The central bank raised interest rates by half a yard (0.125 percentage points) in June, and the dividend interest rate of life insurance policies is expected to rise by 1.25% after reflecting in July, a 76-month high since April 2016, but the biggest interest rate affecting the operation of the life insurance industry is the lowest rate of return on real estate investment, which has increased from 2.095% at the end of last year to 2.47%, and the ability of life insurance companies to buy real estate will be 15% less.
Life insurers said that in recent years, real estate prices have risen, and it is already difficult to meet the minimum yield requirements, and the central bank has raised interest rates by 1.5 yards this year, making it more difficult for the life insurance industry to invest in real estate. The industry said that under the trend of rising interest rates, it hopes to compete with the Financial Supervisory Commission to lower the minimum yield threshold, that is, the current 2-year fixed deposit mobile interest rate of Chunghwa Post will be increased by 5 yards, and strive to reduce the increase range.
On July 13, the bid to be closed Sanshang Meibang Life Insurance sold Neihu Elite Computer Factory Office Building, will become a recent indicator case, because the 10-year lease leased back by the sale of elite computer will expire next year, if the rent is not raised, according to the current yield of 2.47%, the highest bid price of life insurance is about 8 billion yuan, which is about 15% different from the highest bid of 9.5 billion yuan last year, and is also similar to the reserve price of 7.5 billion yuan.
If a life insurance company wants to use the building as its own use, the bid is exempt from the 2.47% limit and can be raised, but it cannot be rented out and must be mostly used for its own use.
Interest rates affect the operation of the life insurance industry, the first is that the bond interest rate first reflects the expectation of interest rate increases, and the old bonds in the hands of life insurance have suffered a large number of evaluation losses, but the interest rate of new money invested in overseas bonds has increased from 3.5%~4% last year to 4.5%~5% recently, and the recurring yield is expected to be higher than in 2021.
Secondly, the interest rate declared by the policy is expected to rise, and the buying of profit life insurance policies will have the opportunity to increase, which will solve the dilemma of double-digit decline in new contract premiums in the first five months.
The policy dividend interest rate is calculated based on the 2-year fixed interest rate of Bank of Taiwan, First Bank and Heku Bank, which will further rise to about 1.25% in July, a new high in 76 months, but it has not yet returned to the level of 2.26% before the financial tsunami in 2008.
However, the policy dividend interest rate represents the market interest rate, which has risen to the level of at least more than six years ago, and the interest income of fixed depositors has increased.
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