According to the latest data released in May, the national consumer price index (CPI) rose by 4.4% year-on-year, which was 0. 1% lower than that in April, and the effect of the national macro-control policy appeared. Earlier, Li Yang, a member of the Monetary Policy Committee of the People's Bank of China, pointed out that if the consumer price index climbs above 5%, it may be necessary to raise interest rates to curb investment. Recently, the voice and expectation of raising interest rates are quite strong, and the capital market has made a major response to the expectation of raising interest rates. The stock index hit a new low and the bond market was gloomy.

For the insurance industry, raising interest rates has both positive and negative effects. The increase in interest is mainly reflected in the operation of life insurance companies, and the impact on property insurance companies is relatively small. The benefits of raising interest rates to life insurance companies are: first, it can reverse some spread losses, but it must be noted that raising interest rates in the current environment has little remedial effect on spread losses, because interest rates cannot rise to the high predetermined interest rate that produces the main spread losses, that is, the high level of about 8%; Second, it can improve the investment income of life insurance companies. Raising interest rates can increase the income of insurance funds in terms of bank agreement deposit rates and floating rate bills, while the income of investment funds and fixed rate bonds may decrease. Due to the recent large proportion of insurance funds in bank deposits, and the securities market has made a great response to the expectation of raising interest rates, the comprehensive impact of raising interest rates on investment income should be positive.

Raising interest rates also has negative effects: first, high interest rates will reduce the attractiveness of low-interest life insurance products. In the current fierce market competition, customers will ask life insurance companies to provide higher-yield products, and new income space for life insurance companies will be quickly lost. If life insurance companies can't put new products that adapt to this change on the market quickly, they may also face the situation of stagnant or negative premium growth; Second, some fixed-rate insurance products, such as most enterprise annuity products, will face the risk of surrender.

Generally speaking, the negative impact of raising interest rates is greater than its positive impact. Li Kemu, vice chairman of the China Insurance Regulatory Commission, once said that even if interest rates are raised, the China Insurance Regulatory Commission can make some policy adjustments to ensure the normal development of the insurance industry. As an important part of the insurance market, it is the best policy for insurance companies to actively respond, plan ahead, and do a good job in new product development, cash flow reserve and budget.