Countermeasures for Commercial Pension Insurance under Negative Interest Rates

In the past 20 years, the global interest rate benchmark has continuously declined. The low-interest-rate environment has had a significant impact on the asset-liability management of the insurance industry. A declining interest rate environment lowers investment returns for insurance companies. In cases of severe yield mismatch, insurance companies are also highly vulnerable to risks associated with interest rate spreads. This article points out the actual negative interest rate environment currently faced by China's pension insurance industry, analyzes the causes of interest rate spread risk, and finally puts forward feasible policy recommendations from the perspectives of companies and regulation.