Core Insights - The insurance industry is undergoing a significant transformation as it transitions from the "14th Five-Year Plan" to the "15th Five-Year Plan," facing multiple challenges due to global economic changes, geopolitical shifts, declining interest rates, and capital market volatility [1][5] - A report by Tianzhi International highlights the current state of risk management in the insurance sector, indicating a shift from passive to proactive management strategies [5] Industry Challenges - The most significant challenges for insurance companies are the decline in market interest rates and intense competition, with over 65% of surveyed institutions identifying these as primary concerns [2] - Approximately 80% of institutions believe that regulatory scrutiny will continue to tighten, while 60% perceive an increase in external environmental risks, both of which have decreased by over 10 percentage points compared to 2024, indicating reduced anxiety and increased confidence in the industry [1] Risk Management Improvements - Over 98% of surveyed institutions report having established risk management systems that are either aligned with or ahead of their business development needs, continuing a trend of improvement since 2015 [2] - The report indicates that while overall risk management capabilities have improved, challenges remain in areas such as quantitative tools, data quality, personnel allocation, and inter-departmental collaboration [2][3] Technological and Data Challenges - There is a significant demand for optimization in risk management tools, with a rising focus on risk appetite frameworks, independent assessments, and stress testing [3] - The insurance industry is still in the early stages of digitalization and AI applications for risk control and compliance, with over 56% of institutions adopting a wait-and-see approach [4] Future Outlook - The industry is encouraged to enhance its quantitative analysis capabilities and data foundations while building a three-dimensional collaborative system of risk, capital, and business [4] - The future competition in the insurance sector will hinge on risk insight and decision-making efficiency, with a focus on identifying and seizing structural opportunities in uncertain environments [4]