Liang Tao, former vice chairman of China Insurance Regulatory Commission: Promote the transformation of insurance liability structure and focus on innovation of floating income products.

Former Deputy Chairman of the China Banking and Insurance Regulatory Commission, Liang Tao, today introduced at the release conference of the "White Paper on China's Family Risk Protection System" that as of August 31, 2025, the mainstream product in the life insurance industry is still traditional increasing and lifelong life insurance, with new single premiums accounting for over 70%. However, the liquidity of such products is easily affected by large interest rate risk in low-rate environments, which is not conducive to the sustainable development of the industry. This also creates an expectation of guaranteed principal and interest for customers, deviating from the essence of insurance being about protection. Therefore, in the new era, insurance companies should actively explore product transformation, especially in developing floating income products. By linking product returns to market performance, it not only effectively reduces the rigid cost of liabilities for insurance companies, but also helps households share surplus from early operations, resist inflation, and meet diversified wealth management needs.