Core Insights - The ongoing low interest rate environment and the rising demand for wealth management among residents are driving a significant product transformation in China's insurance market, with dividend insurance evolving from a supplementary option to a core battleground [1] - By the third quarter of 2025, over 40% of new insurance products launched by life insurance companies will be dividend insurance, a substantial increase from 28.05% in 2024 [1] - Sunshine Life's "Zijing No. 1 Whole Life Insurance (Dividend Type)" stands out in this competitive landscape due to its differentiated positioning and comprehensive solution that integrates protection, service, and asset inheritance [2] Product Analysis - The competitive strength of a dividend insurance product lies in its solid terms and the ability to understand customer needs [1] - "Zijing No. 1" offers flexible payment options and lifetime coverage, catering to various customer demographics, with the maximum age for applicants set at 73 [2] - The product guarantees a death benefit that increases at a compound rate of 1.75% annually from the second policy year, providing a stable risk protection net [2] - The transparency of the dividend mechanism and the ability to distribute over 70% of the surplus to customers are key competitive advantages [2] Value-Added Services - The integration of value-added services is a unique highlight of "Zijing No. 1," with Sunshine Life leveraging its resources to create a comprehensive service system [3] - Services include access to quality medical resources, personalized health management, and tailored elderly care solutions, enhancing the product's appeal beyond traditional insurance [3] Investment Strength - The investment capability of Sunshine Insurance serves as a "ballast" for dividend insurance, linking customer dividends to the company's investment performance [4][5] - Sunshine Insurance has a total investment asset scale of 591.86 billion yuan, with a net investment income of 9.79 billion yuan, reflecting a 9.4% year-on-year increase [6] - The company's investment platform has received recognition for its stable performance and risk management, further solidifying its competitive edge [6] Industry Dynamics - The rise of dividend insurance is part of a strategic choice for the insurance industry to address internal and external challenges and achieve high-quality transformation [8] - Dividend insurance helps alleviate the pressure of interest rate spreads and enhances product attractiveness, particularly in a low-interest environment [9] - The positive performance of the asset side supports the realization of dividends, creating a virtuous cycle between the liability and asset sides [10][11] Regulatory and Consumer Trends - Recent regulatory focus on compliance and transparency in dividend insurance operations is fostering a stable operating environment [12] - Consumer awareness and understanding of dividend insurance have matured, leading to a preference for companies with stable long-term operations and investment management capabilities [12] Conclusion - The rise of dividend insurance is a necessary transformation in response to changing interest rates and resident needs, with Sunshine Insurance positioned advantageously due to its differentiated product strength and robust investment capabilities [13] - As industry resources concentrate on high-quality insurers, those with long-term value investment capabilities will continue to lead the dividend insurance market [13]

Core Viewpoint - The insurance industry is experiencing a significant shift towards dividend insurance products, which are becoming the dominant market force as companies adapt to a low-interest-rate environment and seek to mitigate risks associated with interest rate spreads [1][2]. Group 1: Market Trends - Major insurance companies such as China Life, Ping An Life, Sunshine Life, and Xinhua Insurance have launched new dividend insurance products, marking a transition from traditional fixed-return savings products to floating-return products [2][3]. - Dividend insurance products, characterized by a dual structure of guaranteed and floating returns, are increasingly favored due to their ability to meet consumer demand for stable long-term returns in a low-interest-rate environment [2][4]. Group 2: Regulatory Environment - Regulatory guidance is pushing the industry towards floating-return products, as highlighted in the State Council's opinions on enhancing regulation and promoting high-quality development in the insurance sector [3][4]. - The recent regulatory framework emphasizes the need for insurance companies to maintain sustainable dividend levels through prudent long-term investment strategies [5]. Group 3: Product Complexity and Competitiveness - The complexity of dividend insurance products requires higher professional standards from insurance agents, as they must effectively communicate the uncertainties associated with dividend payouts to clients [4][5]. - Companies are increasingly focusing on differentiating their products through innovative design and value-added services, creating a competitive landscape that extends beyond mere interest rate comparisons [6][8]. Group 4: Service Integration - Insurance companies are integrating their products with healthcare and elderly care services, enhancing customer value through comprehensive service ecosystems [6][7]. - For instance, Sunshine Life's dividend insurance product offers access to premium medical resources and tailored elderly care services, reflecting a shift towards a more holistic approach to customer needs [7][8]. Group 5: Investment Performance - The performance of dividend insurance products is closely tied to the investment outcomes of the insurance companies, with established firms demonstrating superior long-term investment capabilities [5][6]. - Sunshine Insurance, for example, reported significant growth in net investment income and total investment returns, indicating a strong ability to deliver on dividend promises [5].