Core Viewpoint - The estimated liability cost for the life insurance industry in 2024 is approximately 3.7%, which accounts for 76% of the industry's asset scale, indicating challenges in profitability and risk management for life insurance companies due to the rigidity of liability costs [1][8]. Summary by Sections Liability Cost Analysis - The liability cost is a key indicator for analyzing the profitability of life insurance companies, helping investors and management understand the company's profit model and efficiency [1]. - A lower liability cost typically indicates stronger market competitiveness for the company [1]. Financial Data Overview - In 2024, 17 life insurance companies reported a weighted average liability cost of 3.7% [8]. - The total asset scale of these 17 companies represents 75.8% of the life insurance industry, providing a good representation of the sector [7]. Investment Returns and Risks - The financial investment return rate for the life insurance industry in 2024 is projected to be 3.48%, with a comprehensive investment return rate of 7.45% [9]. - The 3.7% liability cost suggests a narrow interest margin, which could lead to risks in profitability and financial stability if investment returns do not meet expectations [9]. Statistical Insights - The descriptive statistics for the liability costs of life insurance companies in 2024 show a simple average of 3.4% and a median of 3.6%, with five companies having liability costs exceeding 4% [11]. - The estimation of liability costs is influenced by factors such as the cost of GMM contracts and the investment returns corresponding to VFA contracts [18].