Monetary policy to interest rate risk of accidents linked end-of-life

The same green, sometimes on behalf of environmental protection, sometimes mean deficit.

A similar, joint interest in different economic cycles, and the situation is completely different results.

October 8, the central bank announced that from October 9, 2008 down from a one-year yuan loans to keep the benchmark interest rate 0.27 percentage points in all other grades of the deposit and loan period for the benchmark interest rate adjustment, but rather went through last year's 6th rate hike After the interest rate linked products, ushered in the birth of the first cut their interest rates. October 29, the central bank to cut interest rates again, the industry believes that China has entered a cycle of rate cuts.

Actuarial said that this shift in monetary policy announcement at the same time, also declared the rampant Bancassurance market for more than a year of joint interest rates may be on this end-of-life insurance.

Tiao Kong interest rates

According to our statistics, many need to pay interest on the tax rate linked financial products in the central bank announced the rate cut after the product's current revenue to do the corresponding adjustment (see Table 1).

Among them, Kim Yong Hua of Hua-insurance joint-income families and property, personal accident insurance comprehensive (3-year), which cut interest rates before the interest at the rate of 5.77 percent, compared with 5.0455 percent of the current interest rates, the adjustment to -0.7245% of the current central bank Time deposit rates higher than the same period of 0.2755 percent.

At the same time, some of the interest tax-free on levy would have on the (insurance company said revenue for the feedback, to help customers pay), which cut interest rates twice its current rate of reduction in terms of clearing more intuitive.

For example, the sun of the insurance Fu-family home investment property insurance (one year), before the settlement rate cut in interest rates and banks for the same period a year 4.14 percent when interest rates on the 9th for the first time after the reduction of the product with the inter-bank Rate cut this down 0.27 percent, the current interest rate of 3.87 percent. Tai Cheung's home finance comprehensive insurance to its family-like, for the first time in October after the rate cut is the same as the bank reduced the rate of 2-year settlement of the current interest rates have come down 0.27 percent, the current interest rate of 4.41 percent.

In addition to the above-mentioned companies, insurance Bohai fengli 2 / 2, also belonging to the agencies, linkage interest rate products, but the company's customer service staff, although the central bank made an adjustment of interest rates, but the company did not have two Products to adjust interest rates notice.

In life insurance, insurance Ruifu De-fu Full House health care plan (3 year), to cut interest rates before the interest at the rate of 5.50 percent, in October for the first time after the rate cut to the current 5.40 percent, down 0.10 percent, even more than the bank interest rates 0.27 percent higher over the same period.

Down? Down or not!

However, due to the synchronization of the State Council announced the savings deposit interest income waiver to levy personal income tax, which resulted in savings deposits actually did not reduce earnings. For deposits or with the actual income of a match, according to our statistics, the central bank lowered the benchmark interest rate, the interest rate more than other joint financial risk does not reduce the current rate.

Land of a 3-year insurance - financial peace of mind-family home property insurance, to cut interest rates before the interest at the rate of 5.53 percent, for the first time in October to cut interest rates after the central bank cut interest rates, which remain the product of the current rate 5.53 percent .

The company, a staff told reporters that peace of mind at home (3 years) is a need to pay taxes, according to the company in the design of this product linked to the interest rate, the interest rate adjustment of the product is based on the central bank's interest rate Later, and with the central bank adjusted the rate, 0.4 percent higher than the bank after deducting 5.0 percent of revenue. However, due to the cancellation of interest tax, the tax products. The interest rate linked products in accordance with the standards, the current 3-year bank interest at the rate of 5.13 percent, coupled with higher interest rates than the 0.4 percent standard, the current interest rate remains 5.53 percent.

Bringing peace to the home-win-win financial and property insurance (3), cut its interest rates before and after the first rate cut will do likewise to 5.73 percent. The interest rate adjustment provision was 0.60 percent higher than the central bank, and with the earth - peace of mind at home, the abolition of the after-tax interest, the central bank in the current interest rate plus 5.13 percent at 0.60 percent is still 5.73 percent. The product has been launched in 2005 and has some insurance policies expire can be paid. As far as customer service, product launch in the early 3-year bank deposit rate is 3.19 percent, after 3 years, coupled with last year's six rate increases, the product of three years a total of about 12.57 percent interest rate. The customer service also said that if the bank interest rates remain at current levels, do not change, 3 years after the product of accumulated interest rate up to 17.19 percent. But on the 30th of this month the central bank announced the rate cut, the two companies product of the current income will be changed. Home insurance earth peace of mind (3-year), financial management and bringing peace to a win-win (3-year) with the bank rate down 0.36 percent over the same period (see table 1).

The first few months of Fengtouzhengjin People's Insurance Department, life insurance and health aspects of human security - often worry-free value-added insurance plans are also contributing to the interest rate linked products, and profits BOHAI Feng 2 / 2, the same agencies, So far the company has not in the interest rate changes and make the appropriate notification.

As a kind of joint interest rates on behalf of the peak in interest rates beyond the concept of linkage, "often without any worry," there are still similar to the risk of universal insurance proceeds at the end. However, the more attractive is the product through its paid no less than the premium of 5.54% loyalty bonus expire, as well as the maturity of about 6.61 percent of insurance premiums of more than part of the proceeds of the design, leading to the insured if Expire no accident insurance, regardless of the current bank deposit interest rates, with the ultimate protection can be achieved by the end of the total proceeds of about 12.15 percent, or insurance proceeds at the end of the year at about 4.05 percent.

These people said, which means that, with other interest rate-linked insurance, even if at the end of the interest rate down to a very low level, the need to pay at least an annual interest rate of 4.05 percent.

According to our statistics, by June 2008, 9380 yuan for each regular worry (corresponding to the amount of 10,000 yuan insurance) premiums paid over a three-year period up to 894.3 yuan loyalty award, along with the amount of insurance premiums and the difference between the fixed 620 yuan (10000-9380) and if there is no insurance during the incident, the three-year period of earnings to nearly 16.15 percent, equivalent to annual revenue of about 5.4 percent. In the same period, the three-year after-tax bank deposit interest at the rate of 5.13 percent, "Chang worry-free" for nearly a low of 27 basis points.

However, the above-mentioned products currently on sale only in the sunshine of the insurance Fu home (1) and Fu full house two products. Bohai's staff said that although the previous short-term moratorium on the sale of products, but will be launched before the end of a 2-year short-term financial products.

In addition, the short-term financial security as insurance, which is different from deposits paid in advance to pay interest on demand deposits of operation, such as its surrender in advance usually been more losses. For example, China and Thailand Cheung financial-family home insurance (2 years), 10,000 yuan will be the principal interests of the surrender in the first 13 months to reach 10,000 yuan (Paul), Kim Yong-Hua and its related products show The products in two years after the surrender in order to preserve capital.

Natural end-of-life

The above-mentioned sources, the benchmark interest rate U-turn down the current situation is already an undisputed fact.

"This means that the interest rate linked products in the interest rate channel in its anti-floating interest rate and inflation through the streets, but to cut interest rates in the channel, the downward spiraling interest rates even if the bank is relatively the same period of time, the loss of competitiveness . "

Previously, the central bank's previous rate increases, the financial risk of short-term interest rate increases, the peak reached 5.87% (Hua comprehensive personal accident insurance), which far outweighs its momentum even belong there at the end of insurance proceeds and The savings is a substitute for universal insurance products, such as in Shanghai, PICC Health has more than half a year's time, with 3-7 million per month in terms of premium income, including sweeping peace, China Life Insurance (601,628, it shares), Xinhua Life, and other senior Chinese and foreign.

"However, the rate cut has exposed a previously overlooked easily." He said, "interest rate linkage is not just only on high, in addition to anti-inflation, but also because of its floating interest rates eventually lead to better earnings during the peak period of fixed Proceeds varieties, such as bank deposits. "

He pointed out that with the bank time deposits, the interest rate linked products are used in sub-calculation. For example, if the current bank interest rate in the 3-year time deposit of 5.41% in 3 years, regardless of the central bank to do on how to adjust interest rates, the deposit interest rate is not changed. On the contrary, the interest rate linked products is in the interest rate the central bank to adjust interest rates on the basis of an adjustment, and the use of sub-calculation methods, benchmark interest rates any upward or downward effects are synchronized in the same period of the sub-income.

"This means that, even in the absence of regulatory intervention, such products will soon be the natural demise."

Fund-type products revenue

Insurance companies to launch financial products than a rate linked, there is another part of the funds and similar products.

On the market today to launch the names of non-life insurance "fund" products are mainly China and Thailand sound investment, China and Thailand as well as financial management on the 3rd Bao Ping An Insurance's financial management.

According to our statistics, as of October 14, 2008, the three products have been issued at a price below which, Ping Bao financial management and prudent investment in China and Thailand net Yisu Shui into three. However, in mid-September to mid-October, because some of the good news, in this type of fund product cycle, or over the previous few months, there is a marked improvement (see table 2), Ping Bao-only financial loss of 1.5 percentage points, a loss The most robust investment in China and Thailand are also only a loss of 3 percentage points.

It should be noted that this year, Ping Bao-only financial loss of 29 points, and the stability of China and Thailand compared with less loss of nearly 20 percentage points.

The reason for the different product design must be mentioned. According to public information, financial management Bao Ping in the stock on the configuration for 0-70% of the rights and interests of China and Thailand sound investment ratio is 30% -70%.

The industry believes that it is precisely because the interests of the products of different minimum investment requirements, resulting in revenue of the two products on the wide gap.