Technology empowerment industry changes, digital transformation of insurance companies, reshaping value chain

Technology empowerment industry changes, digital transformation of insurance companies, reshaping value chain

Author: Wang Qing

Sino-Singapore Online Shanghai, September 12 (Xinhua) In recent years, the speed of integration of insurance and technology is accelerating, insurance technology is gradually penetrating into the various processes of insurance management and management, the value of the Internet is also breaking through a single channel attribute. Undoubtedly, the most important reason for the traditional insurance technology layout is to carry out digital transformation, use the means of science and technology to endow the reform of the industry, and ultimately achieve the effect of cost reduction and efficiency, to cope with the multiple pressures from the insurance industry and outside.

"Technology enabled insurance industry has become the industry's undisputed trend, insurance companies themselves are also increasing the layout of science and technology. Because in the past few years, financial technology, especially insurance technology, is developing rapidly. This is no longer a simple change in the sales channels and product forms of insurance companies, but a comprehensive empowerment of all aspects of the insurance value chain, bringing great changes to the industry. Zhu Junsheng, professor of the Institute of Finance and vice director of the Insurance Research Department of the Development Research Center of the State Council, told

In fact, many insurance companies have begun to adopt the "two-legged walk" approach, on the one hand, to increase investment in science and technology, self-built technology subsidiaries, about 15 insurance companies have invested in 46 technology subsidiaries. In addition, many small and medium-sized insurance companies choose to cooperate with technology companies to obtain technical support, thereby enhancing the competitiveness of the industry.

Data show that Ping An has 10 science and technology subsidiaries, including e-commerce, medical and health technology, intelligent technology and so on. Pacific Insurance Group has also invested in a number of sub-areas of science and technology companies, including information technology, automotive industry, medical technology and at least 9.

Song Qinghui, a financial commentator, told Xinhua. com that the main reason leading to the acceleration of digital transformation of insurance companies comes from multiple internal and external pressures.

As far as external pressure is concerned, the most obvious is the entry of Internet giants. A phenomenon that can not be ignored is that the premium scale and growth rate of various third-party sales platforms have surpassed the self-operated network platform of insurance companies and become the primary channel of online insurance distribution. According to the data of the Banking and Insurance Regulatory Commission, the premium income of Internet insurance in 2017 was 183.529 billion yuan, accounting for 73.71% of personal insurance and 26.29% of property insurance respectively, and the number of Internet insurance signatures was 12.491 billion, an increase of 102.60% over the same period last year.

The latest statistics show that by the end of 2017, Internet giants Ali, Baidu, Tencent, Sina and Suning had taken stakes in 12 companies with insurance-related licences. In addition, the traditional industry giants are also distributing to the insurance industry.

"In the case of BATJ rushing to the beach insurance industry, most insurance companies themselves lack the accumulation of cutting-edge technology, for these enterprises, how to find their core competitiveness, seek differential competition, perhaps use insurance technology to make up for the shortcomings, or with the Internet giant cooperation and so on." Song Qinghui said.

It is noteworthy that, with the development of science and technology, the inefficiency of traditional insurance companies, over-reliance on marketers and agents and other issues are becoming more and more obvious, which has become a steady forward industry "obstacle".

At present, the Regulations on the Supervision of Insurance Agents (Draft for Consultation) has been promulgated, which once again clarifies the situation of separation of production and marketing in the insurance industry. In the future, the development of insurance intermediaries will be accelerated, where intermediaries include not only sales intermediaries, but also estimates, and even product development and other aspects of the work that can be outsourced from insurance companies.

"According to the current characteristics of the international market, combined with the inefficiency caused by the closed-loop production process of traditional insurance companies in China's insurance ecology, the ecological division of labor in the insurance industry will be more detailed in the future." Zhu Junsheng said that under this background, traditional insurance companies are bound to strengthen their own capacity building, improve operational efficiency, and maintain competitiveness in the market.

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