Universal insurance settlement rate slid to 4% rate cut cycle, leading to lower yield

From the beginning of July, some insurance companies have lowered interest rates universal insurance settlement.

September, a number of insurance companies once again cut interest rates universal insurance settlement. As of October 13, in addition to Universal Fidelity account to maintain a steady growth so far this year, part of the life insurance companies have been announced over the past month universal insurance settlement rate, in August takes over the general decline of the status quo, continue to remain lower September is the main tone of the settlement rate.

Rate cut cycle, leading to lower yield

October 29 evening, the People's Bank of China announced on October 30 from financial institutions reduced the benchmark interest rate of RMB deposits and loans, one-year deposit interest rate from the current 3.87 percent down to 3.60 percent, down 0.27 percentage points; one-year Benchmark lending rate from the current 6.93 percent down to 6.66 percent, down 0.27 percentage points; This is the third time within two months the central bank to cut interest rates.

Industry: a new round of the central bank to cut interest rates move in the bank's insurance companies make large deposits yield an agreement to reduce space and increase the spread of insurance proceeds. Coupled with the volatility of the market itself, lead to universal insurance settlement of the general interest rate cut.

The source also said that: even more important reason for this is that since August has been the China Insurance Regulatory Commission to convene the "rectification". The meeting made it clear that rapid development of the Bank of security products, and increase channels of a single, universal insurance company's major products are silver in the post sales channels, the Bank of China Insurance Regulatory Commission on Post-channel "orange warning" to allow the Bank channel universal postal insurance Clearing a downward trend in interest rates.

Orient Securities in the insurance industry, a senior analyst for media interviews, said: Ruoshi, because of the insurance funds investment return rate, universal insurance settlement of consecutive interest rate cut is "expected things." If the next two years Ruoshi pattern of the capital market is still difficult to change, together with the possible arrival of the rate cut cycle, the settlement also lower interest rates is not impossible.

This reporter has learned that insurance funds to invest in bonds on the proportion of general accounting for 50% -60%, while the rate cut will lead directly to the insurance funds investment yield bonds lower, it can be extracted reserve smooth also be reduced, and this will Clearing interest rates have a negative impact on competitiveness.

Each situation is different insurance companies

A senior actuarial told reporters: Although the various insurance companies lowered their interest rate risk everything, but because each company's premium different sources, so this round of interest rate risk everything for each company to reduce the impact is great There are different.

He told reporters: universal insurance for some of the operating time of insurance, such as peace, Taikang, such as peace, universal insurance premium income accounted for the entire company may premium income of 30% or more, while China Life Insurance (601,628, It shares) and Xinhua Life Insurance, such as universal access to insurance market relatively late, the overall size of the premium does not matter very much. I believe this round of price comparison would have had to rely on universal insurance premium income of the company have a greater impact on some.

"Clearing the reduction in interest rates will reach a point where the original sales of universal insurance to reduce some of the temptation, but Ruoshi in the market, do not want to bear the high-risk investors choose to risk everything is good. The insurance companies must also need to make the original product mix Some adjustment. Like many insurance companies have introduced protection of insurance products that control their own insurance premiums as a steady growth initiatives. "So that the actuarial people.

And the five-year time deposits than loss of competitiveness

In the past the Bank of universal insurance sales channel for insurance products, silver and security staff always to the 5-year time deposits to investors, for example, but to cut interest rates in the cycle, the Almighty to hand over the settlement of interest rate risk has its own answer Reduced competitiveness.

The current 5-year bank deposit rate to 5.13 percent, and Miandiao a personal interest tax, the introduction of this policy, universal insurance steadily down the pace of nature and not comparable to 5-year time deposits.

Miss Gu Wenchen financial management: If you do is invest in universal insurance could be a lot of other investment products to replace, or more investors from the insurance point of view, to do something to protect their own planning, both to protect and part of the proceeds Is a good thing.