Core Insights - The release of the "China Life Insurance Experience Life Table (2025)" marks the introduction of the fourth life table in China's life insurance industry, with a significant average mortality rate decrease of approximately 20% compared to the previous table, reflecting an accelerated trend towards longevity in society [1][2] - The implementation of the new life table is expected to lead to dual price changes in the market, with life insurance prices potentially decreasing while prices for pension annuity products may face upward pressure due to increased longevity [1][4] - The industry must promote cross-sector collaboration between health and pension services to address the challenges posed by longevity risk, emphasizing product innovation and policy incentives to create a resilient risk protection system [1][7] Industry Changes - The fourth life table includes four tables: pension business table, non-pension business table one, non-pension business table two, and a new single life table, with mortality rates decreasing by 15%-27% across different demographics [2] - The average life expectancy has increased, with males reaching 85 years (up 2 years) and females 89 years (up 1 year) in the pension business table [2] - The life table update is the first major revision in nearly a decade, directly impacting insurance product pricing, reserve assessments, and risk management [1][3] Product Pricing Dynamics - The decrease in mortality rates and increase in life expectancy will lead to opposite price movements for protection-type and savings-type insurance products [3] - Prices for term life insurance and whole life insurance may decrease due to lower mortality rates, while pension annuity prices may rise as insurance companies face longer payout periods [4][5] - The current market response has been cautious, with no significant increase in consultation or sales activity observed following the announcement of the new life table [5] Market Trends and Consumer Behavior - The insurance industry is expected to shift from a product-selling approach to offering long-term solutions and managing long-term liabilities, driven by the new life table [7] - There is a growing need for insurance companies to integrate health management and pension services, creating comprehensive solutions that enhance product value [7][8] - The consumer decision-making process is becoming more diversified, influenced by social media and market promotions, although large-scale impulsive buying is not anticipated [5][6] Regulatory and Structural Implications - The new life table requires insurance companies to establish a retrospective mechanism to address deviations in mortality rates, prompting increased investment in actuarial models and data systems [8] - The industry is encouraged to develop market-based longevity risk tools and integrate financial products with health and pension services to enhance competitiveness [11] - The update of the life table is seen as an opportunity for the industry to transition towards high-quality development, moving from homogeneous price competition to differentiated service competition [8][10]

Core Insights - The release of the new life table marks a significant update in China's life insurance industry, reflecting a trend towards increased life expectancy and lower mortality rates, which will impact insurance product pricing and risk management [2][3][4] Industry Overview - The new life table, effective from January 1, 2026, shows an average mortality rate decrease of approximately 20% compared to the previous table, with life expectancy for males increasing to 85 years and for females to 89 years [1][3] - The life table is updated approximately every ten years, with the last updates occurring in 2005 and 2016 [3] Product Pricing Implications - The decline in mortality rates is expected to lead to a decrease in prices for risk-based insurance products like term life insurance, while prices for longevity products such as annuities may rise due to increased payout durations [4][5] - The insurance pricing mechanism is influenced by mortality rates, survival rates, and discount rates, with the new life table expected to reduce the "death difference" space for life insurance companies [4][5] Market Reaction - Despite the significant changes, the immediate market response has been cautious, with no notable increase in consultation or sales activity observed [7][8] - Sales strategies are adapting to leverage the upcoming changes, with a focus on promoting products during peak sales periods [7] Long-term Industry Trends - The implementation of the new life table highlights the need for a collaborative approach between health and pension sectors, emphasizing the importance of integrated solutions for long-term risk management [9][10] - The insurance industry is encouraged to innovate and develop products that combine financial services with health management and elder care [10][12] Recommendations for Future Development - Experts suggest that the industry should focus on developing market-based tools for longevity risk management, integrating financial products with health services, and enhancing consumer education regarding annuity pricing mechanisms [15]

Core Viewpoint - The company reported significant growth in total premiums and investment income for the third quarter of 2025, indicating a strong operational performance and market position. Financial Data - Total premiums reached RMB 669.645 billion, a year-on-year increase of 10.1%, with renewal premiums at RMB 451.611 billion (up 10.0%) and new premiums at RMB 218.034 billion (up 10.4%) [6][7] - Total investment income was RMB 368.551 billion, reflecting a 41.0% increase year-on-year, with an investment return rate of 6.42%, up 104 basis points [6][7] Operational Analysis - The company achieved a net profit attributable to shareholders of RMB 167.804 billion, a substantial increase of 60.5% compared to the previous year [7] - The company maintained a low surrender rate of 0.74%, indicating stable customer retention [6] - The sales force comprised 657,000 personnel, with a focus on professional development and quality improvement [6] Shareholder Information - The total number of ordinary shareholders and the top ten shareholders' holdings were reported, with no significant pledges or freezes noted for the majority of shareholders [5] Investment Strategy - The company plans to invest RMB 20 billion in a joint equity investment plan with related parties, focusing on sectors such as semiconductors, digital energy, and smart electric vehicles [14][21][28] - The investment aims to enhance returns and support the real economy, aligning with national strategic goals [27][28] Governance and Compliance - The board of directors and supervisory board confirmed the accuracy and completeness of the quarterly report, ensuring compliance with relevant regulations [2][3][11]

Core Insights - The release of the "2025 Experience Life Table" marks a significant milestone for the life insurance industry in China, transitioning from price competition to a focus on data accumulation, risk identification, and actuarial capabilities [1][2][3] Industry Overview - The new life table is based on nearly a decade of comprehensive policy data, making it the largest sample size in the global insurance market, and aims to reflect the current and future survival and mortality probabilities of the insured population [2][3] - The life table indicates a continuous increase in life expectancy, with an approximate rise of 10 years compared to the first life table, and shows significant improvements in child mortality rates and reductions in mortality rates in economically underdeveloped regions [3][4] Regulatory Framework - The Financial Regulatory Bureau has issued guidelines for the application of the new life table, emphasizing the need for insurance companies to scientifically and accurately set insurance liabilities and offer diverse, high-quality insurance products [4][5] Pricing Impact - The new life table introduces a dual-track pricing model that combines industry benchmarks with company-specific experience, allowing for differentiated and scientific management of insurance products [7][8] - The expected decrease in mortality rates for term life insurance products may lead to lower premiums, while products like annuities and pensions may see an increase in rates due to longer life expectancies [7][8] Risk Management Enhancements - The introduction of a "mortality deviation assessment mechanism" requires insurance companies to evaluate the potential deviations in mortality rates and implement a retrospective mechanism to optimize actuarial models [8][9] - This dynamic risk management process will necessitate increased investment in actuarial models, data systems, and professional talent to enhance decision-making capabilities [8][9]

Core Insights - The release of the "2025 Experience Life Table" marks a significant milestone for the life insurance industry in China, transitioning from price competition to a focus on data accumulation, risk identification, and actuarial capabilities [1][3][4] Industry Developments - The new life table will be implemented starting January 1, 2026, and is expected to enhance risk management and operational stability within the industry, leading to a more mature and sustainable market ecosystem [1][3] - The fourth life table reflects changes in mortality rates and life expectancy, with a notable increase of approximately 10 years in life expectancy compared to the first life table [4][5] Data and Methodology - The fourth life table is based on nearly a decade's worth of comprehensive policy data, making it the largest sample size in the global insurance market [3] - It includes four categories of tables: pension-related, non-pension type one, non-pension type two, and a single life table, which is a first in using individual identification numbers for mortality research [7][8] Pricing and Risk Management - The introduction of the new life table is expected to lead to more precise pricing and risk management, reducing the risk of "death loss" and improving the financial foundation of insurance companies [4][9] - The notification mandates that insurance companies must consider both the new life table and their own experience data when determining product rates, leading to differentiated pricing strategies [9][11] Regulatory Framework - The notification introduces a "mortality deviation assessment mechanism," requiring companies to evaluate potential deviations in mortality rates and establish a retrievable mechanism for regular assessments [11][12] - The regulatory body emphasizes the importance of enhancing data governance and protecting consumer rights while ensuring the effective application of the new life table [12]

Core Insights - The fourth set of life tables, released by the China Actuarial Association, indicates an increase in life expectancy, a decrease in child mortality rates, and a reduction in mortality rates in underdeveloped regions, which will directly impact insurance product pricing [2][5]. Group 1: Life Table Overview - The fourth set of life tables is a significant update since the third set was published in 2016, reflecting nearly a decade of data collection from the insurance industry [2][5]. - The new life tables will be officially implemented starting January 1, 2026, and are based on comprehensive historical policy data, making them a crucial tool for pricing, reserve assessment, and risk management in the insurance sector [4][5]. Group 2: Key Characteristics of the New Life Table - The fourth life table shows three notable trends: an increase in life expectancy by approximately 10 years compared to the first life table, significant improvement in child mortality rates across all age groups, and a marked decrease in mortality rates in economically underdeveloped areas [5]. - The changes in the life table reflect the advancements in China's economic and social development, as well as improvements in healthcare [5]. Group 3: Impact on Insurance Pricing - The updated life tables will enable insurance companies to set more precise insurance product pricing and risk management strategies, thereby reducing the "death difference loss" risk and better managing longevity risk [8][10]. - Different types of insurance products will be affected variably by the new life tables; for instance, term life and whole life insurance products may see a decrease in pricing due to lower mortality rates, while annuity products may face price increases due to longer expected payout periods [10]. Group 4: Product Innovation and Market Dynamics - The release of the new life tables is expected to drive product innovation in the insurance industry, particularly in response to the aging population and the need for diverse retirement financial solutions [8][10]. - The transition period before the implementation of the new life tables may lead to a surge in sales of certain insurance products, such as whole life and annuity products, as companies adjust to the new pricing structures [10].

Core Insights - The release of the "2025 Life Table" by the China Actuarial Association marks a significant update in nearly a decade, reflecting improvements in life expectancy and mortality rates among different demographics [1][2][3] Group 1: Life Table Overview - The new life table is based on nearly ten years of comprehensive insurance policy data, making it the largest sample size in the global insurance market [2] - The fourth life table shows a notable increase in life expectancy, with an approximate rise of 10 years compared to the first life table [2][3] - Child mortality rates have significantly improved, particularly among younger age groups, and mortality rates in economically underdeveloped regions have decreased [2][3] Group 2: Impact on Insurance Pricing - The updated life table will influence insurance product pricing, allowing companies to set more accurate premiums based on refined mortality data [4][5] - Different types of insurance products will utilize specific life tables, leading to varied pricing outcomes; for instance, term life and whole life insurance may see lower costs due to decreased mortality rates, while annuity products may face price increases due to longer expected payout periods [5][6] - The life table update is expected to drive product innovation, particularly in the areas of retirement and long-term care insurance, to better meet the needs of an aging population [4][6]

Core Viewpoint - The release of the fourth mortality table for the life insurance industry in China reflects a significant update in mortality rates and life expectancy, impacting premium pricing for various insurance products [3][6][9]. Group 1: Release of the Fourth Mortality Table - The China Actuarial Society officially released the "China Life Insurance Experience Mortality Table (2025)" on October 29, marking the fourth version since the last update in 2016 [3][4]. - The new mortality table is based on nearly ten years of comprehensive policy data, making it the largest sample size in the global insurance market [5][6]. Group 2: Changes in Mortality Rates and Life Expectancy - Compared to the previous table, the fourth mortality table shows a decrease in mortality rates by approximately 20% to 30% and an increase in life expectancy by about 2 years [8][9]. - The average life expectancy in China is projected to reach 79 years by 2024, up from 76.34 years in 2015, reflecting improvements in healthcare and living standards [6]. Group 3: Impact on Insurance Premiums - The decline in mortality rates is expected to lower premiums for term life insurance products, while premiums for annuity products may rise due to increased life expectancy [9][10]. - The actual impact on premiums will vary by company, as pricing strategies will also consider market conditions, interest rates, and other factors beyond the mortality table [10]. Group 4: Regulatory Guidelines - The notification accompanying the new mortality table outlines specific requirements for its application, including the need for insurance companies to use the table in determining minimum statutory reserves for various insurance products [8][12]. - Insurance companies are required to establish a review mechanism to ensure the accuracy of their actuarial models and to report any significant deviations in mortality rates [12].

Core Insights - The release of the "2025 Experience Life Table" by the China Actuarial Association aims to scientifically reflect the actual risk status in the life insurance industry, enhancing risk management levels [1][2] Summary by Sections Importance of the Life Table - The experience life table is crucial for insurance institutions as it serves as a foundational infrastructure for pricing, reserve assessment, and cash value calculations, ensuring the stable operation of the industry [1] Background and Need for Update - The previous life table, published in December 2016, was effective in promoting scientific pricing and improving risk prevention in the insurance sector. However, changes in life expectancy and mortality rates necessitated an update to better reflect current risks [2] Key Outcomes of the New Life Table - The new life table includes three main achievements: 1. A newly compiled experience life table that reflects the latest mortality experience of the insured population, providing a scientific reference for pricing and preventing systemic risks [3] 2. The first compilation of a single life table based on individual identification numbers, enhancing comparability with population mortality rates [3] 3. A comprehensive summary of project outcomes, including reports and educational materials aimed at various audiences [3] Impact on Insurance Products - The introduction of the new life table is expected to lead to lower pricing for term and whole life insurance products, while potentially increasing pricing for annuity products [2]

Core Viewpoint - The release of the "2025 Experience Life Table" by the China Actuarial Association marks a significant update in the life insurance industry, reflecting changes in population life expectancy and mortality rates, which will lead to profound transformations in insurance product design and pricing [1][3][5]. Group 1: Life Table Overview - The 2025 version of the life table includes various tables for pension and non-pension businesses, serving as a crucial tool for pricing, reserve assessment, and risk management in the insurance sector [3][5]. - The life table indicates a 10-year increase in average life expectancy since the first version, alongside a significant reduction in child mortality rates, showcasing improvements in healthcare and social governance [3][5][6]. Group 2: Impact on Insurance Products - The updated life table will provide essential data for designing more scientifically sound insurance products, particularly in the areas of pension and death risk coverage [6][7]. - The life table's insights will allow insurance companies to better meet the evolving needs of consumers, especially in terms of retirement and death risk products [6][7]. Group 3: Pricing Implications - The decrease in mortality rates and increase in life expectancy suggest potential reductions in premiums for life insurance products, while pension products may see price increases due to extended payout periods [7][8]. - The actual adjustments in premiums will depend on various factors, including company strategies and market conditions, leading to a structural differentiation in pricing across different insurance products [7][8]. Group 4: Regulatory Framework - The Financial Regulatory Authority has issued guidelines to ensure the proper use of the life table, aiming to protect consumer rights and promote healthy industry development [9][10]. - The guidelines will enforce standards for premium determination, reserve assessments, and dividend distributions, ensuring fairness and transparency in the insurance market [10]. Group 5: Future Outlook - The industry is looking towards the future with advancements in artificial intelligence, which may allow for real-time adjustments in insurance premiums based on individual risk profiles [11]. - This shift towards more personalized and fair pricing models reflects the ongoing evolution of the insurance landscape, driven by technological advancements and data analytics [11].