Core Viewpoint - The insurance industry is facing a significant adjustment in the predetermined interest rates for life insurance products, with expectations of a new low era in product pricing due to regulatory changes and market conditions [1][5][9]. Regulatory Changes - Starting from September 1, 2024, the upper limit for the predetermined interest rate of newly filed traditional insurance products will be set at 2.5% [1][5]. - From October 1, 2024, the upper limit for newly filed participating insurance products will be 2.0%, and the minimum guaranteed interest rate for universal insurance will be 1.5% [1][5]. - The regulatory framework will link predetermined interest rates to market interest rates, allowing for dynamic adjustments based on market conditions [1][4]. Market Expectations - The insurance industry anticipates that the new predetermined interest rate research value will likely remain below 2.25%, indicating a high probability of rate reductions [6][8]. - The expected adjustments could lead to a reduction of 25 to 50 basis points, potentially bringing the upper limit down to between 2.0% and 2.25% [7][8]. Impact on Product Sales - The anticipated reduction in predetermined interest rates is expected to increase the difficulty of selling traditional life insurance products, pushing companies to focus more on participating insurance products [3][9]. - Companies are actively preparing for the transition to new products and are seizing the current sales window to maximize sales before the rate adjustments take effect [3][9]. Strategic Shifts - Major insurance companies are shifting towards participating insurance products, which offer flexible returns and are seen as a viable option in a low-interest-rate environment [9][10]. - The trend indicates a growing acceptance of participating insurance among banks and clients, as traditional insurance products become less attractive due to lower yields [10][11]. Long-term Considerations - The reduction of fixed interest rates is viewed as a necessary step to mitigate risks associated with interest rate differentials, allowing for greater investment flexibility and potentially higher returns in the long run [11][12][13]. - The industry is expected to adapt by increasing the proportion of participating insurance products, which could alleviate pressure on liability costs and enhance investment opportunities [12][14].