-linked insurance and its independent accounts, reflecting the regulatory experience accumulated over the years [13]. - Expanding the definition of "asset management products" in the Securities Law is necessary to encompass investment-linked insurance, ensuring that it aligns with current market practices [14]. - Regulatory focus should address specific risks associated with independent accounts, including sales fraud, information asymmetry, and fiduciary duties of insurers [15]. Group 4: Risk Management and Regulatory Obligations - Financial institutions should adhere to suitability obligations to prevent mismatches between product risks and customer capabilities, thereby reducing sales fraud risks [16]. - Information disclosure obligations must be strengthened to ensure transparency in investment-linked insurance products, drawing from securities governance rules [18]. - Insurers, as fiduciaries, must fulfill their duties diligently, managing independent account assets in the best interest of policyholders, with legal consequences for breaches of trust [19].