Group 1 - The core viewpoint of the article is that insurance companies are increasingly turning to insurance asset-backed securities (ABS) as a new direction for investment, particularly in a declining interest rate environment, with expectations for significant growth in this area over the next few years [2][5][10] - The scale of insurance ABS has surged, with 15 insurance asset management institutions registering 66 asset-backed plans in the first three quarters of this year, representing a year-on-year growth of 25.1% [3][4][10] - The shift from a "registration system" to a "registration system" for insurance asset-backed plans in September 2021 has led to rapid growth in this sector, maintaining over 50% year-on-year growth from 2020 to 2023 [4][10] Group 2 - Insurance companies favor ABS due to their need for long-term, stable returns to meet future liabilities, especially as bond market yields decline and equity market volatility increases [5][6] - ABS typically consists of long-term projects with low liquidity, such as infrastructure and high-quality debt, providing stable cash flows that align well with the long-term nature of insurance funds [5][6] - The current yield spread of ABS products is relatively high, with different types of ABS showing an overall credit yield spread exceeding 30 basis points, making them attractive to low-risk investors like insurance funds [5][6] Group 3 - ABS provides stable and predictable cash flow returns, which can match the duration needs of life insurance liabilities, making it an ideal investment for insurance companies [6][7] - The policy environment is supportive of ABS, with recent initiatives encouraging banks and insurance institutions to increase their investment in asset-backed plans [7][8] - The types of underlying assets for ABS registered in recent years include consumer finance, small and micro loans, supply chain assets, and restructuring debts, all of which align with national strategic support areas [8] Group 4 - ABS can generate significant returns for investors, as the performance of insurance ABS is closely linked to the investment returns of insurance companies, which directly affect policyholder dividends and account yields [9][10] - If insurance companies can achieve returns above 5% through ABS, they can better meet their commitments to policyholders and potentially offer higher dividends [9][10] - The potential for individual investors to participate in ABS is currently limited, but as some insurance asset management institutions expand their roles, opportunities for trading ABS and REITs may increase in the future [9][10] Group 5 - The expectation is that ABS will transition from a "supplementary allocation" to a "core strategy" for insurance funds, with a projected increase in the proportion of ABS in alternative investments from 12% to 25% over the next three years [10][11] - Key factors for this transition include the quality of underlying assets, the channels for trading ABS, and the valuation methods used, which could enhance investor confidence and liquidity [10][11] - If these factors are realized, ABS could become a new foundational investment for insurance funds during the ongoing interest rate decline [11]