The insurance product policy framework has expanded from specialized protection supply to clauses, rates, channel fees, and operational data, according to a research report released by Citic Securities Company Limited (ASX: 600030). The comprehensive governance of non-auto insurance is driving existing products to be re-filed and constraining irregular fees, while technology insurance and low-altitude insurance are expanding protection scenarios; model clauses for medical insurance and participating insurance are refining industry standards, with predetermined interest rates strictly constrained and benefit illustration rules standardizing sales presentations. Product-side policies are reshaping the market landscape, with strength-based competition fully replacing fee-based competition. On allocation strategy, the dividend mainline provides a high-certainty foundation, with attention to property insurance companies; the leading-player mainline provides flexibility from landscape optimization, with attention to large insurance groups with strong capital strength, service capabilities, and asset-liability matching. The key views of Citic Securities Company Limited are as follows: since 2026, insurance product-side policies have been intensively implemented. 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 model clauses for ordinary life insurance and model clauses for medical insurance and participating insurance. Health insurance measures in Beijing and Guangdong propose arrangements for connecting medical insurance payments with medical services, while 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 model clauses for ordinary life insurance and model clauses for medical insurance and participating insurance, with industry texts on contract responsibilities, renewals, and dividend disclosure becoming more standardized; the non-auto insurance plan promotes standardized clauses for major insurance types and re-filing of existing products. Model clauses for personal insurance are still at the opinion-solicitation stage, and subsequent product adjustments are expected to require formal texts.
Core Judgment Two: Rule Pre-positioning and Data Retrospection Jointly Strengthen "Reporting-Execution Consistency"
The draft model clauses and benchmark pure risk loss ratios provide references for product development and pricing, while the non-auto insurance plan and bancassurance fee management constrain filing rates and channel expenditures; the non-auto insurance plan intends to use industry databases and rate retrospection to verify rate execution, and the "insurance-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 Drive 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 irregular fees is narrowing; standard 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 personal insurance, dividend fulfillment and health services affect customer choices.
Industry Mainline One: Value Property Insurance Pricing Capabilities
The re-filing of existing non-auto insurance products and the proposed cost allocation guidelines make property insurance companies more reliant on rate execution, cost control, and risk pricing. Attention should be paid to new tracks with institutional endorsement such as technology insurance cataloging, low-altitude insurance, and professional liability insurance. Pricing capability is expected to become the key to competition in the next stage.
Industry Mainline Two: Value Comprehensive Operations and Service Capabilities
Model clauses for personal insurance and health insurance measures in Beijing and Guangdong raise the focus on 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 Are Reshaping the Market Landscape, with Strength-Based Competition Fully Replacing Fee-Based Competition
Regulatory policies are pushing liability costs into a downward channel and returning competitive order to comprehensive strength, with the predictability of industry profitability and dividend capacity strengthening simultaneously. 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-based competition are expected to concentrate among leading companies. On allocation, the dividend mainline provides a high-certainty foundation, with attention to property insurance companies; the leading-player mainline provides flexibility from landscape optimization, and it is recommended to focus on large insurance groups with strong capital strength, service capabilities, and asset-liability matching.
Risk Factors: Downward Long-End Interest Rates; Equity Market Volatility; Personal Insurance Product and Channel Adjustments Falling Short of Expectations; Non-Auto Insurance Fee Governance Results Falling Short of Expectations; Professional Insurance Claims Exceeding Pricing Assumptions