Core Viewpoint - The insurance intermediary sector in China is undergoing a significant contraction due to stricter regulations, intensified market competition, and the need for industry consolidation, leading to a substantial number of institutions exiting the market [1][2][4]. Group 1: Regulatory Environment - Since 2025, the Jilin Provincial Financial Regulatory Bureau has been actively optimizing the insurance intermediary market, resulting in the cancellation of 62 insurance professional intermediary institutions by mid-June, a decrease of 11.7% from the beginning of the year [1]. - The regulatory authorities have initiated a "cleaning and quality improvement" campaign aimed at eliminating non-compliant and weak institutions, with a goal to streamline the market over the next three years [2][4]. - The number of insurance professional intermediary institutions has been declining for six consecutive years, with a total of 103 institutions exiting the market from 2019 to 2024 [2]. Group 2: Market Competition - The insurance intermediary sector has faced increasing competition from internet platforms and large insurance companies that are establishing their own channels, which has squeezed the traditional intermediaries' market space [3]. - Many traditional intermediaries are struggling to adapt to the digital transformation, leading to their natural elimination from the market [3][4]. Group 3: Industry Trends - The implementation of the "reporting and execution consistency" policy has significantly compressed the profit margins for insurance intermediaries, with average commission levels dropping by 30% across the industry [5]. - The market is witnessing a shift where intermediaries must transition from being "product salespeople" to "risk management consultants," enhancing their professional capabilities to provide tailored solutions [9]. - New insurance intermediaries focusing on technology and risk management services are gaining traction in the capital market, with several planning to go public [8]. Group 4: Strategic Recommendations - To thrive in a competitive environment, insurance intermediaries should enhance service quality, leverage advanced technologies like big data and AI, and deepen customer relationships [8][9]. - Emphasizing compliance and building brand trust are essential for long-term success in a regulated market [9].

Core Viewpoint - The insurance intermediary sector in China is undergoing a significant contraction, driven by stricter regulations, intensified market competition, and the need for industry consolidation [3][5][9]. Regulatory Environment - Since 2025, the Jilin Provincial Financial Regulatory Bureau has been actively optimizing the insurance intermediary market, resulting in the cancellation of 62 insurance intermediary institutions by mid-June, a decrease of 11.7% from the beginning of the year [1]. - The national trend shows a continuous decline in the number of insurance intermediaries, with a total of 103 institutions exiting the market over the past six years [3][4]. Market Competition - The competitive landscape has become increasingly fierce, with internet platforms and large insurance companies establishing their own channels, thereby squeezing the survival space of traditional intermediaries [4][5]. - Many traditional intermediaries are struggling to adapt to digital transformation, leading to their natural elimination from the market [4][9]. Industry Consolidation - The insurance intermediary market is experiencing consolidation, with larger institutions acquiring smaller ones to expand market share and service range [5]. - The average commission level across the industry has decreased by 30% due to the implementation of the "reporting and execution consistency" policy, which has pressured intermediaries to transform their business models [7][8]. New Value Positioning - To remain competitive, insurance intermediaries must transition from being "product salespeople" to "risk management consultants," enhancing their professional capabilities to offer tailored protection plans [9]. - Embracing digitalization through big data and artificial intelligence is essential for optimizing operations and improving customer engagement [9]. - Focusing on niche markets or specific scenarios to create specialized brands can provide a competitive edge [9]. Emerging Trends - New insurance intermediaries that focus on technology and risk management services are gaining traction in the capital market, with several planning to go public [10].