Guolian Minsheng Securities: The importance of the bank insurance channel continues to be prominent. Leading insurance companies are expected to further increase market share.

Guolian Minsheng Securities has released a research report stating that the bank-insurance channel is expected to become an important source of premium and NBV growth for the life insurance industry in 2026, with the advantage of leading companies expected to expand. Supported by strong demand from residents for stable-yielding financial products, banks' emphasis on contribution from service fees, and the continued deepening of the bank-insurance channel integration, new premium and NBV margin of the bank-insurance channel are expected to improve steadily, thereby supporting the positive growth of NBV for bank-insurance. Top insurance companies, with richer products and better services, are favored by customers, and bank-insurance is inclined to strengthen cooperation with top insurance companies leading to the predicted increase in market share within the bank-insurance channel. Key points from Guolian Minsheng Securities include: Strong demand for residents to move deposits driving new premium growth in the bank-insurance channel Due to factors such as low risk appetite of residents, maturation of a large amount of resident deposits, and continuous lowering of bank deposit interest rates, some residents may shift their funds from deposits to insurance products. Currently, dividend-type insurance products selling well in the insurance industry have relatively higher returns and lower volatility, in line with the steady investment needs of bank clients. With insurance companies continuing to strengthen cooperation with bank branches, dividend-type insurance products are expected to further attract residents' off-balance-sheet funds. Narrowing net interest margins and increased competition prompt banks to focus more on generating income and enabling insurance services Currently, banks face challenges such as narrowing net interest margins and increased competition in wealth management businesses, necessitating the development of non-interest income, improvement in product offerings, and overall service capabilities to enhance their competitiveness. For non-interest-related businesses, the importance of intermediary income brought by selling insurance products to banks in increasing non-interest income scale and diversifying income sources continues to rise; for product offerings and overall service capabilities, savings-type insurance products, protection-type insurance products, and services such as health management and retirement communities provided by insurance companies can help banks better serve their customers. Leading insurance companies with deep roots in the bank-insurance channel and a layout in the health and wellness ecosystem are expected to increase their market share in the bank-insurance channel Driven by the integration of banks and insurers, which lowers costs for the bank-insurance channel and the relaxation of regulatory restrictions on "one-to-three" cooperation between banks and insurers, cost competition in the bank-insurance channel is becoming more rational. In this context, it is difficult for small and medium-sized insurance companies to compete for market share in the bank-insurance market by investing a large amount of fees, while top insurance companies with brand value and comprehensive service capabilities are likely to be favored by customers and banks, enabling them to stand out in the competition in the bank-insurance market. Risk warning: Risks of intensified industry competition; economic recovery falling short of expectations; decline in long-term interest rates; significant changes in regulatory policies; weak customer demand; existing deviations in calculations.