A According to "Financial Times" reported that within two months the central bank cut interest rates three times in a row, and the sharply cut interest rates, making the RMB deposits one-year benchmark interest rate from the current 3.6 percent down to 2.52 percent of direct, close to a life policy 2.5 percent target ceiling rate, that is, the minimum liability insurance policy cost.
Expected in the industry for more than 80% of investment assets into fixed deposits, bonds, and other types of fixed-income assets of the insurance industry, the continued decline in interest rates means that the deposit interest income and lower income due bonds, insurance will further narrow the spread, Or even possible, "Li Chasun" (insurance funds investment yield lower than the effective operation of the insurance contract, the average interest rate target and caused losses).
Life at the end of the policy interest rates have come down hard
" 'Licha Sun' is behind the deeper reason is the unreasonable structure of the business and assets and liabilities do not match." Of the Central University of Finance and Economics president of the Insurance Institute Professor Hao Yansu said.
"There are three factors that life insurance companies to cut interest rates in the cycle of damage." Ping An Securities Shao-chin, chief researcher at the think, first of all has been the policy of re-investment rate of return will decline, followed by the new policy of price increases led to the decline in consumer demand, finally, Than the cost of the policy of slow decline in investment income, it will have a time difference.
Goldman Sachs recently made by the insurance industry analysis to the report, the 10-year government bonds yield from the mid-year from 4.5 to 4.6 percent currently down nearly 3 percent, the central bank continued to cut interest rates in the background, coupled with investors based on current investment The environment is more inclined to prefer low-risk bonds and increase investment, bonds investment income will decline further.
And as a result of fierce competition and the continued existence of the insurance companies in order to maintain the attractiveness of their products and market competitiveness, not necessarily with the same speed down at the end of life of the policy interest rate, the Goldman Sachs report said that in the case of rate cut, "the insurance industry investment Income than lower financing costs more quickly. "
In the initial stage of the life insurance companies, business structure in order to return the individual-life business, group life insurance business mainly with a single interest rate policy is scheduled to interest rates compared to the neglect of its long-term and characteristics of compound interest calculation in determining a fixed rate of interest related Products Rates, companies are not expected to significantly adjust interest rates in the future, resulting in the life insurance industry with the bank interest rate fluctuations and passive adjustment of interest rate products reservations.
At present, new life insurance products, including dividend-type universal life insurance products and insurance products even vote, with the exception of investment risk insurance for even by the insured to bear, to some extent to avoid the risk of fluctuations in interest rates of universal insurance, the settlement rate determined In the competitive environment in the same "up-down easy to difficult," characteristics.
"The first life insurance products to protect the return of rational functions, followed by a steady rate of implementation of market-oriented reform, which is effective against an important measure of interest rate risk." Hao said that the Soviet Union speech.
The other structural problem is the matching of assets and liabilities. In the capital market during the hot, a lot of high risk should be changes in consumer demand have been introduced as a selling point to high-yield financial products, corporate business strategy and product strategy is often subject to "expand the size of assets under management," the cause, and with a high level of interest rates The corresponding investment assets may not be effective allocation has been relatively narrow investment channels for insurance funds limited the ability to add value, so that investment income can not support the policy interest rate target.
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