What does the insurance spread mean?

The so-called "spread loss" refers to the loss caused by the actual interest rate being lower than the assumed interest rate.

Insurance products will be priced according to a predetermined rate of return. When the actual rate of return in the future is lower than this predetermined rate of return, it will cause losses to insurance companies, which is called "spread loss".

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.