我们的报告出英文版啦
Friends from the global insurance market, the English version of Chinese Digital Insurance Industry Report is now available.
The report is co-released by Warp Speed Capital and InsurView.
In this report, you will find:
The most updated and detailed industrial data for Digital Insurance market in China
Insights into the latest trends
Case studies on innovative startups
Analysis on the development of car insurance in China.
The followings are some excerpts from the report
Industry
Chinese Digital Insurance Overview
Companies and premiums
According to CIRC data, 117 insurance institutions have been approved to run online insurance business in 2016, a 6% increase compared with 2015 (110). By the end of 2016, 75.97% of all the insurance companies in China had started Digital Insurance business by means of establishing websites and cooperating with third party platforms.
Chinese Digital Insurance premium income reached 234.7 billion RMB in 2016 and it is a 5% increase compared with 2015 (223.4billion). The growth rate in 2016 sees a decline compared with the 160% increase in 2015. Chinese Insurance industry sees its premium income reach near 3.1 trillion RMB in 2016, a 27.5% increase. The penetration rate of Digital Insurance in China dropped to 7.5%.
Proportion
We categorize Digital Insurance into Digital Property & Casualty Insurance and Digital Personal Insurance. The premium of the aforementioned two types is 40.302 billion RMB and 191.495 billion RMB respectively. And they account for 17.17% and 82.83% of total premium income respectively. The premium income of Digital Personal Insurance is much more than Digital P&C Insurance.
We can see from the chart above that the proportion of Digital P&C Insurance has kept declining from 91.15% in 2012 to 17.17% in 2016. On the contrary, the proportion of Digital Personal Insurance has gained from 8.85% in 2012 to 82.83% in 2016.
Conclusion
We think that the decline of premium growth rate and penetration rate is a result of tightened regulation. From the perspective of technology adoption, more than 50 institutions in insurance industry has started cooperation with third party cloud platforms and 104 institutions have issued 361 million copies of electronic policy. All these efforts have significantly reduced the operation cost and promoted innovation. We believe that with the further exploration into InsurTech, Digital Insurance will flourish even better in the future.
Digital Property & Casualty Insurance Review
The premium income of Digital Property & Casualty Insurance reached 50.23 billion RMB in 2016, among which the premium income of auto insurance is 39.894 billion RMB and non-auto insurance is 10.336 billion RMB. We can see from the chart below that the growth rate of Digital Property & Casualty Insurance in 2016 is negative---a 36.62% decrease. In the meanwhile, the penetration rate also decreased from 9.12% in 2015 to 5.75% in 2016. The poor performance can be attributed to the slump of digital auto insurance.
Digital Personal InsuranceReview
Digital Personal Insurance kept its steady growth in 2016. According to CIRC data, premium income of Digital Personal Insurance reached 194.495 billion RMB. It is a 32.7% growth compared with 2015 and a much larger scale than that of Digital P&C Insurance. However, due to the regulation policies from CIRC, the growth rate of Digital Personal Insurance slumped in 2016.
How is the Digital P&C structured?
What are the features of Digital Personal?
More to read in the complete version.
Case studies
No matter whether you are an insurance company going digital or you are a tech company running insurance business, the underlying logic is the same, that is, first, the ultimate purpose of applying Internet and digital tech to insurance business is improving efficiency and reducing costs in insurance business. Second, by leveraging new techs, insurers can change customer behaviors and promote the birth of new business models.
EverPro
Company Profiles
Approved by CIRC in May, 2011, EverPro is a national and comprehensive insurance broker headquartered in Beijing with 80 million RMB registered capital. EverPro’s primary business is life insurance and with the idea of love, they are promoting the development of finance insurance for the retired and high-end asset management.
Timeline:
2011, approved by CIRC;
2012, branches in Beijing, Shanghai and Shenzhen established;
2013, branches in Zhejiang, Jiangsu established;
2014, branches in Guangdong established;
2016, branches in Sichuan, Qingdao, Ningbo,Shandong established.
Team:
Wu Wenyong, director, former actuary in China Life, Global Life. He is good at operation strategy, policy design and risk management.
The management team comes from the parent company of EverPro in Taiwan and all of them are MDRT members with more than 10 years’ experience in insurance.
By the end of 2016, there are 625 brokers in EverPro recognized as MDRT members. The number of MDRT members ranks 15th globally.
Model Analysis
The primary market EverPro works on is retirement market and most of their products are underwritten by Hua Life and LJZ Finance. When they expand in China mainland, they favor developed cities and will send senior members from Taiwan to supervise the management and operations in the branches.
EverPro has a sophisticated training system for new brokers. There will be 4 sessions every week held by experts from Taiwan. Brokers can learn the skills of sales and sometimes they even bring potential customers to the session who may strike a deal after the session.
EverPro takes brokers as the most important element in their business and has a strict standard for them. All the brokers must attend a morning meeting in which brokers will simulate the sale scenes with each other and practice the tricks a good broker should use. Becoming a MDRT member is the ultimate goal EverPro sets for every broker.
EverPro provides considerate services for its customers. For example, with every policy they sell, they will attach a claim agreement which says that if a claim rejected by insurers is considered claimable by EverPro, they will help customers file a lawsuit and fight for compensations.
Data
|
Time |
First Year Premium ( million RMB) |
Number of Directors |
Income ( million RMB ) |
Registered Capital ( million RMB ) |
Number of MDRT members |
MDRT rank |
|
2012 |
10 |
274 |
6.63 |
20 |
/ |
/ |
|
2013 |
37 |
381 |
26.11 |
50 |
/ |
/ |
|
2014 |
108.5 |
676 |
99.50 |
50 |
95 |
90th |
|
2015 |
307 |
1197 |
220 |
80 |
214 |
44th |
|
2016 |
820 |
2868 |
616.74 |
80 |
625 |
15th |
|
2017E |
2200 |
7000 |
2100 |
80 |
1400 |
6th |
Data for Branches
|
Branches |
Premium income |
Number of MDRT members |
|
Beijing |
140 million RMB in 2016 |
70 |
|
Shenzhen |
41.29 million RMB in 2015 |
35 |
|
Shanghai |
100 million RMB in 2015 |
83 |
|
Jiangsu |
80 million RMB in 2015 |
53 |
|
Zhejiang |
100 million RMB in 2016 |
/ |
|
Guangdong |
84.81 million RMB in 2016 |
65 |
Case studies of ZhongAn, Answern, Huize and more can be read in the complete version.
If you are interested in the English report, if you are an English-speaking insurance practitioner who wants to learn more about Chinese Digital Insurance market or if you want to cooperate with InsurView on English contents, please send email to zarc@warpvc.com or scan the following QR codeto add contact for more information.