How does the Internet Help and transform insurance?

(The author of this article is SYWG macro source analyst Song Corsen, Feng Da, Yi Huan, Yu Qi.) Excerpt from its report "the next 10 times times the Gale")

The development of Internet insurance coincides with its time. Internet insurance includes both the Internet of sales channels and the design of Internet products. Whether the channel or product design, Internet insurance has been the basis for development.

1, internet finance after nearly two years of development, financial networking, and the audience is 80, a, this part of the people gradually become the main force of the wealth of the community, their tolerance for risk is higher, the degree of acceptance of network finance is higher;

2, the Insurance demand initiative, the population aging, the urbanization unceasing advancement, along with the insurance product own superiority, the insurance product gradually from "the passive sale" toward "the active demand";

3, personal agent-oriented original sales model has limitations, the channel reform is urgent;

4, the policy direction gradually clear, the Internet insurance is on the verge.

How will the Internet reshape the market and model of insurance? Below is a review of the different situations.

Several forms

1, the transformation of business form to derive new insurance requirements: public Ann Online

Finance is a service to the real economy, the Internet in the transformation of the financial industry is also in the transformation of the traditional real economy, the changes in the physical economy has spawned new financial needs. The internet has gradually deepened the generation of new internet assets and corresponding insurance requirements, such as virtual property. Virtual property insurance refers to the property insurance that protects the virtual property in the network. The types of protection are divided into loss insurance and liability insurance. The subject matter of loss insurance refers to the equipment, game currency and game account in the game, and the insurance company is responsible for the compensation when the items are lost. In addition, as in real life, there will be the threat of force majeure, as well as property insurance, the virtual insurance also has a system accident derived from the type of liability insurance.

February 2013, Ali, Tencent, Ping An investment set up China's first Internet insurance Company "public Ann Online" officially received the approval of China Insurance Regulatory Commission, to allow its Internet-related property insurance business, the matter marks the Chinese insurance industry and the integration of the Internet to achieve a major breakthrough. The new company will completely through the Internet sales and claims services, products include virtual currency The insurance, Network payment security liability insurance. Alibaba is China's largest e-commerce company, with a large number of enterprise users, Tencent has a wide range of personal users and media resources, while China Ping An has insurance, securities and banks three major licences, the cooperation of the three undoubtedly left people with unlimited reverie.

Compared with the general insurance of the Internet insurance Companies, "public security" can be adapted to local conditions with the internet thinking of the "Big Data" design services to the Internet economy Insurance products, can submit claims online claim, provide proof materials. Realized from the insurance design-insurance sales-insurance claims integration, interconnection of Internet insurance Services.

Public security services and products currently available

Yin Hai, the CEO of Ann Online, believes that "globally, companies such as the Internet-focused insurance business are not." We are seeing a huge gap in the Chinese market now: The Internet industry is highly developed, but at the same time the social economic base of credit, payment and logistics is not mature. "In addition to the above mentioned virtual insurance, public security online in the electronic business products such as the Internet and the integration of the real economy of the field also has innovation." At the end of 2013, public Security issued a "Chung Lok Bao" margin plan, is the first domestic security insurance, Taobao launched the first network margin insurance, designed to join Taobao to protect the agreement of the sellers performance ability to provide insurance, to help sellers lighten, to ensure that buyers good shopping security.

2, Channels: Networking, scene

(1) Network

Insurance network is through the Internet, the use of digital information and network media interaction to communicate with customers to provide insurance services in all aspects, so that insurance information consulting, security plan design, insuring, underwriting, payment, underwriting, policy information inquiries, claims and payment insurance, such as the entire process of networking, A new marketing channel for assisting marketing target.

Channel Network is the centralized and realizable form of Internet insurance at the present stage. These rich forms of products reflect the current vigorous development of internet insurance, the traditional insurance channels have a strong impact, whether the traditional personal insurance or insurance, can be networked through the Internet sales.

In comparison with foreign sales, China's insurance network sales development There is still a big gap. In terms of personal insurance, the proportion of American online purchases reached 8%-11% in China at about 2012 years. And in the network sales development more enthusiastic property sales area, the development gap is even greater. In the case of automobile insurance sales, China's auto car sales ratio is only about 1%, while the United States has reached 30%-50%, the United Kingdom reached about 45%, Asian neighbors Japan and South Korea reached 41% and 20%, is China's more than dozens of times times. In this deduction, the future of China's Internet insurance sales space is huge.

Internet insurance sales in various countries 2012 UK auto Insurance distribution channel

The characteristics of the insurance products which can realize the channel Internet are summed up as simple terms, low premiums and convenient trading.

First, the terms of simple, the simpler the product, the easier the standardization, the customer needs to get less consultation, the Internet mode is the more appropriate, which is the most typical product is insurance.

Second, the premium is low, the lower the premium the customer's sensitivity is relatively lower, the easier it is to reach a deal, which is why short-term financial risk easy to trade and long-term life insurance such a high value of the product transactions more difficult to develop slower.

Third, the convenience of the transaction, including the convenience of the scene and the convenience of payment, here mainly refers to the payment aspect, in the third party pays the booming development today the transaction becomes more convenient, the insurance network is further advanced.

From the product structure, car insurance, financial risk and accident insurance are currently sold through the Internet is more hot. The horizontal view automobile insurance occupies the entire Internet insurance product sale more than half market share, the longitudinal view network penetration rate also has reached about 1%, the network degree is high. According to the analysis above, in the marketing channel network, the insurance product simplification, low premiums and easy to facilitate the sale of insurance products, car insurance is more obvious is lower premiums easier to achieve networked sales.

The ratio of Internet premium (billion) and total premium of different kinds of insurance in China in 2013

The specific network sales model aspect, currently mainly includes four kinds.

First, the insurance company built the internet marketing platform or electric sales platform, the main domestic insurance companies rely on their own official website set up its own Internet sales platform, such as China Life, ping An insurance and other official website is also a product sales platform.

The second is the Internet insurance intermediary platform. This is a professional insurance sales site, such as the Hui-optional network, the Big Child Network, Dispatch's trust, the new one-stop insurance network and so on.

The third is a concurrent industry agency, refers to the agency engaged in their own business, in accordance with the Commission of the insurer, to the insurer to collect insurance agent fees, within the scope of authorized by the insurer Agent insurance business units. Finally, the third party E-commerce sales model, Third-party E-commerce platform giants have a large number of users, and users are more willing to accept the Internet financial products, with high conversion rate, at present, Taobao, Jingdong, Suning, Tencent, etc. have opened up the Internet Insurance Sales module.

China Insurance Industry Network sales Model

(2) scene

It will be the trend of Internet insurance to make the insurance scene of connecting subject transaction and insurance transaction. The scenario of Internet insurance can be changed in two directions, one is the new marketing scene, the other is the new internet shopping to produce new online insurance products.

The first scenario can be summed up as an insurance marketing scenario. Insurance has always been a complex obscure financial products, because of its changeable terms, it is difficult to do more in marketing, ordinary consumers have been ignorant of the state.

Moreover, in many cases consumers do not understand their own insurance needs, with insurance products there is a certain distance. The internet will be the intermediary of the transaction to the extreme, the main transaction in meeting the needs of consumers will stimulate the consumer demand for derivative transactions, narrowing the distance between consumers and derivative transactions, relying on the Internet subject to trade insurance transactions as the atmosphere.

For example, in Ctrip and other travel sites to sell travel accident insurance. Ctrip is a professional travel e-commerce site, where you can provide travel including air tickets booking, hotel reservations and a series of services. In the traditional travel trading scene, the customer's demand for accidental insurance is not rigid, but in the internet scene in the customer ticket, hotel and other reservations, will receive travel accident insurance sales push, stimulate this part of the demand. At the same time, in the purchase interface Ctrip provides some elements related to travel, including numbers, destinations, insurance companies and other options, can provide consumers with more, evaluation options, insurance products sales more transparent.

The second scenario is characterized by the scenario of derivative requirements. Because of the existence of interconnection, there will be a lot of unique interaction, social, trading scene, this scene is different from the offline entity scene also needs the relevant insurance product design. One of the most typical product design, is based on Taobao transaction freight insurance. Online shopping refund insurance is based on e-commerce transactions generated by the new insurance products, customers Taobao transaction payment will produce the following image interface, Taobao provides a freight insurance option. Its finance generally in 0.5-1.0 yuan, if the return can get 10 yuan of compensation, just offset the goods returned customers need to pay the postage. Every double 11 is the sales peak, 2013 years double 11, in just one day, freight insurance sales reached 120 million, creating the insurance industry the same insurance type of daily sales of the world record.

3, Products: simplification, data

(1) Simplification

As a variety of financial products, insurance products have natural complex properties. In the contract of insurance, it is necessary to set forth the rights and obligations of the insurer and the insured in the insurance contract. Generally speaking, the insurance contract is a "fixed contract", that is, the insurance company to make the contract content, the applicant can only choose to accept or not accept. Because of the complexity of insurance products, the traditional insurance company sales must introduce the content of the insurance contract with the insured person face-to-face, and dissolve the question and misunderstanding of the insured, but in the course of operation, the insurance company employees use the information superiority to mislead the consumers to improve the short-term insurance performance.

Product simplification to adapt to internet sales trends. In the Internet sales model, omitted the middle of sales staff sales, face-to-face interpretation of product links, the nature of the Internet requires Internet insurance products must be designed to simplify. Insurance companies need to use a variety of dimensions of pricing methods to the insurance product fragmentation design, to achieve a simplistic pricing. For example, in the purchase of Internet accident insurance, we need to refine the standard design and pricing of insurance products for one person's trip a day.

Property insurance, financial risk due to simple characteristics more suitable for internet sales. Compared with the long-term personal insurance, property insurance is easier to achieve a simplified, standardized design, including automobile insurance. At present, the auto insurance sales of PICC has exceeded 75%, auto insurance because the terms of simpler standardization, suitable for online sales, the current auto insurance has accounted for online insurance sales premium income of more than 50%. In addition, now the Internet insurance online sales flow more smoothly, auto insurance network sales will have a broader development.

(2) data

In product design, the Internet's contribution to insurance is to help insurance products risk pricing. Large-scale Internet data bring rich information data of insured object, combine the nature of multidimensional data description, then analyze the risk for product pricing.

Two examples of Internet-assisted data-

√ Auto insurance: OBD and UBI products pry Internet insurance

The development of auto insurance will usually experience the three process of insurance pricing, model pricing and pricing. China's current car insurance is still in the stage of insurance pricing, and in the future may be directly across to the use of pricing: according to the specific driving behavior of each driver and driving conditions to price insurance. As the development of car networking provides accurate, omni-directional traffic large data information, in order to directly across to "use pricing" laid the foundation. This also helps to solve the moral hazard behavior in the insurance market to some extent, and helps to motivate and improve people's driving behavior.

UBI (user Based Ping, server-based insurance) and OBD (on-board diagnostic vehicle diagnostic system) are two of the most important pillars of vehicle networking. The rise and popularity of car networking is the basis of "use pricing" of auto insurance.

The UBI model mainly includes three kinds: one is dependent on the mileage of the car, the second is the number of miles recorded by the GPS or the driving time of the vehicle, and the third is based on the collection of other data from the vehicle: speed, driving time, driving behavior, driving distance, duration and so on; OBD mainly for the vehicle's own driving conditions, the car on the hardware, software, etc. to monitor and record. Based on the above two points can be a better grasp of the risks in the driving, in order to achieve differentiated "use pricing" to provide a solid foundation.

√ Life insurance: wearable equipment and electronic medical records to help the Internet personal insurance

Life insurance is insured by the person's longevity and body as the subject of insurance. When the insured person's body is damaged, or reaches a certain age, retirement and so on, the insurer pays insurance premiums or annuity to the insured. The life insurance has the serious information asymmetry: Generally speaking individual to oneself body condition understanding degree is much higher than the insurance company, therefore in the life insurance often occurs conceals the information, the fraud and so on behavior. This will lead to the cost of insurance companies to pull high, and ultimately spread to each insured person, resulting in overall unfairness.

Wear equipment and the development of electronic medical records to accumulate large data will be for the subdivision of policyholders, accurate insurance pricing, the development of new types of life insurance products provide an important role, so that no corner of life insurance.

The development of wearable equipment is helpful to all-round and all-weather monitoring of human physiological index and behavior pattern, and the large data accumulated in the long term has a strong guiding role in judging the insured's physical condition and the probability of possible accidents, which provides a solid data base for the accurate pricing of life insurance. At present, most hospitals have computerized medical records, but the integration of medical records among hospitals is still sluggish, which leads to the jumbled and ineffective information. The electronic medical record has an important guiding role for the insurance company to comprehensively evaluate the insured's personal health status.

Future business model

In the future internet-based model, Internet insurance will return to the essence of mutual insurance.

Friendsurance The concept of online point-to-point into insurance, combining social networking with insurance companies. Friendsurance uses the crowdsourcing model to allow customers to cluster online and provide primary insurance to each other within the group, and customers can create their own insurance networks and reduce their annual insurance costs by up to 50%. Company clients invite friends based on their social networks to ask their friends if they are willing to underwrite their own specific civil behavior. For example: A just bought a new car, a can ask friend B whether willing to underwriting, if B is willing to underwriting, a must in accordance with the provisions of the insurance company to pay a certain insurance fee to B. The scope of insurance is not limited to motor vehicle insurance, medical care, family and so on in the future may be included in the scope; Insurers are not limited to a friend, can also have multiple friends, relatives, mutual underwriting of the number of people in the circle, the more risk resistance, the insurance companies charge a lower rate. When mutual insurance between friends, forming a pool of funds. In addition, the insured also needs to pay a certain insurance fee to the insurance company, which is much lower than the normal insurance fee, usually: the insurance fee paid to the social circle contractor + the insurance fee of the insurer < The insurance fee of the same insured. When a risk accident occurs, first, the fund pool formed between the mutual contractors to cover the risk, when the fund pool can cover the risk, insurance companies do not intervene. When the risk exceeds the scope of the fund pool, the insurance company intervenes. After the agreed time covers the risk, the remaining funds of the pool are returned to the social circle insurer (including the insured in the case of mutual underwriting).

Friendinsurance operation mode

In Germany, each person holds 5 insurance policies, of which the individual liability insurance is the most German must buy. German students pay an average of € 55 to get 10 million euros in loss guarantees. If 5 friends are bound together, no compensation is incurred, the year can be refunded for 24 euros, and the remainder may be regarded as a catastrophe loss reserve. This model reduces the risk of fraud and reduces small claims, because friends are embarrassed to pay, and these claims will cost the traditional insurance companies a high fee.

(Responsible editor: Mengyishan)