According to the Zhixun Finance APP, mainland insurance stocks fell across the board in early trading. As of the time of publication, China Pacific Insurance (02601) fell 4.22% to HKD 19.3, New China Life Insurance (01336) fell 1.65% to HKD 14.34, and China Life Insurance (02628) fell 1.68% to HKD 10.54.

Media reports indicate that the reservation rate of life insurance products is likely to be reduced again. The reservation rate of traditional life insurance products may be reduced from 3% to 2.5%, with an adjustment period of one month. For investment-oriented products, the guaranteed upper limit of bonus insurance may be adjusted to 2%, and the flexible premium insurance may be adjusted to 1.75%, with an adjustment period of two months. Industry insiders believe that overall, the pace of cost reduction for insurance companies' liabilities is significantly slower than the decline in investment returns, and they face greater pressure from interest rate spreads. It is expected that there is further room for downward adjustment of the reservation rate of traditional life insurance products in the future.

Haitong Securities pointed out that listed insurance companies disclosed premium data for June, with pressure on new life insurance policies in the second quarter due to a high base, but improvement in property insurance growth rate. The bank stated that it is bullish on the development of the elderly care industry in the insurance industry's long-term debt in 2024; the yield of ten-year government bonds is still low, and if the economic outlook improves in the future and long-term interest rates rise, the investment pressure of insurance companies will be significantly eased.