Participating Insurance Becoming Market Trend: AIX Seizes Opportunities to Lead the Way

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As more consumers adopt a conservative and risk-averse investment approach, there is an increasing demand in the market for asset management solutions that can withstand economic fluctuations and provide stable returns. To meet this demand, many insurance companies have recently introduced participating insurance products that are both secure and growth-oriented.

Participating Insurance Accounts for Nearly 40% of the Market

Slogans like "Participating insurance helps you navigate through economic cycles", "For managing extra funds, consider participating insurance" have become more common. Since the insurance industry launched its 2025 New Year’s Sales Kickoff season, there has been a noticeable increase in the promotion and sales of participating insurance products.

According to data from the China Insurance Association, since the fourth quarter of 2024, a total of 414 new life insurance products have been launched, with 157 being participating life insurance products, accounting for 38%. Meanwhile, 231 new pension insurance products were introduced, of which 80 were participating pension insurance products, making up 35%.

Participating insurance refers to products where the insurer shares a portion of its profits (which exceed expectations) with policyholders, according to a fixed percentage.

As a product that offers both protection and investment, participating insurance has gained increasing popularity among consumers, especially as traditional interest rates decline and market volatility increases. In 2024, the maximum rate for regular insurance products dropped to 2.5% in September and the cap for participating insurance products set at 2% in October.

In 2023, government policies encouraged insurance companies to focus on participating insurance products, and major companies have indicated that this will be a key area in the future. Industry insiders believe that since 2024, more life insurers have been shifting to participating insurance, with a growing consensus that it will be the industry's dominant product for the foreseeable future.

Who is Participating Insurance Best Suited For?

For insurance companies, participating insurance is a versatile product with both growth and protective benefits, thanks to its flexible returns structure.

The returns of participating insurance are guaranteed benefits and dividends. The guaranteed benefits are tied to the product's predetermined interest rate and represent the minimum return that the insurer guarantees. The dividends, on the other hand, are tied to the company’s performance and the product’s settlement rate, and these may vary.

According to an experienced insurance consultant at AIX, participating insurance is ideal for individuals looking to save for important future expenses, such as children’s education or retirement. With longer coverage periods and the potential for return growth, participating insurance helps policyholders achieve their long-term financial goals. While dividends may vary, reputable insurance companies usually deliver stable returns over time. Therefore, for those seeking steady returns while willing to accept some risk, participating insurance is an ideal choice.

As participating insurance becomes a market trend, AIX’s insurance division has taken the lead. By analyzing the entire market and collaborating with multiple insurance companies, it has selected several highly competitive products. The subscription system has been launched to meet the diverse needs of clients, offering comprehensive lifetime protection.