In-depth analysis of the development of insurance industry in large data age

As with every traditional industry, insurance is also heavily impacted by the internet, which even the insurance industry agrees. The prelude to the combination of insurance and the internet has been opened, what will be staged in the future? I'll tell you what I think.

The first act of channel change: insurance Net Sales

Taobao has just ended the June wealth management Day, Taikang Life, a product of the three-day activity in the total sales 88.6 million, is the June financial day sales of the highest single product. This number is an exciting number for many FMCG industries. But for the 2012 total premium scale of 75.4 billion, equivalent to 207 million per day Taikang, this is nothing strange, even some insipid. Insurance NET PIN, this is just a start.

The trap of the channel

The traditional insurance industry has been facing a channel of difficulty. First of all, life insurance.

When the domestic life insurance industry started in the 90 's, it mainly relied on the agent channel. Because the insurance agent belongs to an insurance company, only can agent the insurance company's product, in the sale unavoidably puff, the false marketing. Coupled with the one-sided pursuit of performance by insurance companies, it has created a vicious circle of abusive expansion of agent system, screening and training lag, more false marketing, worse market transformation, and therefore more brutal expansion of the agent system.

At present, there are nearly 3 million insurance agents in China, the average monthly commission is only 1500 yuan. Low security, high flow agent system has seriously affected the life insurance industry social cognition. Lang-Ping said that our insurance is to engage in MLM, despite the extreme, but a certain public voice. However, the Commission system has already tied too many interests, and the agent system is still the main marketing channel of life insurance companies, life insurance companies would rather thirst, also can not do to repair cancer.

"Silver insurance products" tied to the banking system are another cancer of the life insurance industry.

The Life insurance company launches the multi-year, a lump sum insurance + wealth management product, confuses and misleads the bank to deposit the regular elder, weakness the deposit into the insurance. Among them are the number of postal life. The users who use postal savings are mostly middle-aged and elderly users. 2011, a "China post rich surplus 1th" insurance (dividend type) of the silver products of the annual premium income of 7.847 billion yuan, accounted for in the year of all the income insurance premiums 97.83%.

In order to scramble for bank resources, insurance companies into vicious competition, at the expense of making a yell. Take 5-year universal insurance as an example, the general handling fee is capped at 3.2%, but in fact, more than 3.5% of the usual fees, and some even reached 6%, these fees partly through the normal channels to pay, and some of the insurance salesman privately to the bank financial manager. This excess cost is often the price of compressing the insurance salesman's salary, even by the insurance company to advance separately. Eat maggots and fat, do not know it can.

Compared to life insurance, the insurance company's sales channels have not been opened. In addition to car insurance because there are mandatory requirements, other types such as home insurance, travel insurance, vehicle accident insurance and so on because of the low premium scale, can not form an attractive insurance agent, and therefore can not build its own sales channels, have to find a concurrent industry agent. Auto insurance relies heavily on the 4S shop, travel insurance relies heavily on travel agents, aviation accident insurance relies heavily on airlines and ticketing agents. It was only in recent years that ping an motor vehicle electric sales tried successfully to open a new situation for auto insurance.

The opportunity of the Internet

The development of the Internet has created an unprecedented direct access to consumer information, making insurance an unprecedented "direct" route. The nature of the insurance is suitable for e-commerce, it does not need to produce, no warehousing, no logistics, users have the need to immediately generate policies. As long as the marketing cost is low, the Internet is undoubtedly a more reliable and sustainable marketing channel for insurance companies. At present, major insurance companies in China have tried hydro-electric operators. Ping An, the Pacific, etc. launched the online mall, consumers can buy insurance products on its official network, while the insurance companies and electric enterprises actively cooperate, the previous article Taobao insurance is one.

How to balance the relationship between network distribution channel and offline channel is a difficult problem that each insurance company should face. The more unwieldy the company, the harder it is to transform. For the insurance company, this is a great opportunity to move lightly and slowly.

But the internet is not Santa Claus. At the same time as the access to a key, it also creates an unprecedented and transparent market environment, which brings new challenges to the insurance industry.

The second act of product change: Return to the nature of insurance

Taobao insurance online More than two years, stationed in the 12 insurance companies, are the largest domestic market share of the major companies, product categories across the financial life, covering the hundreds personal products. In terms of the current volume of transactions, a rough statistics of 2/3 of the policy is with a safe transaction, far greater than the actual risk of the market share. In addition to operating factors, you can see that consumers in the online buying insurance is different from the traditional channels of consumption mentality. How do consumers choose insurance on the Internet? Product change is imperative.

In the era of agent marketing, product alienation

The marketing of the traditional insurance is misleading, except because the agent training is not in place, the supervision is not strict, the quality should be improved, the stag of the insurance product "The" is also an accomplice.

Because the agent can only agent an insurance company's products, so consumers often face N company's agent, holding the products of each family repeatedly. At this time the standardized product is easy to compete. Therefore, the insurance company deliberately differentiated product details, in order to seek differences and differences in the details of the product features play tricks in the microscopic product parameters. Product complications, the use of consumers do not understand compound interest, more do not understand the life table information disadvantage, leveling their own product disadvantage, one-sided emphasis on the marketing ability of agents, promote sales.

On the other hand, the agent's commission and the scale of the premium related, this structure also stimulates the agent to abandon the lower rate of the protection of products, more hard to choose a high premium financial products.

Insurance deviates from the nature of security. Put the good ducks do not do, a moment to wipe the beef paste disguised as beef, while the lamb paste filled with mutton. The path of alienation is not long.

Internet age, product transparency, innovation, customization

The Internet environment requires transparent, concise products. It is obvious that consumers can not understand the product is not going to order. Insurance companies also noted this point, the current number of insurance companies in the online market products are mainly to protect the function of a strong standardized products.

After the prosperity of the consumer is bound to be the rise of platform and Mall-type Web site-integrated shopping malls such as the cat, independent platform such as Rich head, are the rise of the two years of insurance product aggregation class site. Consumers always have to take the insurance products more than one to decide the purchase demand. For standardized products, brands and prices are of course important factors, and small companies to take a differentiated route, we must seek innovation, but also under the sun of innovation.

In fact, in a different perspective, our present age is a period of insecurity, which should be an era of strong insurance demand. Problems of food safety, safety of public places, problems of safety of common facilities, problems of wealth security of middle class, and aging of urban population. These uncertainties about the future are the social responsibilities that the insurance industry should assume.

Can I have a trench oil insurance? Can there be a job insurance for college students? Is there any insurance for a college student to start a business? Can I have a price insurance? Can I have a formaldehyde insurance? Can I have a major disease insurance for a thyroid nodule?

The internet is entering the era of a giant cross-border PK. Ali to do credit, Tencent to do securities, peace also to do second-hand car trading. If the insurance industry does not take the initiative to meet the challenge, there will always be other industry giants in the life of leather insurance! When Taobao Custom launched C2B insurance innovation, when QQ Group, micro-letter group can be customized group insurance, and even the formation of captive organizations, the insurance industry to wake up too late.

And they will certainly do so because they have the data to shake the insurance industry in their hands.

The change of industry in the third act: insurance calculus in large data age

To put it, the insurance industry is the first to establish a scientific and perfect data statistics system, and statistics for the business as the foundation of the industry. But today, on the eve of the big Data age, the insurance industry, especially China's insurance industry, has been left behind.

I don't blame the insurance industry for its lack of awareness of innovation. Information revolution is the theme of the Times, the general trend. Internet industry sits on the data portal, there is a traditional cement industry to exclaim change, such as insurance This is no cement, all rely on the mouse industry is in crisis.

Insurance integral in the age of large data

The C2B model will be transformative. By the Internet to integrate the clear needs of consumers, and then organize the traditional industry for fine production. Market-oriented precision planned economy? Superstructure something not to say, but anyone who can see this is the lowest cost of communication between consumers and producers.

The same is true for insurance. A consumer through the C2B model to create a concept of insurance products, other consumers follow suit, and then the insurance company to bid a single, this model will certainly have, but also save more than channel costs. The reverse choice is certainly a hassle. But the product innovation that can be produced from now on will be endless.

Once I talked to an IT engineer about this C2B insurance innovation model. He said he would have to launch an "outsourcing insurance". Outsourcing 20% of the project is often not received, he reluctantly had to raise the price, the profit to do 80% inside. This is almost an industry unspoken rule. If you can have insurance companies willing to launch this product, the establishment of a good faith database, he is more secure outsourcing projects, and the transaction costs can also be reduced.

Let go of whether this demand can be set aside. Similar segments of the insurance needs, there is a strong pertinence and applicability, the traditional insurance companies are difficult to understand, only through the internet to gather less than many, meet the law of large numbers for insurance companies to defuse the risk costs.

Insurance differential in large data age

It is not enough to operate on the law of large numbers. Understanding the risk, reducing the cost of risk, is the real connotation of insurance, even to achieve personalized risk control and pricing (personalized rating), variable risk is controllable.

The Big Data era, the unprecedented creation of precise wind control of each insured subject to the possibility. There has never been such a rich, multidimensional, low-cost data, so systematically and updated to provide insurance industry.

Imagine this scenario:

You get up in the morning and your cell phone warns, "according to the wrist-wear device, you fall asleep Three o'clock last evening, and your sleep depth is seriously inadequate." Today light rain, road slippery. The risk index for your driving today is 84. Today's car insurance price is ￥270. It is advisable to call a taxi to work. ”

The above scenario is fully achievable with existing technology. We just haven't defined insurance that way.

Large data to make the meaning of differentiation, the first to let insurance companies have a clearer understanding of the subject, second, the safety of the standard can be dispersed into a separate pricing, separate underwriting, separate claims of the smallest granularity, the third granular data for easy experience iteration, rapid adjustment of product strategy and rate structure to gain market competitive advantage.

Written in the last

The real combination of insurance and the Internet is thinking. A history of data as the means of production, vocational system training data statistics professionals, with strict data and algorithm standards for supervision, approval, approval of the industry, and a sitting data jinshan, tentacles spread over almost all industries, at the same time their own rapid evolution, changing the industry, in fact, is the perfect "brain plus limbs" combination. This combination of thinking will be much more explosive than rewriting the insurance industry. And, this explosion, we're about to witness. (This is the exclusive starting titanium media)

(Responsible editor: The good of the Legacy)