Core Viewpoint - The insurance industry is undergoing a structural transformation towards dividend insurance products in response to declining market interest rates and the need to manage liability costs and interest spread risks [1][3][11]. Group 1: Industry Trends - Since last year, insurance companies have been actively restructuring their business models, with a significant increase in the proportion of dividend insurance products in new offerings [1][3]. - In 2024, the original insurance premium income from dividend life insurance is projected to reach 765.87 billion yuan, a year-on-year increase of 4.12%, marking a positive growth after several years of decline [1][3]. - The overall life insurance industry is expected to see a premium income of 2.407 trillion yuan in 2024, with an 8.16% year-on-year growth, driven primarily by the growth of ordinary life insurance [3]. Group 2: Challenges and Consumer Perception - Despite the growth in dividend insurance, there are challenges in consumer acceptance due to the perceived lower guaranteed returns compared to traditional products [1][2]. - The low investment returns in 2023, coupled with regulatory limits on high returns, have led to many products achieving a dividend realization rate below 50% [2][7]. - The complexity of dividend insurance products and the need for consumer education pose additional hurdles for insurance companies [11]. Group 3: Product Structure and Financial Stability - Dividend insurance products are designed to share a significant portion of operational profits (at least 70%) with policyholders, which can help mitigate interest spread risks in a low-interest environment [3][4]. - The transition to dividend insurance is seen as a strategy to stabilize financial indicators, as traditional products require substantial reserve increases during interest rate declines, impacting reported profits [4][5]. - The establishment of special reserves for dividend insurance can help smooth out dividend levels over time, enhancing the ability to meet policyholder expectations [9][10]. Group 4: Future Outlook - The insurance industry is expected to continue focusing on dividend insurance, with companies like Xinhua Insurance aiming for dividend products to constitute at least 30% of their business by 2025 [6]. - The potential for improved investment returns and regulatory relaxation could lead to higher dividend levels in the future, benefiting both companies and policyholders [10][11]. - The sustainability of dividend realization rates will depend on the long-term stability of the companies' investment capabilities and effective management of customer expectations [10][11].