CITIC SEC: Insurance product policies reshape the market landscape, with strength-based competition fully replacing fee-based competition.

CITIC SEC released a research report stating that insurance product policies have extended from specialized protection supply to clauses, rates, channel fees, and operating data. Comprehensive governance of non-auto insurance promotes re-filing of existing products and constrains non-compliant fees, while technology insurance and low-altitude insurance expand protection scenarios; demonstration clauses for medical insurance and participating insurance refine industry standards, predetermined interest rates are strictly constrained, and benefit illustration rules standardize sales presentations. Product-side policies are reshaping the market landscape, with strength-based competition fully replacing fee-based competition. In terms of allocation strategy, the dividend main line provides a high-certainty base position, with attention to companies focused on property insurance; the leading main line provides elasticity from landscape optimization, with attention to large insurance groups with strong capital strength, service capabilities, and asset-liability matching. CITIC SEC's main views are as follows: Since 2026, policies on the insurance product side have been implemented intensively The National Development and Reform Commission and other departments are promoting the construction of low-altitude insurance products and data platforms, and the National Financial Regulatory Administration has issued a comprehensive governance plan for non-auto insurance; the Insurance Association of China has successively solicited opinions on the revised draft of demonstration clauses for ordinary life insurance and the demonstration clauses for medical insurance and participating insurance. Health insurance measures in Beijing and Guangdong propose arrangements for linking medical insurance payments with medical services, and bancassurance fee and online marketing rules further constrain sales behavior. Core judgment one: Clause standardization is an important increment for product development The Insurance Association of China has solicited opinions on the revised draft of demonstration clauses for ordinary life insurance and the demonstration clauses for medical insurance and participating insurance, and industry texts on contract liability, renewal, and dividend disclosure are becoming more standardized; the non-auto insurance plan advances standardized clauses for major insurance types and re-filing of existing products. Demonstration clauses for life insurance are still at the opinion solicitation stage, and subsequent product adjustments are expected to need to be based on the formal text. Core judgment two: Rule front-loading and data backtracking jointly strengthen the "integration of reporting and execution" The draft demonstration clauses and benchmark pure risk loss rates provide references for product development and pricing, while the non-auto insurance plan and bancassurance fee management constrain filed rates and channel expenditures; the non-auto insurance plan intends to use an industry database and rate backtracking to verify rate execution, and the "insurance and disposal linkage" for hog insurance verifies the authenticity of underwriting and claims. Products, channels, data, and institutional accountability are gradually being connected. Core judgment three: Fee constraints push competition toward pricing and service capabilities Fee accounting for non-auto insurance and bancassurance channels is becoming stricter, and the space for obtaining business by relying on non-compliant fees is narrowing; standardized products place more emphasis on operational efficiency and continuous service, while specialized insurance types such as technology insurance and low-altitude insurance place more emphasis on loss data, risk sharing, and claims management. In life insurance, dividend fulfillment and health services affect customer choices. Industry main line one: Attach importance to property insurance pricing capability The re-filing of existing non-auto insurance products and the proposed fee allocation guidelines make property insurance companies more dependent on rate execution, expense control, and risk pricing. Attention should be paid to new tracks with institutional endorsement, such as the cataloging of technology insurance, low-altitude insurance, and professional liability insurance. Pricing capability is expected to become the key to competition in the next stage. Industry main line two: Attach importance to comprehensive operations and service capabilities Demonstration clauses for life insurance and health insurance measures in Beijing and Guangdong increase attention to dividend disclosure, medical services, and customer service, and actual dividends depend on dividend accounts and asset-liability management. In the next stage, more attention needs to be paid to channel value, health and elderly care services, risk selection, and asset-liability matching capability building. Investment strategy: Product-side policies reshape the market landscape, with strength-based competition fully replacing fee-based competition Regulatory policies are pushing liability costs into a downward channel and returning the competitive order to comprehensive strength, while the predictability of industry profitability and dividend capacity are simultaneously strengthening. In the short term, clause replacement, re-filing of existing products, and fee cleanup will raise compliance costs and suppress the profit elasticity of small and medium-sized institutions; in the medium term, the dividends from improved liability costs and the clearing out of fee competition are expected to concentrate in leading companies. In terms of allocation, the dividend main line provides a high-certainty base position, with attention to companies focused on property insurance; the leading main line provides elasticity from landscape optimization, and it is recommended to pay attention to large insurance groups with strong capital strength, service capabilities, and asset-liability matching. Risk factors: Downward movement in long-end interest rates; volatility in the equity market; product and channel adjustments for life insurance falling short of expectations; the effectiveness of non-auto insurance fee governance falling short of expectations; payouts for specialized insurance types exceeding pricing assumptions.