Edit | Yu Bin
Produced by | Chaoqi Network "Yu see column"
With the gradual increase in the degree of population aging, the problem of old-age care has become an increasingly serious social problem. However, at present, the reserve gap of China's pension wealth is still large compared with That of European and American countries. It is understood that at present, China's pension is still dominated by the pension of the first pillar, and the participation rate of the second pillar enterprise annuity and the third pillar of personal commercial insurance is less than 20%.
In recent years, the contradiction between supply and demand of basic old-age care in the first pillar country is more prominent, and it is urgent to supplement the second and third pillars. To this end, the state also vigorously supports the development of commercial pensions, hoping to build a sound old-age security system through the third pillar of endowment insurance. Following the launch of tax-deferred pension insurance in 2018, exclusive commercial pension insurance will be piloted from June 2021.
Major insurance companies have accelerated the layout of this huge market, of which Ping An of China is the most active, Ping An launched a blockbuster imperial wealth insurance product in half a year, and with the help of the promotion of the Internet market, it has been in the limelight for a while and won a lot of attention from the market. However, through the understanding of its products, it is found that this hard-core product that Ping An prides itself on seems to be exaggerated.
Highlight the characteristics of fast return, contrary to the original intention of the elderly
It is understood that Ping An Royal Wealth this product belongs to the fast return type annuity insurance, payment for 3 years or 5 years, can start from the 5th year to receive money, the time to receive money is relatively fast, after the expiration of 8 years of the main insurance contract terminated. However, as a supplement to endowment insurance, commercial annuity insurance is for the purpose of old-age security, from the perspective of the commercial endowment insurance pilot in June this year, the exclusive commercial endowment insurance should be based on personal pension insurance products aged 60 and above, and the collection period should not be shorter than 10 years.
Earlier, the Banking and Insurance Regulatory Commission also said that the pilot of exclusive commercial endowment insurance is not only conducive to enriching the supply of third-pillar pension insurance products, consolidating the multi-level and multi-pillar pension insurance system, but also conducive to cultivating the mature concept of "long-term investment long-term return, value investment to create value, and reasonable return on steady investment". It shows that the original intention of the state for commercial pension products is to accumulate long-term accumulation, and to accumulate more pensions for the future through long-term investment concepts, rather than doing some fast-return products to attract customers, which is obviously contrary to the original intention of pension insurance.
In fact, insurance companies make such a decision, because the short-term launch of fast-return products can open the market faster and prepare for occupying the huge market of commercial pension insurance in the future. According to the seventh national census data released by the National Bureau of Statistics, China's population aged 65 and over will reach 191 million in 2020, accounting for 13.5%, and the degree of aging of Chinese population is higher than the world average.
While the degree of population aging is higher than the world average, China's commercial endowment insurance has just started. It is understood that the current China's social security is still the main source of pension income, the second pillar of enterprise annuity and the third pillar of personal commercial insurance participation rate of less than 20%, compared with foreign countries, the United States, the United Kingdom, Canada and other countries with pension insurance function of life insurance premium income accounted for 50% of the total life insurance premium income, of which pension annuity insurance accounted for more than 35%.
It can also be seen from this that although China's commercial endowment insurance is in its infancy, the market space is huge. According to professional predictions, in the future, if China's pension insurance market share can reach 35%, then the increase in pension insurance premium income can reach 1.5 trillion yuan; if the pension insurance market share can reach 50%, the pension insurance premium income can increase by up to 2.5 trillion yuan.
With such a huge market space, it is no wonder that Ping An will first open the market through fast-return products such as Royal Wealth to attract market traffic. However, the longer the protection period of pension annuity insurance, the higher the requirements for the operating level of insurance companies. If Ping An was positioned as a fast-return pension insurance from the beginning, how would it respond to the challenges of the market in the future? Will this affect their long-term management experience?
In fact, it is not only the royal wealth that has such defects, most of the annuity insurance on the market only pays attention to the design of the accumulation period, the service innovation for the collection period is insufficient, the homogenization of the product is serious, the scope of protection, the liability rate are similar, and the product form is relatively single.
Are yields really as high as advertised?
Through Ping An's official website, it can be learned that the Royal Wealth Series has two combinations, the Universal Edition and the Pension Edition, of which the universal version is called "Ping An Royal Wealth Insurance Product Plan", which is composed of Ping An Royal Wealth Annuity Insurance, Ping An Jucaibao, and Whole Life Insurance (Universal).
The full name of the pension version is "Ping An Royal Wealth Pension Insurance Product Plan", which is composed of Ping An Royal Wealth Pension Insurance, Ping An Ju Cai Bao, Whole Life Insurance (Universal Type), Ping An Ju Cai Bao, Pension Annuity Insurance (Universal Type).
According to the promotion of Imperial Wealth, the reason for such a combination is to obtain higher returns. By estimating the yield of the Royal Wealth Universal Edition, it can be concluded that the internal rate of return (IRR) of this version is 1.74% (the IRR of the pension version is 1.94%, slightly higher) is not high, and it can even be said that it is only a little higher than the one-year fixed deposit, but compared with the monetary fund, there is still a gap. Referring to the latest Treasury reverse repo rate, this yield basically outperformed by about 0.8%.
Therefore, when Ping An's salesmen promote the product of Royal Wealth, they will advise customers to attach universal accounts, otherwise the yield may be far from the bank fixed deposit. But when these salesmen publicize, they will deliberately publicize the company's jucaibao settlement interest rate of about 5% in the past year, but this can only be used as a reference standard, in fact, the universal insurance account has a high-end and low three-stop expected return, the income of resistance is only 1.75%, and the high-end words are to be done well, and it is not necessarily a benefit that will be realized.
After attaching the universal account, the money returned by the main insurance will not be directly returned to the customer's hands, but will be deposited into the universal account, and through the operation of the universal account of this treasure, compound interest and value-added in it.
Therefore, the income of the royal wealth of this annuity pension insurance is mainly combined by the main insurance income and universal insurance income, through the calculation can be known that the income of the main insurance is only 1.74%, or even not as high as the monetary fund, and the universal account can only guarantee the minimum return of 1.75%, as for the publicity in recent years, the company's income of 5%, that is the past performance, and does not represent the future. This is like Zhang Kun's fund rose sharply last year, but this year it is Waterloo, although it has some value in referring to past performance, but it is absurd to use this as a benchmark.
No matter how to advertise, the first basic attribute of this type of commercial annuity insurance is annuity insurance, similar to fixed income products that lock in the principal for a long time, followed by the hope of obtaining a better stable income in a long period of time to resist currency depreciation. This is the meaning of pension annuity, as for high returns do not exist, both high returns and riskless investment and financial management, may not exist at all.
Therefore, the yield of Royal Wealth is not as high as it advertises, and taking past performance as a future reference obviously has some misleading implications for consumers.
The product covers many services, but the attraction is not enough
Royal wealth this product covers a lot of services, it can be said that the thinking is very thorough, almost all the problems that can be solved are put in, but the composition of the product is somewhat unusual, although there are many services, but can not highlight the key points, but a bit of a snake.
First of all, the royal wealth is lower in terms of income, which is in line with the characteristics of the pension annuity, and cannot be blamed. But why do you have to come up with a combination of main insurance and universal insurance? The difference between the main insurance and the universal insurance is that it is a total disability and death insurance premium, in addition to the main insurance has no advantage over the universal insurance, if the customer is not in a hurry to use the money, then simply put this money into the universal insurance, you can also get higher returns.
Second, this policy can finance the loan. For example, if there is 100,000 yuan in the account value, you can lend up to 80%, that is, 80,000. Pension as a pension security, the main feature is long-term low-risk investment, the accumulation of income for the future pension needs, but the introduction of such a function that can be used to finance loans, a look is not in line with the style of pension annuity. Once these elderly people with poor risk resistance listen to the instigation and really use the insurance policy to finance, then not only the role of the elderly cannot be achieved, but also may cause greater financial risks to these elderly people.
Third, there is the double insurer system. The so-called double insurer system is that parents can set themselves as the first insured and children as the second insured. In this way, the account can be compounded and multiplied, lasting two generations for life, not only with the parents' life, but also with the child's life. The basis for the existence of this dual-insurer system is that most people think that the future interest rate level will be lower than the 1.75% minimum guarantee of universal insurance, and to be honest, this is very likely. But you know, known as the world's smallest increase in A shares, the average yield of the Shanghai 50 in the past decade is 9.6%, the CSI 500 is 7.4%, if there is really a long period of idle money, why must we pursue a 1.75% return?
Finally, the yield of the Royal Wealth product is not high, and the protection it provides is not comprehensive, if in order to pursue a higher income, you can put the money directly into the universal insurance, or consider other insurance products on the market; if it is to provide total disability and death protection, then use these extra interest is enough to buy a product dedicated to personal safety.
All in all, although royal wealth provides many services, it is not highly practical, some functions are like chicken ribs, and some may have negative effects.
epilogue
With the acceleration of the aging of the population, the problem of old-age care has become a problem that more and more people must face as they get older. Under the influence of multiple factors such as the decline in the replacement rate of the elderly and the promotion of policies, the market space for commercial pension insurance in China is huge in the future.
As one of the largest insurance companies in China, Ping An has recently accelerated the pace of laying out commercial pensions. As the opening product of Ping An in 2022, Royal Wealth has become a very popular annuity product in recent times under its publicity.
However, royal wealth may not be as perfect as advertised, and it still faces low yields, products and services are like chicken ribs, and its practical significance is questionable. Moreover, driven by utilitarianism, attracting customers through the characteristics of fast return will lose the opportunity to accumulate experience in managing pension insurance, so Ping An bet on royal wealth seems to be a wishful thinking, but it is actually full of variables.