The impact of Internet insurance on traditional insurance sales include:

The subversion of the concept of insurance business

The biggest subversion of the Internet on the insurance industry is the change from "customer thinking" to "user thinking". Under the traditional "customer mindset" model, insurance companies use the 4P marketing theory to sell their products to consumers, and the key

factors are product packaging, price advantage, channel strength and promotional strategies. But in the Internet era, due to the large amount of information, the flow of information quickly, can maximize the elimination of information asymmetry, information asymmetry is accelerated to break down the consumer

consumers purchasing decision-making process undergoes great changes, consumers have more right to know and the right to choose, the buyer and seller power will be shifted, prompting the industry to accelerate into the era of user sovereignty. Under the "user thinking" model, personalized

products, ultimate consumer experience, simple form, cross-border integration of resources and the analysis of big data and other capabilities, has become the key to competition.

Impact on industry sales portals

Insurance sales is the process of aggregating individuals with the same risk profile. Different ways of defining individuals have given rise to different sales channels such as marketing, direct sales and agency.

The Internet is a natural way to "connect" and "aggregate"

, which can easily overcome spatial constraints, infinitely segment the risk characteristics of the population, and make full use of the "long-tail effect" of the minority group to combine into personalized insurance products. In this context, what determines the volume of business

will be the flow of the Internet platform. The traditional advantage of relying on the number of outlets and the scale of manpower for one-to-one marketing under the traditional model will definitely be weakened and impacted to some extent due to higher costs.

Expansion of Insurance Market Boundaries

Internet insurance will expand the boundaries of insurance in three ways: First, the Internet has brought about a new economy and way of life, in which the new risks derived from new protection needs, such as online shopping return insurance, theft insurance, etc.; second, the big data

technology to enhance the industry's risk pricing and management capabilities, so as to incorporate the risks that were previously difficult to effectively manage into the scope of coverage, such as online shopping return insurance, theft insurance, etc. Secondly, big data

technology improves the industry's risk pricing and management capabilities, thus bringing risks that were previously difficult to effectively manage into the scope of coverage, such as high-temperature insurance, haze insurance, and moonrise insurance; thirdly, by leveraging the Internet's strong customer aggregation capabilities, the "long

tail effect" is brought into play, fragmenting the insurance period and premiums, so that customers who did not have the ability to take out a high amount of insurance in the past are included in the insured population, such as the one-dollar "care insurance," etc.

Changes in the industry's service requirements

Under the situation of "user sovereignty," consumers can more accurately predict the actual quality of their experience with a target product or service based on information such as user ratings, recommendations from friends and family, and expert reviews in a new information environment.

Whether we can develop more personalized and on-demand products, and whether we can build the ultimate experience that exceeds consumers' expectations, will be the key to success, and will surely prompt the insurance industry to pay more attention to the quality of its services and to the personalized needs of consumers.

Challenges to operational process innovation

With the penetration of the Internet into the entire insurance industry chain, insurance companies will continue to increase their efforts to transform the entire operational process in order to maintain their competitive advantage: First, the industry's outsourcing will accelerate the development of insurance companies to shrink the scope of their day-to-day activities, and to focus their internal

resources on the core areas of risk management, customer service, and capital utilization; second, the core business processes will be networked and self-service, which will enable them to provide more services to consumers. The level of core business process networked self-service is constantly improving, which will enhance operational efficiency while catering to changes in customers' consumption habits. Third, operating costs are under strict control, and the cost savings are transformed into product rate reductions and returned to customers, resulting in a significant reduction in the cost of fixed assets and human resources investment, and the operating cost of 10,000 yuan of standard premiums has become an important competitiveness

. >an important ability.