Author: Xin Jie
Zhongan Online (6060.HK, hereinafter referred to as "Zhongan"), a leading insurance technology company, is dedicated to serving the new generation of people and providing eco-oriented insurance. The recently disclosed report shows that Zhongan's total premium income in the first half of the year was 5.148 billion yuan, an increase of 106.6% compared with the same period last year. Among the five major ecological businesses, healthy ecology, consumer finance ecology and automobile ecology have become the main driving force for the growth of premiums.
As a leading domestic Internet insurance company, Zhongan has chosen to sink the new and long tail markets in the past five years. Through precipitation and export of technology, Zhongan has broken through the positioning of pure Internet insurance companies, moving from "selling insurance" to "exporting science and technology" and "technology + insurance" dual-engine driving mode.
In the recent "Zhongan Open Day", Zhongan CEO Chen Jin said that after several years of development, insurance technology bank to the middle, technology has been empowered by insurance from the initial focus on channel innovation, to focus on refined management innovation stage. "In the future, Zhongan will deepen the reshaping of wind control, claims and other links in science and technology at home and abroad, and externally, through the export of science and technology at home and abroad, fear financial boundaries, deepen the popularization of science and technology, and create Zhongan ecological cluster." Chen Jinru said.
Reshaping the insurance chain
PwC's Global Financial Technology Survey 2017 shows that 45% of traditional insurance companies have established partnerships with insurance technology companies to ensure that technology-driven innovation in insurance will become a "new normal" for the insurance industry.
From the process point of view, Internet insurance can usually be divided into product design, pricing underwriting, ecological distribution, claims settlement services, technical systems and other links. The significance of insurance technology lies in reshaping the value chain and providing a new incremental market.
Zhongan's entry into the market is aimed at the unnoticed pains of the market - the insurance needs of the younger generation. On this basis, based on the "small, high-frequency, mass" product form to cover a large number of users in a short time.
According to Chen Jin, in June 2018, Zong An interviewed 622 users aged between 18 and 40 who were enjoying the e-health series by random phone. 64.9% of the users bought their first health insurance policy through Zong An. In addition, the report showed that in the 300 million insurance users in Zhongan, the proportion of young people aged 18-39 reached 57.8%.
Public data show that between 2014 and 2017, public security fee revenue has been rising, compound growth rate of 95.7%, indicating that its products to a certain extent meet the market demand.
In fact, reaching young people has always been an important appeal of traditional insurance companies, but this clearly requires a breakthrough in the outdated customer, product and business model. Some senior executives of traditional insurance companies have pointed out that the difficulty of Internet insurance lies in the high frequency demand processing caused by the low threshold, and the product design and operation test the fine management and long-term follow-up service ability of insurance companies.
Chen Jin believes that under the enablement of science and technology, insurance pricing, underwriting, marketing, claims and other links of new applications emerge in endlessly, the current Zhongan through science and technology to reshape the value chain of insurance has entered the depth of business such as insurance wind control, claims.
For example, on the basis of health insurance, how to provide users with a full chain of closed-loop solutions ranging from disease prevention, follow-up interventions, health management, to security and medical services. At the same time, expanding services in the field of public health and medical data, such process reengineering and service overlay test the value chain remodeling capabilities of insurance technology companies.
In fact, this "service to find users" awareness has also greatly improved the user stickiness. Data accumulation makes it possible for thousands of products, services, pricing and operation. "For example, if a car insurance user is ready to go out, the system will suggest whether he should wash the car, push the number, and embed more value-added services in it." Zhong an automobile business group president Wang Yu disclosed.
The penetration of this technology is also reflected in the performance data of Zhong An. Its semi-annual report shows that while premiums are growing rapidly, its key indicators are optimized compared to 2017, i.e. the overall cost in the first half of 2018 is 9.1% lower than that in the whole of 2017, which is closely related to the efficiency optimization and scale-driven brought by technological change.
Technology output "three links jump"
In addition to internal self drive, Zhong An is gradually exporting these proven insurance technologies to the outside world.
It is understood that Zhongan has gone through three important stages in the process of scientific and technological advancement, namely, from internal training to gradual opening up, and then to accurate output, and the needs of science and technology are gradually changing from simple to complex.
According to Zhongan Online CBO, Zhongan Technology Executive Director Jiang Xing, its initial technology research and development is facing the Internet massively high concurrency scenario. "This system provides a tremendous impetus for innovation in traditional insurance, such as health, vehicles, and solves the problem of stable and safe billing, taking into account both efficiency and cost." Jiang Xing said.
Since then, through the establishment of an open platform, Zhongan allows technological innovation to quickly cover more vertical, head, long tail Internet platforms and scenarios, to achieve rapid docking with external partners, so as to achieve more scenarios and channels up to link more services down. On this basis, Zhongan's technology gradually completed commercial commercialization and system export, entering the 3.0 stage.
It is reported that Zhongan Technology, a subsidiary of Zhongan, has formed five commercial product lines, including insurance technology, commercial insurance open platform, small and medium-sized banking scene, artificial intelligence large data development and block chain. In the view of Chen Wei, CEO of Zhongan Science and Technology, Zhongan's scientific and technological capabilities are not limited to an internal line of business or product line, its advantages lie in the combination of capabilities and capabilities, industry and industry links.
In fact, the insurance technology products in the above product line have begun to "go out".
Recently, Zongan International signed a shareholder agreement with the Softbank Vision Fund to invest $200 million step by step to promote Zongan's technology solutions export business overseas. Mr. Xu Wei, president of Zongan International, said that the early stage of the cooperation will focus on Asian markets such as Japan, South Korea, Singapore and Thailand, combining Zongan's insurance technology with the rich international ecosystem of Softbank.
It is revealed that the entry point of technology "going out" is still Zhongan's experience and system in the field of digitization. "Our main target is two types of customers - traditional insurance companies and Internet platform companies, and the advantages of Zong An lie in the flexibility of the business and the ability to link to the industry." Xu Wei said.
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