Cut: space spread compression rate of decline in investment income insurance

The People's Bank of China announced the decision to cut interest rates, the industry believes that the insurance industry's negative impact on the neutral side.

Bank channel short-term insurance products are the vast majority of the proceeds from the spread, and spread has been very limited. Insurance industry analyst at Everbright Securities Xiao Chao-hu of the view that interest rates will be room for further spread compression, insurance companies, investment earnings downward pressure.

Dividends in terms of risk, the investment bank focused on wholesale deposits and bonds, after the rate cut of the proceeds of these products will be lowered then. Insurance companies to lower investment income, dividends to policy holders will naturally be reduced, for long-term insurance policy holders, will be some impact, but the ultra-Hu Xiao also pointed out that "the cost of each insurance company On transfer to a clearing interest rates, dividends will not be released until one year risk, relatively speaking, the reaction was rather slow. "

On the other hand, must be accompanied by the clearing cut down interest rates, business costs. Since September, various insurance companies universal insurance billing rates have remained at a "down" state. Data show that in September, Ping Life insurance universal, the universal personal bank insurance settlement from the August rate of 5.50 percent fell to 5.25 percent, universal personal insurance settlement rate fell to 5.75 percent from 5.50 percent, Taikang Life's outstanding wealth and ease financial management Two powerful insurance settlement rate fell to 5.50 percent from September's 5.25 percent, to life and the lives of Life Kim Chi-hsin slam of the settlement rate in September has dropped to 5.20 percent.

Orient Securities analyst Wang Xiaogang insurance industry, said: "If the next two years Ruoshi pattern of the capital market is still difficult to change, together with the rate cut cycle, the settlement rate down to is not possible." At the same time, the bank will cut interest rates to lower sales of insurance policies Degree of difficulty, the premium will certainly increase.

Although the insurance industry's rate cut on the positive and negative impact on the basic balance, but the industry pointed out that in the near future due to insurance stocks is not optimistic about the trend, if the insurance rate of return on investment remains in the doldrums, the market will further decline in the performance of insurance companies have a concern.