UBS released a research report stating that the National Financial Regulatory Administration issued guidance on "Promoting High-Quality Development of Health Insurance," which is positive and meaningful. Insurance companies with excellent regulatory ratings are permitted to launch participating dividend-type long-term health insurance products. Implementation details have not been finalized, but a transitional solution combining dividend savings policies with critical illness riders is expected. Despite introducing dividend features, regulators will continue to focus on the fundamental purpose of protection.

The bank believes that mainland China's allowance of dividend-type critical illness insurance will have limited competitive impact on Hong Kong's mainland visitor insurance sales, as Hong Kong's dividend-type critical illness insurance market is developing steadily. First, Hong Kong's dividend products typically offer higher demonstration rates of 6%-6.5%, compared to 2.9%-3.3% on the mainland. Second, Hong Kong insurance products provide broader global investment options, meeting mainland visitors' needs for asset diversification.

UBS identifies key success factors for dividend health insurance as strong regulatory ratings, investment and distribution capabilities, focus on protection products, and medical ecosystem development. Based on these factors, the bank favors AIA China as the primary beneficiary. Among domestically listed insurance companies, PING AN (02318) is relatively focused on protection products. PING AN also has a comprehensive online and offline medical ecosystem that could create synergies with health products such as critical illness insurance.