Core Viewpoint - The article emphasizes the importance of developing commercial insurance annuities to manage longevity risk, which is crucial in the context of an aging population in China and globally. It highlights the need for innovative financial products and regulatory support to enhance the pension system and address the financial pressures associated with increased life expectancy [1][3][6]. Group 1: Longevity Risk Management - Longevity risk refers to the financial pressure on pension systems when actual lifespans exceed average life expectancy, necessitating a robust management mechanism to mitigate this risk [1]. - The establishment of a longevity risk management mechanism can effectively disperse risks and promote the development of China's pension system along a unique financial path [1][2]. - Innovations in insurance and financial markets, such as longevity risk reinsurance and securitization, are essential for the high-quality development of commercial pension annuities [2][3]. Group 2: Aging Population and Financial Implications - The aging population presents both challenges and opportunities, with the financial implications being a central concern. Commercial insurance annuities play a vital role in addressing these challenges by providing structured financial planning for retirees [3][4]. - The development of new industries related to aging, such as socialized elderly care and the transformation of labor-intensive industries through technology, requires comprehensive financial support, where insurance institutions can significantly contribute [4]. Group 3: Enhancing Pension System Structure - Commercial insurance annuities are crucial for the growth of the second and third pillars of the pension system, enhancing the attractiveness of these systems and alleviating pressure on the first pillar [6][7]. - The introduction of commercial insurance annuities can diversify investment products within the pension system, leading to better risk management and value preservation [6][7]. Group 4: Challenges and Recommendations - The insurance industry faces challenges in managing long-term liabilities due to the mismatch between long-term liabilities and short-term assets, as well as increasing financial risks associated with longevity [3][4][11]. - Recommendations for improving the commercial insurance annuity market include better risk management practices, enhanced collaboration between insurance companies and banks, and government support through tax incentives [7][11]. - The development of flexible and stable annuity products is essential to meet the diverse needs of an aging population, requiring advancements in actuarial models and reinsurance support [11][12].