Core Viewpoint - Dividend insurance is becoming a significant driver for the transformation of the life insurance industry, with decreasing preset interest rates reshaping competitive logic and product value boundaries [2][12] Group 1: Dividend Insurance Performance - Many life insurance companies have disclosed their cash dividend realization rates for 2024, with over half of the 129 products from five companies achieving a realization rate of 100% or higher, the highest being 306% [3][5] - The dividend realization rate reflects the ratio of actual dividends paid to expected dividends, indicating how well companies convert distributable profits into consumer payouts [3][5] - For example, Xinhua Life reported that 7 out of 21 dividend insurance products had realization rates exceeding 100%, with the highest at 122%, while Sunshine Life's 90 products had an average realization rate of 52.58% [5][6] Group 2: Regulatory Environment - The China Banking and Insurance Regulatory Commission issued a document aimed at curbing vicious competition in the dividend insurance sector, emphasizing the need for sustainable and reasonable dividend levels [9][10] - The document outlines six strict constraints that insurance companies must adhere to when determining dividend levels, including historical performance and capital strength [10][11] - The introduction of dynamic management mechanisms for dividend levels is intended to ensure that dividend decisions are an ongoing process throughout the product lifecycle [11] Group 3: Market Adjustments - The life insurance industry is experiencing a structural reshuffle due to continuously declining interest rates, prompting companies to adjust product designs and sales strategies [12][14] - Recent adjustments in preset interest rates, such as the reduction from 2% to 1.5% by Tongfang Global Life, reflect a proactive market response to regulatory changes and economic conditions [12][13] - The overall trend indicates a shift towards a focus on core insurance functions and professional capabilities, marking a critical transition for the industry [14]