Life Insurance Preset Interest Rate Research Value Rises for the First Time

Preset Interest Rate Research Value Posts First Month-over-Month Rebound

The Insurance Association of China (IAC) recently released the latest preset interest rate research value for ordinary life insurance products. The data shows the indicator stands at 1.93%, up 4 basis points from the previous period's 1.89%. Notably, this is the first month-over-month rebound since the IAC began publishing the indicator in January 2025, officially ending a four-month streak of consecutive declines.

Against the backdrop of the insurance industry's digital transformation and the deepening adoption of intelligent actuarial practices, the preset interest rate — a core parameter in life insurance product pricing — carries significant implications for industry product strategies and consumer interests alike.

Behind the Rebound: Dual Drivers of Stabilizing Long-End Rates and Countercyclical Adjustments

Industry analysts attribute the month-over-month rebound in the preset interest rate research value to two main factors:

First, long-end interest rates have stabilized. The domestic macroeconomic environment has been gradually improving in recent months, and long-end bond market rates have shown signs of stabilization. This has provided support for long-term investment returns on insurance funds, in turn driving the preset interest rate research value to halt its decline and recover.

Second, countercyclical adjustment policies are taking effect. Regulators have continued to advance countercyclical adjustment measures, guiding the insurance industry toward rational pricing. While guarding against interest spread loss risks, these measures have also injected a degree of stability into market expectations.

From a technical perspective, many leading insurers have already adopted AI actuarial models and big data risk management systems to more precisely forecast and respond to interest rate trends. The application of intelligent pricing systems enables insurance companies to adjust product strategies more flexibly amid interest rate fluctuations, achieving a dynamic balance between risk and return.

Product Pricing Expected to Remain Stable in 2026

Under current regulatory rules, the preset interest rate research value serves as a key reference for regulators when assessing and adjusting the upper limit of life insurance preset interest rates. Multiple industry insiders have indicated that, based on current interest rate levels and the policy environment, the upper limit for life insurance preset interest rates is not expected to change in 2026, and overall product pricing across life insurance companies will remain stable.

For consumers, this assessment means that the return levels on savings-type, annuity-type, and other life insurance products will stay within the current range in the short term, allowing policyholders to make purchasing decisions with relative ease.

Outlook: Entering an Era of Refined Pricing Empowered by Technology

As AI technology is increasingly applied in actuarial science, risk assessment, and product design, the industry is accelerating its transition into an era of refined pricing. In the future, dynamic adjustment mechanisms for preset interest rates are expected to become more scientific and efficient with the support of intelligent algorithms. At the same time, continued advancements in regulatory technology (RegTech) will provide more transparent and timely data support for interest rate management.

Although the rebound in the preset interest rate research value is modest in magnitude, it sends a positive signal, indicating that the industry is gradually stabilizing after a period of adjustment. The future trajectory of this indicator will continue to depend closely on the macroeconomic landscape and capital market performance.