Chinese Regulator Tells Life Insurers to Slash Estimated Returns for Investors

China’s insurance regulator has asked life insurers to lower the estimated returns for newly launched products, in a move to reduce their cost pressures, industry insiders told Caixin.

The China Banking and Insurance Regulatory Commission (CBIRC) recently told chief actuaries of life insurance companies to cap the assumed rates of returns for investors at 3.5% for new traditional life insurance products, 2.5% for participating life insurance policies and 2% for universal life insurance products, the sources said.