Core Viewpoint - The insurance industry is facing severe "involution" challenges characterized by strategic homogeneity, vicious competition, and regulatory responses aimed at promoting healthy development [1][2]. Group 1: Industry Challenges - The insurance sector is plagued by issues such as price wars, excessive competition, and a lack of differentiation among companies, particularly among small and medium-sized insurers [2][3]. - The trend of "small but comprehensive" strategies among many small insurers has led to increased operational costs and intensified homogeneity in competition [2][3]. - The overall growth rate of insurance premiums has slowed, with a projected increase of approximately 5.7% in 2024, down 3.43 percentage points from 2023, indicating a significant decline from previous years [3]. Group 2: Regulatory Responses - Regulatory bodies across various regions have implemented measures to combat "involution," including negative lists for involution-style competition and guidelines to curb price and fee wars [1][3]. - There is a call for a more refined and directive regulatory framework that encourages differentiation and innovation within the insurance sector [4][5]. - Recommendations include establishing a tiered regulatory system that adjusts oversight based on company ratings and encourages regional innovation and the development of specialized insurance products [4][5].