With deposit rates continuing to decline—recently, some banks further reduced three-year and five-year fixed deposit rates from 2.1% and 2.15% to 1.3% and 1.35%, respectively—traditional savings can no longer effectively combat inflation or secure retirement funds. In this low-interest environment, investors seeking stable returns are increasingly turning to insurance products, mirroring trends seen in Japan, the U.S., and Germany during similar periods.

Participating insurance, which combines fixed returns with potential floating dividends, is gaining traction. Unlike traditional insurance with contractually fixed payouts, participating policies offer a "defensive and offensive" approach: a guaranteed base return (currently averaging 1.75%) plus variable dividends tied to the insurer’s performance. Insurers must distribute at least 70% of surplus earnings to policyholders annually, per regulatory requirements. This structure can outperform fixed-rate products, especially as the latter’s preset rates have dropped to 2%.

China’s insurance market is embracing this shift. In the first three quarters of this year, 275 of 607 newly launched life insurance products (excluding short-term policies) were participating types. While not new—China’s first participating policy debuted in 2000—their resurgence addresses today’s demand for yield resilience.

Among insurers, Ping An Insurance (Group) Company of China Ltd. stands out. Backed by its 37-year parent company, Ping An, it boasts robust risk management and investment prowess. Its Q3 2025 report highlights a 6.41 trillion yuan insurance investment portfolio, with 10-year average net and comprehensive investment yields of 5.0% and 5.1%. The firm’s participating products, like "Ping An Yu Xiang Jin Yue Annuity" and "Ping An Yi Xiang Shi Jia Whole Life," leverage a unique "three-portfolio strategy" to optimize dividends. Post-September 2024, all 12 new participating policies exceeded 100% dividend realization rates.

Beyond financial returns, Ping An enriches policies with health, education, and lifestyle benefits, catering to holistic client needs. In an era of uncertainty, participating insurance offers families a balanced tool—combining security and growth potential—to navigate economic cycles wisely.