Product Structure Factors Behind Changes in Life Insurance Surrender Rates

Association between Life Insurance Lapse Rate Fluctuations and Product Structure

Recent industry data shows a slight fluctuation in the surrender rates of long-term savings products from certain insurers. This trend is often closely tied to the product mix sold previously, particularly as high cash-value products face greater redemption pressure during periods of declining interest rates.

From a product design perspective, if past offerings relied heavily on short-term premiums and quick payback models, customer retention may weaken when market return expectations shift. In contrast, products with strong protection features and longer terms typically demonstrate more stable renewal rates.

• High-premium universal life insurance is highly sensitive to interest rates.
• The "long-term insurance sold as short-term" model often triggers concentrated policy surrenders.
• Pure protection products tend to have stronger user stickiness.

When optimizing the liability side, institutions must balance scale growth with quality control. For specific products, cash values and surrender rules are governed by the insurance contract terms. This document does not constitute any advice on purchasing or redeeming policies.