Internet technology and insurance value chain (III.)

In this paper, the first two "internet Insurance people buy" and "talk about product design and marketing", continue to say how the insurance companies in the value chain dimension can be used in the Internet technology. This paper focuses on two aspects of pricing underwriting and claims service.

Pricing Underwriting

Pricing is a long-standing problem for domestic insurers. Insurance products are priced more complex. Compared with Western countries, the pricing ability of domestic insurance companies is weak, mainly embodied in two aspects: first, the accumulation of data, the first is the methodology (methodology). For example, a chestnut may occur only once in tens of thousands of years, but there is no record of such accidents in the data accumulated by the domestic insurance companies for decades, and the accumulation of the data does not support its pricing. And sometimes the methodology has yet to be developed, take insurance as an example, to protect the fire risk of a building, the number of trees around the building, this figure may affect the pricing of insurance (such as may hinder the fire engine closer, wood flammable may cause a ripple effect, but may also help the firemen to locate, etc.), perhaps not. This digital insurance company can collect, but how to use the concrete is not able to figure out.

In addition to capacity constraints, insurance companies have to face pressure from channel operators and regulators. For example, in recent years because of the slowdown in new car sales, large car manufacturers and distributors to maintain profits, with senior resource advantages, such as insurance companies to raise prices. A media report said: Shanghai's commercial car insurance rate has risen to 20% to 30% levels, this figure is far beyond the self-regulatory convention of Commercial Insurance 15% and the upper limit of 4% of strong risk. More than 30% to 50% of the outrageous rates in commercial insurance are found in individual areas. In terms of regulation, since 2006, regulators have slowed down the pace of market-oriented reforms in car insurance, enacted basic car insurance terms and rates, and greatly limited the pricing autonomy of insurers. Strong risk has been losing for many years since 2009, mainly because the flat rate does not reflect the rise in prices, personal compensation and car repair costs in recent years. But lately there is a tendency to market rates, for example, in the first half of 2012, the CIRC issued a notice on strengthening the management of the terms and conditions of the commercial insurance of motor vehicles, allowing the insurers to meet the requirements (the conditions are a little more, I don't list them).

In the face of so much pressure, how should insurance companies price? The boom in car networking may give a good lesson to the auto insurance business: A lot of foreign market participants have gone ahead of China, such as the progressive in the US, which launched a UBI insurance policy about 10 years ago. It will install a OBD in your car (on Board diagnostics, onboard diagnostics)--The Beijing Environmental Protection Bureau forced a lot of cars to install this gadget in 2006. OBD can detect whether your exhaust is exceeding the standard, whether there are problems with the engine, and so on, you can record the mileage of your driving, even analyze your driving habits. The simpler ubi will be billed according to the mileage recorded by the OBD: when you're driving, you don't charge money, it's good for people who drive less often. High-end Ubi will also record your driving habits: if you drive or answer the phone while driving, you'll be waiting for your next year's premiums to rise! If you follow the traffic rules very carefully when driving, you usually get a good discount next year. UBI encourages more responsible and reasonable means of transport to make the whole driving environment safer. Domestic do OBD have "with car" and "driver state" and so on, but there is still no development and insurance business cooperation.

As for underwriting, the main international reliance on large data: such as home insurance underwriting, U.S. insurance companies will be connected to contractor Connection, Eqecat and other data providers for underwriting. In China, February 4, 2010, the Sino-Insurance Association convened a small partner of the various insurance companies, the resolution of the member companies together to establish an industry insurance information center platform, which has brought great convenience for insurance underwriting.

Claims services

The biggest headache for insurers in the claims service is fraud. According to U.S. research institutions, the U.S. health insurance industry is likely to lose 60 billion to 250 billion dollars a year. And in China's auto insurance market, in addition to the customer itself, small car suppliers and car repair shop are involved in the wave of fraud insurance.

The traditional methods are simple and single, and can be detected only on the basis of the fraud that has been found in the past, and new frauds may be ignored directly. The introduction of the Internet, the insurance companies to detect fraud has brought a lot of benefits-the application of large data to reduce the risk of fraud well. For example, when dealing with a traffic accident, the insurance company searches the database for the victim's personal information and finds that he has been implicated in several car accident claims in other companies in the past one months, and this time he needs to consider the possibility of cheating.

In addition, the efficiency of claims is also the concern of various insurance companies, the development of mobile Internet has greatly improved the efficiency of claims. Ping An life customers can upload their own medical records, invoices and other materials for self-help claims, and then booking service personnel door-to-door receipt of invoices and other related materials. Insurance customers can also use photos to take photos of the scene, through the app to make claims. General payment time will not exceed 3 days, small even can realize the day of payment.

Finally, a summary of the best practices of insurance companies using Internet technology:

There is no interest relationship between Fox June and the object being analyzed, this article does not constitute the basis of any investment decision.