Internet technology and insurance value chain

Many of the small partners complained that the Fox said so much internet finance is leaking insurance this piece. Let's have a big talk this time.

According to Booz Allen Hamilton, an American consultancy, selling insurance policies or providing services over the Internet is a much less 58%~71% cost than traditional marketing methods. Network Marketing channel for the insurance company is not only the importance of cost savings, the nature of the Internet scale can greatly expand the reach of insurance, so that more non-insurance users are converted into insurance users.

The Internet of insurance in China there are many space for development, the major insurance companies are also eager to develop their own products.

Then we will naturally ask a question: Internet insurance anyone buy?

Since 2005, when the Chinese introduced the first Zhangquan process electronic policy, the development of the network insurance is not as beautiful as people think. Back to historical data, China's insurance net is still very low--according to the data of Eric's consulting, the 2013 insurance net sales accounted for only 0.5% of all premiums.

There are many reasons for this situation. From the point of view of the demand side alone, there are two main reasons: first, the unit price is not high, and the second is the quantity.

Unit Price is not high

At present, most of the Internet insurance products are relatively simple, more standardized and less insured products. This is partly because Chinese consumers are wary of paying high premiums online. Compare net shopping you get is an entity of goods, online insurance, you pay the money to get only a contract or an email, if not Fu Gao words for large insurance policy or to be thoughtful.

It doesn't measure up.

The most important or because the user's active purchase habits have not yet developed, and the network sales channel coverage is the majority of the active purchase of customers. The insurance industry has a joke: "One person selling insurance, the family do not face." This is a joke, but it is not difficult to reflect the domestic people's prejudice against the insurance industry.

China's insurance penetration rate is very low. Last time with Taiwan's industry friends to talk about this topic, she could not help feeling, Taiwan's per capita policy of more than 3, the public's awareness of insurance is very high. Back to the mainland, life insurance products most people still because of the insurance agent or the bank, half-hearted unknown to buy down.

Sometimes it may be misleading to sell, and after buying it is a financial product rather than an insurance product. Customers take the initiative to buy insurance products or relatively few. And the total Non-life insurance premiums about 70% of the insurance part is due to the regulatory requirements have to buy, and now most of the car buyers are also through other channels (such as car dealers, electric sales) were contacted. With the network more familiar with the whenever, and gradually become the main car, insurance premium net sales ratio will be pushed higher.

In the product's supply side, that is, the insurance company's point of view, most insurance companies currently for the network channel positioning or stay in the "access to Customer" (lead generation) level-through cheap or even free products to obtain customer information (such as gender, occupation, telephone, e-mail, etc.), The customer is then initially segmentation, and the customer is upgraded (Upsell) through other channels, such as telemarketing or agents. Some insurers, of course, put internet channels at a higher strategic level, but there are still few in China.

Internet technology and insurance value chain

Knowing the status quo, we can think about how the insurance company can utilize the Internet technology. Let's talk about the value chain. If you do not look at the insurance company's capital Management and investment business, the general insurance process can be divided into four aspects: product design, marketing, pricing underwriting, claims services.

In the next section, we will talk about two aspects of product design and marketing.

The great Fox June has no interest with the object being analyzed, this article does not constitute any basis for investment decision.