What are the innovative development models in the insurance industry?

Dynamics: change of technological progress and consumer behavior
If information technology is developing rapidly (see Figure 1), consumer expectations and behavior also change, and the mutual promotion of the two has driven the high song of Internet insurance. Insurance companies need to plan ahead, respond to changes in customer behavior in a timely manner, and apply new technologies for rapid development, and strive to compete for a place when the industry competition pattern is reshaped.

The penetration speed of mobile interconnect users is far beyond imagination. The Internet has been popular all over the world for more than ten years, and emerging mobile smart devices penetrate faster. As a customer interactive low -frequency business, the insurance business must establish contact with customers through some means in the era of mobile internet to prevent it from being "processed" by the mobile Internet to become a simple product supplier. Interconnected distributors -this is the biggest challenge for mobile internet to bring insurance companies.
S social network influence is getting bigger and bigger. BCG Global Data Research shows that 26%of customers recommend insurance companies on social media, and 21%of the investigators decide which company products to buy through the recommendation information posted by friends or family members on social media. Users' dependence and trust in social media brings great opportunities and challenges. These social platforms are likely to be a place for customer discussions, comparison, screening, and purchase of insurance products. If you can develop a good social strategy, it will bring great brand effects.
Comoton computing greatly reduces the calculation cost. With the significant decline in calculating costs, the cost of IT operations can be greatly reduced, allowing enterprises to invest in some innovation and investment. More and more insurance companies are already using cloud technology, such as transferring HR systems and financial systems to cloud service platforms. BCG judges that cloud computing is more favorable for small and medium -sized insurance companies. Because cloud technology allows small insurance companies to buy computing and service capabilities like water and electricity, while helping to reduce IT input costs, they obtain IT services and capabilities comparable to large insurance companies.
The Internet of Things and Vehicle IoT technology can be called the biggest influence on insurance companies. Many insurance companies have applied related technologies in their products and services. In Italy and the United Kingdom, the application of sensors has been relatively successful, and it has changed greatly for automotive insurance, home property insurance, and life insurance. For example, the driver's driving habits are monitored through the car sensor, and the premium amount is determined based on the driving habits, so that the problem of high premiums with high driving habits is solved. For another example, wearable devices in the field of life insurance and health insurance can be monitored in a timely manner, and the physiological data of the insured can be monitored in a timely manner, and the insured should be prompted as early as possible to prevent health risks and reduce debt. It can be seen that the Internet of Things technology can play a great role in determining the pricing benchmark and preventive risk in insurance companies. However, in the Internet of Things field, Internet companies also chose to enter the field of smart home, such as Google acquired NEST and Samsung bought it. The Internet company has a great competitive advantage in the Internet of Things field, making insurance companies a participant in the entire smart ecosystem rather than leaders, which has brought great challenges to insurance companies.
With the changes in the above four technologies, consumer customer behavior has changed profoundly. The online method has become an increasingly important channel in the process of insurance sales. A typical customer purchase insurance basically includes 5 key steps: the initial purchase thought, preliminary research, quotation, product selection, and then final purchase (see Figure 2). It can be seen that customers actually gradually clarify their intention through different channels, rather than through a single channel. According to a survey by BCG in 12 markets around the world, only 8%of users who purchase insurance products do not use online ways to buy products; 92%will use online channels to purchase insurance products Among them, 88%use two or more online channels.
Please click Enter the picture description
The method of comparing the traditional dependence on the sales of the agent sales insurance, the global insurance industry is actively thinking: how to gradually digitate and online the process of insurance sales? How to accept the original agent and make full use of digital channels? This is one of the main problems of insurance companies in response to the changes in consumer behavior. It is both opportunities and challenges.
Countermeasures: Improvement and innovation business model
Over the past ten years, insurance companies have been paying attention to improving the existing business model through digital channels, and gradually realizing the evolution of traditional insurance business models to the Internet insurance model.
First of all, as consumers' acceptance and dependence on digitalization are getting higher and higher, insurance companies have begun to rethink the customer experience and establishing the best digital experience of similar types will be a major opportunity. According to the survey, in the improvement point of Chinese consumers hope to make insurance companies: the first is personalized product services; the second is the protection of privacy; the third is the simple and convenientness of the user interface. If the insurance company can make appropriate improvements on the high expectations of consumers, I believe that it will be able to greatly improve the customer experience and then get the lead in the hearts of customers.
For example, Youi, established in 2008, is an Australian property and commercial insurance company. It improves customer feedback methods, introduces public real -time evaluation, and enhances customer satisfaction. The YOUI website contains innovative "walls". In real time, customer evaluation is posted. When customers browse other pages of the website, the latest evaluation will appear at the bottom of the screen. It can also filter the evaluation according to the popular keywords. Among the current 68079 evaluation, user satisfaction is as high as 85%, which has achieved great success.
It, a health insurance company called Oscar, established in 2013, provided online insurance platforms only in New York State. The company has played "customer -centric" to the extreme. Customers can complete insurance purchases, claims, etc.; When customers choose to buy insurance, the website can adjust the predetermined parameters according to the customer to each step. Provide instant pricing information; when the client appoints the doctor for a doctor, the website perfectly combines the doctor's postal information, Google map and other functions, allowing the customer to quickly complete the appointment and learn the detailed consultation address. It is through these intimate and minimalist functions that OSCAR provides customers with a "screaming" experience, and it has achieved great success for a few months.
Secondly, the application technology of insurance companies to reduce operating costs, improve efficiency, and help enterprises create cost advantages. Many foreign insurance companies have achieved very good results in using technology to reduce costs. Taking auto insurance as an example, BCG has been calculated. Information technology can reduce the comprehensive compensation rate by 16-22 percentage points, of which the cost can be reduced by 10-12 percentage points, and the compensation rate is reduced by 6-10 percentage points.
Finally, insurance companies are actively digging data value. Although the insurance company has a large amount of data through accumulation throughout the year, there are problems such as the problem of privacy leakage, unwilling to share, and incorrect customer information. The first problem that needs to be solved is the lack of data. Not comprehensive and accurate. In fact, most customers are willing to share information in exchange for practical interests, and Chinese customers are even more. Among them, the price reduction and better claims process are the exchange of interests that customers are most willing to accept.
Discovery is the largest health insurance company in South Africa and a partner of Ping An Health Insurance Company. Its experience in data acquisition is worthy of reference. Discovery's "Vitality" Health Promotion Program aims to encourage consumers to pay attention to their own health by establishing a scientific health management and incentive system, and intervene in the health behavior and diet of participants to change their behavior. For example, a person's health can be effectively evaluated through online and offline. The company will give customers different tourism and shopping rewards according to different health state, and affect the amount of subsequent premiums. Through this plan, Discovery collected a large number of customer data, but customers also obtained the actual benefits through the plan and formed a win -win situation.
In addition to the improvement of the existing business model mentioned earlier, many of the Internet -based subversive insurance business models also appeared.
For example, many insurance companies have established a new insurance business participation method around the provision of long -tail products and services. A British insurance intermediary company BoughT By Many attracts people with the same insurance needs through social platforms to uniformly negotiate insurance clauses and quote for these customers. Customers can purchase insurance according to their specific needs. It is also to reduce customer loss rate for insurance companies. Bought by Many's business model is a application of social interaction insurance, more for customers for long -tail demand.
The new business model that has more fully applied social interaction assistants now appeared- to allow customers to form a group and share risks. Withdrawing, unless the capital pool compensation for insurance companies will be responsible for subsequent payment, and if the shared funds pool will end at the end of the year, it will be returned to customers as an incentive. This model makes full use of word -of -mouth and recommendation to reduce customer acquisition costs. At the same time, due to a strong incentive mechanism, customers will choose customers with less risks to be included in the group and eliminate high -risk customers, reducing the overall risk of insurance companies.
In addition to the establishment of a new business participation method, another large category of disruptive innovation is built around the ecosystem. In the construction of the ecosystem, there are two types of participation models, one is built by itself, and the Ping An Group of China adopts this method; the other is to build it with others, and the German Andlian Group uses this method.
Practice: Integration and constructing an ecosystem
The joint report "Insurance and Technology: Evolution and Revolution" in the joint report of BCG and Morgan Stanley mentioned 14 key trends that may affect the insurance industry ( See Figure 3) and classify according to its potential impact and uncertainty.
Please click to enter the picture description
This two of them have high influence and high uncertainty at the same time, that is, the neighboring industry entry into the insurance industry and the integration of insurance into a wider ecosystem. Under its influence, there are many uncertainty. We cannot determine how much impact of the new ecosystem on insurance companies. What insurance business links will intervention in the neighboring industry and which new insurance products / services will be introduced? However, the pioneers at home and abroad have come to the front. Germany Andlian and Ping An of China are actively coordinating or integrating new ecosystems, building a new insurance ecosystem, or actively participating in the ecosystem insurance as insurance companies.
Theold Allianz Group attaches great importance to digitalization. It provides customers with unique experiences through digital product delivery and services to create a unique customer ecosystem. Alliance's investment in the development of digital development, starting a global project about digitalization, unified global command, and invested a lot of financial support. It comprehensively builds various digital capabilities, enhances customer experience through unified customer interfaces, developing mobile clients, and introducing social media. At the same time, the open collaboration with enterprises, schools and innovation institutions was actively promoted to establish the "Andalian Digital Laboratory".
Antian Lianlian actively created an ecosystem, established a unified global platform, market management and innovation mechanism, and widely established cooperative relations and created a very attractive product package for business partners and customers. For example, Allianz cooperates with Germany Telecom to promote the concept of "digital age life", and integrate two technical directors to develop products for corporate customers and retail customers: for retail customers, Allianz and Germany Telecom develop a digital "connected home" Services, use sensor technology and intelligent telephone monitoring customers' homes and provide assistance services; provide corporate customers with comprehensive network security solutions and insurance products.
The Ping An Group is committed to building its own financial ecosystem. Starting from property insurance, it has now become a comprehensive financial group that provides various financial, financial management and other services.
In Ping An to attract customers by opening a new business line, and then migrate customers to the traditional financial service field: such as expanding the customer base for Ping An's ecosystem through the Lujin Institute P2P borrowing platform; At the same time, it also provides insurance and financial products, subverting traditional sales and distribution models, and encouraging customers to use other new businesses in Ping An; Ping An released the "One Wallet" in the spring of 2014 , Built -in connection to other products such as Lu Jin, and provide short -term small investment and small loans; establish a Wanlitong customer points plan, cooperate with business partners to establish a better customer experience, touch ordinary consumer groups, and introduce customers into Ping An into peace. ecosystem.
In the number of customers in the Internet, cross -selling is achieved through the migration of financial supermarkets and customers. Ping An's financial supermarket is committed to creating the most complete product platform. All products of Ping An can realize one -stop purchases. Ping An insurance customers, bank customers, and investment customers can obtain comprehensive financial services through one account. Ping An emphasized that the migration of customer resources in the three core financial service sectors of the group, through establishing a shared technology platform to make it easier for customers to migrate and increase cross -sales.
D digital transformation: consciousness, strategy and ability
Compared with the global insurance market, the scale of the Chinese insurance market has been among the best. According to statistics from the 2014 premium market (see Figure 4), China's premium market size has reached 163 billion US dollars, ranking seventh. However, China's insurance penetration level is much lower than that of developed countries. In 2013, China's premium depth was only 3%, and the premium density was only 1300 yuan/ person. The premium depth of developed countries was mostly between 8%-12%. For the RMB premium density of up to 15,000-30,000 yuan/person, the Chinese insurance market still has great excavation potential.
Please click to enter the picture description
Compared with China's economic development. Taking life insurance as an example, the growth rate of total premium income in China's life insurance industry is far lower than the growth rate of GDP. Essence
Is behind other developed countries and China's economic development level, driven by changes in information technology and consumer behavior, more and more insurance companies are undergoing business improvement and innovation. Challenge and opportunities, how can Chinese insurance companies adapt to the current situation, take the windmill of Internet insurance, and occupy a place?
First of all, you should recognize the shortcomings of consciousness, the peace of mind, and the change of concepts. In China, Internet companies such as Ali and Tencent are entering the financial sector with their fists. With the entry of Internet companies, the consumption habits and expectations of Chinese consumers have changed a lot. Insurance companies must plan ahead, actively lay out multi -channel integration to create digitalization capabilities, in order to meet customer needs through digital advantages in the future. Win the battle for guests.
Secondly, there should be a clear digital transformation strategy. From the aspects of digital positioning, digital roadmap, ecosystem and cooperation strategy, the company's digital development strategy is clear. The digital positioning here is the highest and ultimate goal that insurance companies are used to develop digitalization. The company should have different choices in combination with its own advantages and disadvantages.
An digital positioning is determined, the insurance company needs to formulate its digital roadmap. In order to achieve strategic goals, various transformation measures are required, which involves organizational structure, job performance, business process, corporate culture, IT system, product innovation, etc. In various aspects, this roadmap must be gradually continued without one overnight.
In the end of the construction of digitalization, and this step is also the most difficult. When implementing digital transformation, first, insurance companies need to learn from Internet companies, with innovative management and culture. In short, it is necessary to have the innovation and trial and error culture of Internet companies. Consider digital transformation. Second, the digitalization of the core process is required to provide cross -channel, end -to -end business processes, rather than a split process. Third, insurance companies must have the ability to adapt to dual -speed IT, that is, on the one hand, it must have traditional IT capabilities to meet the stability of the company's traditional operations. ; We must maintain the vitality of the old business, but also supplement fresh blood through the new business.
In short, the advancement of technology and the change of consumer behavior are reshaping the global insurance industry, which coexist with opportunities and challenges for insurance companies. Although at present, the overall digital improvement of the industry is different from the scale of innovation, the insurance company has no retreat at all, and only the backwater battle. Insurance giants such as Allianz and Ping An have taken one step on the road of transformation, and small and beautiful innovations such as OSCAR, BOUGHT BY MANY have also made us imagine. The Chinese insurance industry standing at the crossroads urgently needs to change its concepts, clarify strategy, build capabilities, and win a place when the Internet insurance reshape the industry structure.