Core Insights - The release of the "China Life Insurance Experience Table (2025)" marks a significant innovation in the precise pricing of insurance products, serving as the fourth independently developed life table in China [1][2] - The new life table indicates a general decline in mortality rates across all age groups, reflecting the achievements in economic and social development, while also extending the financial planning cycles for individuals regarding retirement and healthcare [2] Group 1: Evolution of Life Tables - The first life table was published in 1996, with subsequent updates every ten years to reflect changes in population structure and mortality rates [1] - The second life table in 2005 highlighted the decline in mortality rates due to improved living standards and healthcare conditions post-reform [1] - The third life table in 2016 showcased a significant increase in average life expectancy due to rapid economic growth [1] Group 2: Implications of the Fourth Life Table - The fourth life table reveals a nuanced risk distribution, with notable differences in life expectancy between genders and varying rates of mortality improvement across age groups [2] - This data necessitates a comprehensive review and adjustment of existing insurance products by companies, as longer life spans will extend the duration of pension payments [2] - The phenomenon of "living with illness" will become more common, prompting insurers to expand their responsibilities beyond mere payout upon diagnosis to include health management and rehabilitation services [2] Group 3: Strategic Shifts in the Insurance Industry - Insurance companies must transition from being "financial compensators" to "risk management partners" in the context of longevity [3] - Providing integrated solutions such as "insurance + health," "insurance + retirement," and "insurance + technology" will be essential for managing clients' lifestyles and reducing claims risks [3] - The fourth life table serves as a guideline for the insurance industry to address longevity risks, encouraging companies to adopt a more open, precise, and innovative approach to meet evolving challenges [3]

Core Viewpoint - The release of the fourth set of life tables by the Financial Regulatory Bureau and the Actuarial Association marks a significant update for the life insurance industry, with implications for product pricing and risk assessment starting January 1, 2026 [7][9]. Summary by Sections Life Table Update - The fourth set of life tables will officially be implemented starting January 1, 2026, following the previous update in 2016 [9][7]. - The new life tables reflect an increase in life expectancy, with an average increase of about 10 years compared to the first set [8][3]. - The average mortality rate has decreased by approximately 20% compared to the third set of life tables [22][31]. Pricing Implications - The decrease in mortality rates and the increase in life expectancy raise questions about potential price changes for insurance products [9][13]. - Risk protection products like term life insurance may see price reductions, while survival products such as annuities may experience price increases [13][42]. - The specific impact on pricing will vary by company, as product pricing is influenced by individual actuarial assessments [43][42]. Product Classification - The fourth set of life tables includes four tables, with the addition of a single life table reflecting individual mortality rates [14][15]. - The classification of products has been slightly adjusted, with non-pension life insurance products categorized differently based on their primary risk coverage [19][20]. - The focus on pension-related products has been emphasized due to the increasing aging population [17][18]. Life Expectancy Insights - The new life tables indicate an increase in life expectancy, with males expected to live an average of 85 years (up 2 years) and females 89 years (up 1 year) [36][33]. - The life expectancy reflected in the life tables is generally higher than the national average, suggesting that insured individuals may have better health management practices [39][36]. Regulatory Requirements - Insurance companies are required to regularly review mortality rates and adjust their pricing models accordingly, ensuring compliance with the new life tables [45][46]. - The regulatory framework emphasizes the importance of actuarial accuracy and the need for companies to establish mechanisms for evaluating deviations from expected mortality rates [46][45].

Core Viewpoint - The Financial Regulatory Bureau has issued a notification regarding the implementation of the "China Life Insurance Industry Experience Life Table (2025)", which will take effect on January 1, 2026, replacing the previous version from 2010-2013 [1] Summary by Categories Life Table Categories - The new life table consists of four categories: pension business table, non-pension business table one, non-pension business table two, and single life table [3] - Insurance companies must determine product rates based on the new life table and their own experience data, adhering to the principle of prudence in assessing mortality rates [3] Specific Product Guidelines - For endowment insurance and annuity insurance primarily focused on survival benefits, the pension business table should be used; other products should use non-pension business table two [3] - Health insurance and term life insurance should utilize non-pension business table one [4] - For whole life insurance primarily focused on death benefits, non-pension business table one should be used; other products should use non-pension business table two [5] - Other product types should select the applicable mortality table based on their specific responsibilities [6] Actuarial Responsibilities - The notification emphasizes the importance of actuarial roles in risk protection and measurement, requiring insurance companies to reasonably assess deviations in mortality rates from actual experience [6] - Companies must establish a verifiable and measurable retrospective mechanism, regularly conduct back-testing, and make necessary adjustments to improve actuarial accuracy [6] - If deviations from the mortality rate assessment range are identified, companies must detail the reasons in their annual actuarial reports and propose effective corrective measures, subject to board approval [6]

Core Viewpoint - The National Financial Supervision Administration has announced the implementation of the "China Life Insurance Industry Experience Life Table (2025)" starting January 1, 2026, which will affect how insurance companies assess their statutory reserve requirements based on mortality rates [1] Group 1: Implementation Details - The new life table will be mandatory for insurance companies when evaluating the minimum standard for statutory reserve liabilities [1] - Insurance companies are required to prudently assess the main responsibilities of their products and select the appropriate mortality rate table category [1] Group 2: Product-Specific Guidelines - For endowment and annuity insurance primarily focused on survival benefits, the pension-related mortality table should be used, while other products should use the non-pension-related mortality table [1] - Health insurance and term life insurance should utilize the non-pension-related mortality table one [1] - For whole life insurance primarily focused on death benefits, the non-pension-related mortality table one should be used, while other types should use the non-pension-related mortality table two [1] - Other product types should select the applicable mortality rate table based on their specific responsibility characteristics [1]