With the current downturn in deposit rates and rumors that “the predetermined interest rate of 3.5% insurance will be withdrawn from the shelves in a large area”, banks and insurance institutions have set off a wave of sales of incremental whole life insurance products on social platforms. The reporter visited recently and learned that regarding the market rumors that “the predetermined interest rate of 3.5% insurance products will be lowered to 3.0% after June 30”, there has been no official notice from the regulatory authorities. However, some insurance companies revealed that after June 30, the company will stop selling some products or lower the predetermined interest rates of some products.
It is worth noting that in recent years, the premium income of insurance companies in the bancassurance channel has grown rapidly. In 2022, the premium income of the bancassurance channel of the five major listed insurance companies will all achieve positive year-on-year growth, with a year-on-year growth of up to more than 300%. In this regard, analysts in the industry believe that under the background of the adjustment of personal insurance agent channels, the proportion of premium income from bancassurance channels is expected to further increase.
Predetermined interest rate of 3.5% life insurance products bank sales enthusiasm is high
“Recently, deposit interest rates have been lowered, and I want to configure some stable financial products with slightly higher yields. The bank’s wealth management manager pushed insurance products to me.” Ms. Zhang, a citizen of Guangzhou, told reporters that recently, she often brushed bank and insurance staff in the circle of friends. The content of “the insurance product with a compound interest rate of 3.5% is about to be discontinued”.
The reporter visited and learned that the current deposit interest rate is down, and consignment insurance products such as incremental whole life insurance products have become the key hot-selling “objects” of banks.
“The first batch of quotas for our incremental whole life insurance products have been robbed, and now this batch has won a quota of 200 million yuan. Recently, many customers are robbing.” A customer manager of a joint-stock commercial bank in Guangzhou told reporters, but he said that if If you want to use this money within three years, it is not recommended to buy this incremental whole life insurance product. It is recommended to buy this product with money that is not urgently needed, and you can get better returns by putting it aside for at least four years.
The account manager showed a simulation calculation table of an incremental whole life insurance product to all media reporters of Guangzhou Daily. Assuming that the policyholder is a 30-year-old woman who insures 20,000 yuan per year and pays premiums continuously for 3 years, the first three years of the product are the construction period, and the cash value growth rate in the fourth year is 3.4%, and it increases year by year thereafter. At that time, the cash value growth rate will exceed 4%. The simulation calculation table shows that the cash value paid in 3 years is higher than the premium paid in 4 years, and the principal is safe and worry-free. The income of this product is determined, and 3.5% of the insured amount is compounded for life, which is written into the contract.
“Among the products we are currently promoting, the compound interest 3.5% incremental whole life insurance product is considered to be a product with relatively high income and guaranteed capital. Now we are pushing it because this product may be off the shelves at the end of the month.” A related staff member of a state-owned bank in Guangzhou He told the reporter that it is not only the banks that are pushing now, but the insurance companies are pushing even harder.
Liu Yinping, an analyst at Rong 360 Digital Technology Research Institute, pointed out that banks have always been very active in recommending insurance products. One of the reasons is that banks and employees can get higher commissions and commissions from them. “The pressure on banks is not small at present, especially with the continuous narrowing of bank interest rate spreads, their demand for increasing intermediary business income is very urgent.” Zhu Junsheng, research director of the China Insurance and Pension Research Center of Tsinghua University PBC School of Finance, told reporter.
An analysis by a person from a Guangdong branch of a life insurance company believes that, on the one hand, it is related to the current reduction in bank deposit interest rates, and insurance products with a predetermined interest rate of 3.5% must be relatively more popular; It will be reduced to 3.0% after the end of June” and other news, so banking channels and insurance agents have a high sales enthusiasm.
The proportion of life insurance bancassurance channel premium income is expected to further increase
It is worth noting that in recent years, the bancassurance channel of insurance companies has grown rapidly. The reporter sorted out the life insurance sector of the five major A-share listed insurance companies in 2022 and found that the premiums of the bancassurance channel have all achieved positive year-on-year growth. Among them, the bancassurance channel of CPIC Life Insurance under China Pacific Insurance The revenue growth rate was the highest, with a substantial increase of 308.7% simultaneously.
Specifically, China Life Insurance, Ping An Life Insurance, PICC Life Insurance, CPIC Life Insurance, and New China Life Insurance will realize bank insurance channel premium income of 63.415 billion yuan, 10.989 billion yuan, 44.03 billion yuan, 30.478 billion yuan, and 43.931 billion yuan in 2022, respectively, a year-on-year increase. 28.6%, 18.28%, 3.1%, 308.7%, 7.8%.
Data from the insurance industry also show that in the first quarter of this year, the original insurance premium income of personal agency channels was 750.684 billion yuan, a year-on-year increase of 1.92%, accounting for 47.58%, a year-on-year decrease of 3.24 percentage points. The bank post agency channel realized original insurance premium income of 666.543 billion yuan, an increase of 18.13% year-on-year, accounting for 42.25%, an increase of 3.31 percentage points year-on-year. Among them, the new policy premium was 410.502 billion yuan, a year-on-year increase of 13.68%; the first-year regular premium was 187.945 billion yuan, exceeding the first-year regular premium scale of the personal agent channel, and a year-on-year increase of 59.65%.
Industry analysts believe that in recent years, under the circumstances of the decline in the size of the individual agent team and the reduction in the premium scale of the individual agent channel, insurance companies have invested more resources in the development of bancassurance channels. “Banks have a wide coverage and obvious customer advantages. Therefore, from the current point of view, the development potential of the bancassurance channel is still great.” Zhu Junsheng said.
“At present, for some insurance companies, the bancassurance channel has become more than half of the channel; at the same time, insurance business commission income has also become an important income component of banks.” Song Zhanjun, deputy secretary-general of the China Insurance Research Institute of Beijing Technology and Business University He told reporters that in the future, under the background of the adjustment of individual insurance agent channels, the proportion of premium income from bancassurance channels is expected to further increase.
(Article source: Guangzhou Daily)
Article source: Guangzhou Daily
Original title: The scheduled interest rate of 3.5% insurance products is counting down?Banks set off an upsurge in agency sales of incremental whole life insurance products
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