In 2015, China’s online insurance premiums reached 223.4 billion yuan, accounting for nearly 10 percent of the total. In 2017, data from the Internet Property insurance Business Bulletin released by the Insurance Industry Association of China showed that the premium income of Internet property insurance reached 249.349 billion yuan in this year, and the market share increased significantly, accounting for 18.97% of the total premium of the industry, with a year-on-year increase of 8.97%.
The increase in the overall premium scale of Internet insurance companies in these two years is also attributed to the increase in the number of Internet insurance companies in recent years. Among them, there are four licensed Internet insurance companies in China, namely Zhongan Online, Taikang Online, Anan Property insurance and Yi ‘an Property Insurance. These four companies operate in the new mode of “Internet + insurance”. Compared with traditional insurance companies, Internet insurance enjoys considerable advantages in terms of concept different from the traditional insurance model, scope covered by the market, and diversity of operation methods, with bright prospects for development. But is that really the case? Might as well take peace of mind property insurance as an example for observation.
Solvency decline, peace of mind property insurance development into a dilemma
Solvency is the most direct reflection of the comprehensive strength of an insurance company. A statistical report on the solvency of 87 insurance companies on the network shows that in 2017, only 23 companies showed an upward trend in solvency, while 46 insurance companies showed a downward trend in solvency. These 46 insurance companies are small and medium-sized enterprises, and the decline rate of individual enterprises even exceeded 50%.
As one of the representatives of small and medium-sized enterprises, Anxin Property Insurance was founded on June 26, 2015, and is one of the first innovative Internet insurance companies in China. Since its inception, will ease property-casualty insurance and technology as the sail forward, with “simple insurance” concept as the direction, this can be just like any other industry derived from the Internet vigorous development, through their own advantages to quickly expand market share, but the reality is run counter to the wishes, in the past two years have been lost in the rolling waves.
The annual report of Anxin property insurance shows that it lost 0.7 billion yuan in 2016 and 299 million yuan in 2017, a three-fold increase in the loss compared with the same period last year, in which the loss of accident insurance and health insurance exceeded 70 million yuan. As one of the main businesses, the auto insurance business insured a total of 270 million yuan in 2017, and the cumulative underwriting loss amounted to 125 million yuan. It can be seen that The financial income of Anxin property insurance in the past two years has been in a loss state, and it is facing more and more serious loss problems, mainly reflected in the loss of auto insurance and accident insurance, health insurance underwriting.
Underwriting losses have become an obstacle to corporate profits. In the solvency statements disclosed by the insurance industry in 2018, 39 companies reported negative net profits in the first quarter, accounting for nearly half of the total losses of 2.074 billion yuan, with an average loss of 53.1841 million yuan. Of the four Internet insurers mentioned earlier, only Yi ‘an property managed to eke out a profit.
Although the current peace of mind property insurance underwriting costs total growth, but did not get much profit, and most of the insurance has become a loss point. In order to turn losses into profits, Anxin property insurance wants to achieve profits by raising funds. However, due to problems in the investment strategy, anxin property insurance only obtained investment income of 24 million yuan in 2017, which is almost negligible in the face of huge losses.
Thus, peace of mind property insurance is in a dilemma, if you want to fight a way out in the brutal market competition, peace of mind property insurance needs to be prepared in products, services and other aspects.
Take the initiative to change in the face of complaints, but achieved little
In recent years, the total amount of Internet insurance business has increased. China’s Internet insurance companies signed 6.278 billion orders in 2017, accounting for 48% of the total number of orders. Anxin Property Insurance also has nearly 20 million customers signing orders.
Circ’s official website, according to the situation of 2018 insurance consumer complaints so far around the China insurance regulatory commission and protects inspect bureau in the first quarter of 2018 years a total received 22651 Internet insurance consumer complaints, complaints mainly focus on product sales to inform inadequate ambiguity, unreasonable claims conditions, rejecting claims with insufficient reason, etc., A large number of complaints are not only plaguing major insurance companies, but also peace of mind property insurance.
Anxin Property Insurance ranked second with 63.35 complaints per 100 million yuan, with an average of 63.35 complaints per 100 million yuan. In order to solve the problem of complaint, Anxin property insurance tries to solve the problem of application process through mobile Internet, cloud computing, big data, artificial intelligence and other technologies. At the same time, it changes the traditional claim process from the customer’s initiative to submit information to the insurance company’s initiative to collect information, so as to improve the customer’s claim experience.
Peace of mind property insurance in the face of difficulties actively seek change, but the effect seems not obvious. In a recent report on how insurance companies have handled complaints, Anxin Property ranked 49th with 60.93 points, compared with the industry average of 67.73.
Such a low evaluation also reminds the safety of property insurance, enterprises in dealing with complaints at the same time, in addition to the method to solve the problem needs to improve, whether to provide customers with quality service is also a very important part.
Generally speaking, the insurance industry is also a service industry in a certain sense. It is inevitable to encounter consumer complaints during the development of Internet insurance. However, in order to gain a head start in the market, we must first learn to win the hearts of consumers. In order to solve the problem of consumer complaints, how to make the product introduction more easy to understand, more convenient claim process is an urgent task to improve the peace of property insurance.
Loss reason is different, car insurance becomes fold halberd permanent station
Now the Internet insurance market Matthew effect is significant, want to narrow the gap between enterprises, should learn to borrow a stone to attack jade. In 2017, Huibaotianxia selected return on equity (ROE) as the index, and statistically concluded that the five companies with the lowest ROE in the past year among 72 companies were Zheshang Property Insurance, Fubang Property Insurance, Anxin Property Insurance, Libao Insurance and China Coal Property Insurance. The ROE of these five companies were all over -30%. That means the five companies lost a third of their assets in a year.
Tracing the causes of their losses, Zhejiang business property insurance because of individual cases caused asset losses; China coal property insurance and Liberty insurance is because of auto insurance business loss; Fubon property insurance in addition to accident almost no profit insurance; Anxin Property insurance suffered a loss due to a combined expense ratio of more than 100 percent and a low return on investment.
Enterprise losses and profits, might as well again to five other companies with the highest ROE is analyzed, the five insurance companies respectively sunshine insurance, agricultural insurance, the insurer, the insurer and the united wing on insurance, ROE is more than 10%, of which aiu insurance and sunlight agricultural risks, relying on underwriting profit, wing on insurance and the insurer by property of effectiveness of cash flow, Both managed to profit from investment gains even at underwriting losses.
Compare past data, discover although the reason of loss of each company is very different, but basically be in car insurance to accept this piece of failure, in already announced car insurance to manage result of 50 enterprises, only land insurance and sunshine property insurance realized car insurance to accept profit only. But among the non-auto insurance business, liability insurance caused by the loss is also the most tragic, a total loss of 1.1 billion yuan.
In a word, most profitable enterprises focus on investment profits and individual insurance underwriting, while auto insurance is a place where all small and medium-sized enterprises will lose, so the investment in auto insurance should be reduced as appropriate, and limited resources should be allocated to projects with more conversion rate.
Internet insurance development is not perfect, innovation is imminent
Internet insurance after years of trying, many Internet, including security insurance, the insurance company development is still in the hazy stage, most of the enterprise, all in the name of Internet insurance company actual traditional insurance or financial products, a lot about the future financial insurance products of science and technology is still in the stage of undeveloped, not promotion. Coupled with people’s lack of insurance product concepts, these factors to some extent hinder the development of Internet insurance companies.
As a typical Internet insurance company, Anxin property insurance only achieves the “Internet”, simplifies the process of traditional insurance mode, and transfers the insurance application to the online after simplification, but does not achieve the “Internet insurance” in the real sense.
At present, the products and business models of Internet insurance are still in the exploratory stage. For example, some Internet property insurance companies have launched subdivision types of insurance such as “love insurance”, “bear children insurance” and “Lottery old people’s Risk”. However, most of these types of insurance end in vain, and only a few types of insurance have realized profits and been copied by other enterprises. Moreover, most of the new Internet insurance products are small, high frequency, massive and fragmented. The new insurance products that can really impact the traditional insurance products have not been proposed by enterprises due to the lack of relevant data accumulation. If we can find new land in this field, it is also a good way to expand the business and turn the loss into profit.
In addition, the core of Internet insurance companies lies in the control of risks. Risks always exist in the process of operation, the insurance company how to master the proper risk control is very important, should be combined with the data, the Internet and other big emerging idea, through the traditional risk aversion, loss control, risk transfer and risk retention four risk control methods, such as the product match the reasonable price, thereby boosting profitability.
In general, an excellent Internet insurance company should put consumers in the first place. On the premise of serving consumers, the company should realize segmented market layout and innovate products through artificial intelligence and other technologies, so that consumers can feel at ease in insurance investment. In addition, while obtaining underwriting funds, the company should learn to invest rationally and make more reasonable use of resources, so that the company can more calmly respond to market competition.
Article/Liu Kuang public account, ID: Liukuang110