Industry's First Standard Clause for Participating Insurance

Release of Dividend-Linked Insurance Model Terms Promotes Industry Standardization

Recently, the Insurance Association of China released the first model clause for participating life insurance products. This initiative aims to standardize industry practices, clarify dividend distribution mechanisms and disclosure requirements, and help reduce sales misrepresentation and claims disputes arising from clause variations.

The model clause primarily regulates the following aspects:

• Clearly define the scope and calculation logic of distributable surplus.
• Refine the assumptions and risk disclosure obligations for dividend demonstration.
• Strengthen policyholders' right to information regarding dividend distributions.

Implementing this standard will encourage insurance companies to optimize product design and enhance transparency. Note that actual returns for specific products are influenced by multiple factors; final benefits remain subject to the terms of the insurance contract.