The profit model of "asset management" is to lie down and eat spreads. The original profit source of life insurance companies has three elements-fee difference, death difference and spread, which is the traditional three-difference profit model. But now, looking at the whole life insurance industry, the profits of life insurance companies have generally relied on spreads.
In the opinion of most insurance experts, this profit model that relies solely on spreads does not conform to the law of life insurance management. In 20 14 years, most small and medium-sized insurance companies were able to make profits, the performance of capital market greatly exceeded expectations, and the scale of non-standard assets broke out.
The profit model based on spreads is a typical' relying on the sky to eat', which is unstable and unsustainable.
The profit model relying on spreads will accelerate the consumption of company capital. Life insurance companies that rely on spreads often adopt the product model of selling products with minimum income guarantee or high expected income. Due to the existence of the minimum guarantee, the solvency of life insurance companies is required to be higher and the capital occupation is larger.
Once there is an extreme investment environment or the capital market continues to slump, their spread income may fluctuate greatly, and even spread losses may occur.
At present, due to the limited choice of assets available for investment in the domestic capital market, the market transparency needs to be improved, so it cannot be transformed into a profit model driven entirely by management fees. In the short and medium term, spread income may still dominate the profits of life insurance companies, but the contribution of management fee model to profits needs to be gradually improved.
With the rise of new insurance products such as investment-linked insurance and variable annuity, the profit model of some international insurance companies has gradually changed to management fees. These insurance products generally have no guaranteed income, and the investment risk is entirely borne by customers. Insurance companies mainly earn management fees from them, so the requirements for insurance companies' capital and solvency are low.
The longer the term of insurance products, the more investment income brought by compound interest effect, and the lower the requirements of customers for investment return rate; The higher the security component of insurance products, the greater the contribution of dead profits to the sources of profits.
Phoenix Net-The profit model relies heavily on the "short spread" life insurance company's profit dilemma to be solved.