Core Viewpoint - The resurgence of dividend-type critical illness insurance is anticipated in the market, driven by recent policy support from the National Financial Regulatory Administration [1][3][4] Policy Support - The National Financial Regulatory Administration's guidance encourages insurance companies with good regulatory ratings to develop dividend-type long-term health insurance products [3][4] - Major insurers like China Ping An and Xinhua Insurance have expressed their commitment to research and develop dividend-type critical illness insurance products in response to the new policy [5][6] Market Dynamics - The traditional critical illness insurance market has faced challenges, leading to a renewed interest in dividend-type products as a potential solution [4][7] - The introduction of dividend mechanisms is seen as a way to enhance the attractiveness of long-term health insurance products and innovate their offerings [5][6] Product Concerns - There is a distinction between genuine dividend-type critical illness insurance and products that are merely labeled as such, with the latter often being criticized as "pseudo-dividend critical illness insurance" [6] - True dividend-type critical illness insurance should link dividends directly to the performance of the critical illness insurance itself, rather than relying on the performance of a separate dividend insurance component [6] Industry Challenges - The insurance industry faces significant hurdles in reintroducing dividend-type critical illness insurance, including the need for accurate pricing, stable investment returns, and strict underwriting practices [8] - Insurers must navigate complex financial considerations, including capital requirements and customer expectations, to successfully launch these products [8][9] Consumer Acceptance - Gaining consumer trust and acceptance of dividend-type critical illness insurance will be crucial for its long-term success in the market [9]

Core Insights - The rise of short-term critical illness insurance products is being driven by their affordability and flexibility, appealing to consumers with limited budgets who seek immediate coverage [1][4][5] Summary by Sections Product Features - Short-term critical illness insurance typically offers coverage for one year, with premiums around 100 yuan, making it an attractive option for budget-conscious consumers [1] - Coverage amounts can be selected based on individual needs, with options for 200,000, 500,000, or 1,000,000 yuan [1] - Many products have a flexible age limit, covering individuals up to 70 years old [1] Consumer Feedback - Consumers like Mr. Wu and Mr. Deng have expressed satisfaction with short-term critical illness insurance, highlighting its affordability and the ability to provide financial support for unexpected medical expenses [2] - Mr. Deng noted that the option for monthly premium payments helps alleviate financial pressure when insuring multiple family members [2] Market Trends - The popularity of short-term critical illness insurance is partly due to the rising costs of traditional health insurance products, which have seen average premiums increase to 300-600 yuan [4] - Insurance companies are strategically introducing low-cost short-term products to fill the gap in the market for middle and lower-income consumers [4] Limitations - Short-term critical illness insurance lacks guaranteed renewability, requiring consumers to reapply each year, which poses a risk of being denied coverage as they age [3][4] - The payout structure differs significantly from traditional long-term insurance, with lower maximum claims and potential out-of-pocket expenses for policyholders [3] Target Demographics - Short-term critical illness insurance is particularly suited for two groups: young graduates seeking temporary coverage and individuals already holding long-term insurance looking for additional short-term protection [5]

Core Viewpoint - The National Financial Regulatory Administration has issued guidelines to support insurance companies with good regulatory ratings in developing dividend-based long-term health insurance products, marking a significant return of dividend-based critical illness insurance to the market after over 20 years [1][6]. Group 1: Market Environment Changes - The market for traditional critical illness insurance has been struggling due to continuous declines in the predetermined interest rates, which have dropped from 4.025% in December 2019 to 2% as of September 2023 [4][5]. - The popularity of low-premium medical insurance has further contributed to the decline in traditional critical illness insurance sales, as consumers increasingly favor savings-type insurance products with dividend features [4][5]. - The health insurance industry is facing challenges such as reduced sales force effectiveness and a decrease in new critical illness insurance policies, leading to increased operational pressure on existing policies [4][5]. Group 2: Return of Dividend-Based Health Insurance - The reintroduction of dividend-based long-term health insurance is seen as a response to the changing market dynamics, with the potential to enhance product attractiveness and stimulate growth in the health insurance sector [6][7]. - The regulatory support for dividend-based critical illness insurance is viewed as a milestone, potentially improving consumer welfare and providing a buffer against inflation [6][7]. - The current market environment is more favorable for the development of dividend-based products due to improved regulatory frameworks, heightened consumer awareness, and enhanced risk management capabilities of insurance companies [7][8]. Group 3: Advantages and Challenges - The main advantage of dividend-based critical illness insurance is the increasing policy value over time, which can help mitigate the impact of inflation on purchasing power [8]. - However, the uncertainty of dividends may lead to challenges in managing customer expectations, and the complexity of product design requires strong actuarial and investment management capabilities from insurance companies [8]. - To optimize the development of dividend-based long-term health insurance, companies should focus on clear product design, effective risk management, and enhanced customer communication [8].