Core Viewpoint - A new round of insurance "interest rate cuts" has begun, with companies adjusting their product offerings in response to changing market conditions, particularly the decline in preset interest rates for insurance products [1][2][12]. Group 1: Insurance Product Adjustments - Many life insurance products with a preset interest rate of 2.5% are being discontinued ahead of the third quarter, as companies restructure their product matrices to focus on "protection + savings" [1][3]. - Tongfang Global Life has launched new dividend insurance products with a preset interest rate reduced from the market cap of 2% to 1.5%, marking the start of this new round of interest rate cuts [2][3]. - Other companies, such as Zhongying Life and Fosun Baodexin, have also begun to suspend sales of various insurance products, indicating a broader trend of product discontinuation across the industry [6][8][11]. Group 2: Market Trends and Expert Insights - Industry experts suggest that the gradual reduction of preset interest rates is a necessary adjustment for the insurance sector to lower liability costs and promote sustainable development [3][12]. - The shift towards lower preset interest rates is expected to lead to a more competitive environment focused on risk management, asset allocation, and service value rather than solely on high interest rates [1][3]. - The current market environment, characterized by declining interest rates, is pressuring insurance companies to increase their equity allocations, as over 78% of their asset-liability costs remain in the 3%-4.025% range [13][14]. Group 3: Future Outlook - The long-term trend indicates a transition from high guaranteed returns to low guaranteed returns combined with floating interest rate products, which may enhance the equity allocation space for insurance funds [12][14]. - As the guarantee costs decrease, the insurance industry is expected to adapt by focusing on more flexible product offerings that align with changing consumer needs and market conditions [12][14].

Core Viewpoint - A new round of insurance "interest rate cuts" has begun, with companies restructuring their product matrices to focus on "protection + savings" as many 2.5% guaranteed rate savings insurance products are being phased out ahead of the third quarter [1][3]. Group 1: Insurance Rate Adjustments - The first move in the new round of insurance "interest rate cuts" was made by Tongfang Global Life, which launched new dividend insurance products with a guaranteed rate reduced from the market cap of 2% to 1.5% [2][3]. - The adjustment of guaranteed rates is seen as a necessary response to environmental changes, aimed at reducing the liability costs for insurance companies and promoting sustainable development in the industry [3][12]. Group 2: Product Discontinuation - Many insurance companies are ceasing the sale of various 2.5% guaranteed rate savings insurance products as they prepare for the upcoming changes in the market [3][10]. - Specific products that have been discontinued include the "Xinyingjia" whole life insurance and "Yuehuo" life annuity insurance from Zhongying Life, effective from June 13, 2025 [4][10]. Group 3: Market Trends and Future Outlook - The insurance industry is expected to transition from high guaranteed returns to low guaranteed and floating rate products, reflecting a broader trend towards risk-sharing [12][14]. - The current market environment, characterized by declining interest rates, is putting pressure on insurance asset allocation, necessitating an increase in equity investments to enhance flexibility [13][14].