"Second-generation compensation" transitional policy ends, most insurance companies maintain sufficient solvency ratios.

Starting from 2026, the transitional policy period for the "Pay-2 Generation" Phase II rules will end. How is the solvency of insurance companies? Securities Times reporters found that by the end of the first quarter, the solvency of most life insurance companies remained adequate, with only a few companies falling below the standard. However, the solvency adequacy ratio of many insurance companies has significantly decreased compared to the end of 2025. In the first quarter, the solvency of insurance companies declined, partly due to the end of the transitional policy period, and also due to the continued downward movement of the 750-day moving average government bond yield curve used as the benchmark for reserve fund discounting rate. Industry experts predict that the 750-day curve will basically stabilize by the end of this year, and its negative impact will gradually weaken. Several insurance companies have stated that they will promote bond issuance, capital increase, and counter-cyclical capital management measures to maintain solvency above normal levels. Additionally, it is expected in the industry that after the revision of solvency supervision rules, the tense situation of industry solvency will be somewhat relieved.