I. The current situation of Internet insurance innovation
According to the Internet Insurance Industry Development Report released by the Insurance Association of China at the beginning of 2015, for the classification of companies operating Internet insurance business, there are 44 personal insurance companies and 16 property and casualty insurance companies, which overall account for 45% of the 133 property and life insurance companies in the industry. A number of insurance companies, including PICC Property and Casualty, Taikang Life, Ping An Life, Pacific Insurance and Tianan Property and Casualty, have taken the lead in running online, and the in-depth integration of China's insurance companies with the Internet has come full circle.
First of all, at the regulatory level, last month, the long-awaited "Interim Measures for the Supervision of Internet Insurance Business" was finally released by the China Insurance Regulatory Commission (CIRC), marking the formation of the basic regulatory norms for China's Internet insurance business. With the basic idea of encouraging innovation, preventing risks and protecting consumers' rights and interests, the Measures have clarified the basic rules for the operation of Internet insurance business in terms of operating conditions, operating areas, information disclosure, supervision and management, etc.; stipulated that the insurance operation behaviors of Internet insurance business such as sales, underwriting, claim settlement, surrender, complaint handling and customer service should be managed by the insurance organization; strengthened the performance of information by the main body of the operation The content and manner of disclosure and notification obligations have been strengthened, and efforts have been made to solve the problems of non-transparency and asymmetry of information that may exist in the autonomous transactions on the Internet, so as to maximize the protection of consumers' right to know and right to choose.
Secondly, in terms of the main body of insurance, as early as 2013, PICC launched the "Palm PICC" and called it an insurance on the fingertips; last year, Tianan Property and Casualty Insurance, which has the slogan of "Claims are simple, in Tianan", launched the "Car Easy Claims" program. Last year, Tianan Property Insurance's "Car Easy Claims" APP was launched nationwide; subsequently, insurance online service platforms such as "China Taipao", "Dadi Tongbao" and "Taikang Online" were launched. Subsequently, "China Tai Insurance", "Dadi Tongbao", "Taikang Online" and other insurance online service platforms have emerged in rapid succession, which shows that service and experience have become the main direction of competition among insurance companies. Meanwhile, while based on insurance itself, various insurance companies have been extending to the periphery from the channel, respectively cooperating with P2P platforms and credit guarantee organizations to different degrees. The following is the top 15 list after the China Insurance Association evaluated 60 property and life insurance companies providing Internet services in 2014 from three aspects, including service innovation, technological innovation and channel innovation:
II. Risks Behind the Innovation of Internet Insurance
It should be said that the innovation of Internet insurance, which is based on improving the customer experience, is in the right direction. Internet insurance as an emerging field, the development space is huge, but at the same time Internet insurance innovation also brings a series of risks and problems. From the point of view of the risks that have been exposed so far, they mainly include the ectopic insurance product innovation, the sharp increase in consumer complaints, the expansion of consumer moral risk exposure, and the lack of risk assessment and control.
(I) Insurance Product Innovation Isolation
Since the establishment of Zhong'an Online, which was invested by the "Three Horses" at the end of 2013, it has led to a wave of innovation in insurance products by China's major insurance companies. Brush theft insurance, high temperature insurance, return insurance, drink hemp insurance, World Cup soccer hooligan insurance and other innovative insurance continues to emerge, life insurance companies have also launched the so-called WeChat platform based on the so-called "throw fishing" products, the name of a more than a fancy, among them, there is no lack of some types of insurance is beginning to take shape, but more for the sake of innovation and innovation. Innovation. Such as the World Cup soccer hooligan insurance from beginning to end did not sell a few copies, resulting in the original cheaper 3 yuan / copy, to the late direct price cut to 1 cent / copy, turned into a complete gimmick. What's more, the development of haze insurance, moon viewing insurance, shaking insurance, etc., seriously detached from the essence of insurance.
(ii) consumer complaints increased sharply
According to the CIRC's recently released "Circular on Insurance Consumer Complaints in the First Half of 2015", in the first half of 2015, the CIRC 12378 Complaints and Rights Protection Hotline nationally transferred manual call-in totaled 157,544, up 40.24% year-on-year. And among them, bundled sales of Internet products complaints occupy a certain proportion, the reason for this, many insurance body Internet insurance business development is rapid, but the management and service capacity is seriously inadequate, one-sided focus on sales front-end networking, back-end operations and management but still traditional thinking, front-end and back-end mismatch, easy to buy when it is difficult to return, thus leading to consumer complaints.
(C) Expansion of Consumer Moral Hazard Exposure
At present, all insurance companies have basically launched simple claims service, i.e., insurance companies implement simple claims for insurance accidents below a certain amount (ranging from 2,000 to 10,000 yuan), and consumers can transfer the information of the accident scene to the backend of insurance companies through the APP platform launched by insurance companies, or by taking photos or videos. Through the APP platform launched by the insurance company, consumers can take photos or videos and transmit the information of the accident scene to the backstage of the insurance company, and the insurance company will pay out the compensation immediately after reviewing and confirming the information, and the whole process will be completed in about 5 minutes. It should be said that this practice has greatly simplified the claim procedure, shortened the claim time and facilitated consumers. However, objectively speaking, we also have to face the basic status quo in the country, the national average moral standard needs to be improved, repair shops, 4S stores organized bulk counterfeiting, insurance fraud is endless, these will undoubtedly be the insurance company's exposure to unlimited risk expansion.
(D) risk assessment and management is not in place
Insurance is essentially a risk transfer arrangement, there should be quantifiable data to support, at present, many product innovations, the lack of basic rate setting, cost measurement and other procedures. At the same time, insurance is about the law of large numbers, if a product can not have a certain scale, the level of claims will be extremely unstable, risk management can not be talked about.
Three, the risk management of Internet insurance innovation
(a) Insurance product innovation: return to the essence
Insurance, in the legal and economic sense, is a way of risk management. Therefore, the basic principle and bottom line of insurance product innovation is that the innovative product has the possibility of risk management, that is, through the accumulation of experience and effective management measures can reduce the risk of the subject of insurance. This is the fundamental reason why force majeure such as earthquakes and hurricanes are not included in the scope of insurance in general, because so far, human beings have not been able to influence the occurrence of the above events through their own behavior. On the contrary, the current innovation of insurance products, haze insurance, moon insurance, and even high temperature insurance, basically break through this basic principle.
The reason for this situation, I think there are two main reasons, one is the insurance itself, in the current insurance market, the scale of the product homogeneity is very serious, basically the same terms, basically the same rates, basically the same service, in this case, the goal of product innovation is no longer the customer's "needs", but the customer's "needs". In this case, the goal of product innovation is no longer the customer's "needs", but the customer's "eyeballs". I remember a number of years ago, an insurance company developed a type of insurance called "drunk driving insurance", from start to finish did not sell a policy, but the company from top to bottom are very happy, because this product at that time, including the news media, regulatory authorities, peer companies and consumers of great concern, very well improve the company's visibility. Secondly, it is related to the current environment of the whole society. At present, from the collective to the individual, under the command of material and economy, every social organization and cell is trying its best to obtain as many resources as possible, while neglecting the utility and value of the resources themselves. Just as there is a saying, walking, walking, forgetting the purpose of departure.
(2) Insurance risk management: big data as a tool
1. Application of big data in rate setting. The rate setting of an insurance policy is the source of risk management for insurance companies and a very important task. The main purpose is to make the set rate correspond to the risk level of the insured, and the lower the risk, the lower the rate, so as to be as fair as possible. The key issue in determining the rate is to find out the "risk factors or variables affecting the payment of claims", in fact, the life table is a classification of age, one of the "risk factors or variables affecting the payment of claims". For example, in the pricing of auto insurance, the degree of urban traffic congestion, the driver's age, driving age, gender, the old and new degree of the car may be the "risk factors or variables affecting claims expenditure", and these factors or variables can be determined through a large number of data analysis and processing.
2. Application of big data in risk assessment. In the era of big data, risk assessment has been not only limited to the company's historical data, the industry's historical data, both the risk characteristics of the description and access to data resources are more convenient. First of all, in the field of auto insurance, which occupies more than 70% of the property insurance market, insurance companies can access three layers of data to support risk assessment. The first layer is the core layer, including company and industry data; the second layer is the tight layer, including data on car models, car zero-overall ratios, and second-hand cars; and the third layer is the peripheral mobile layer, which includes the use of on-board sensing devices to collect data on driver behaviors, and so on. At the same time, for insurance company actuaries, more and wider access to data allows them to more accurately identify the potential risks of individual objects, build more effective data models, and continually improve and increase the degree of actuarial precision to help judge and assess risks and risk reserves.
3. Application of big data in anti-claims fraud. In the case of securing data resources, complete and diverse data (data including but not limited to internal company policy and claims history, industry data, credit records, public **** social network data, criminal records, etc.), supplemented by effective algorithms and models to identify possible fraud patterns in claims, potential fraudulent behavior of the adjuster, and possible fraudulent chains should be the main direction of the future anti-claims fraud. This should be the main direction of anti-claims fraud in the future. For the Chinese insurance industry as a whole, as soon as possible to establish a set of industry-level insurance data and information platform is the key to anti-claims fraud. At present, Shanghai, Jiangsu and other provinces and cities have realized the claims information data **** enjoy, the effectiveness of anti-claims fraud in these areas significantly improved.
4. The core of the application of big data in risk management in the insurance industry - data integration. At present, the insurance company's data are industry platform of the industry data, front-end customer APP import (or on-site billing) data, the middle-end intermediary, channel, claims, call data, back-end financial collection and payment data, in addition, there are pricing system of auto parts data, personnel system of personnel data, audit and audit of the risk control system of the wind control data, etc., a wide range of varieties and complexity, so there is a need to set up a big data platform to carry out Therefore, there is an urgent need to establish a big data platform to integrate data, unify data storage and delivery standards, and connect data from different systems, and then conduct data mining according to different needs.
(3) Insurance Risk Control: Application of New Technology
In the future, the application of new technology and equipment will become the main way of risk control in the insurance industry. In the underwriting link, the data analysis technology based on big data foundation will present the data and characteristics of the insurance subject in the first three-dimensional, providing first-hand information for underwriting decision and policy, and controlling the risk from the source. In the claims process, new technologies and equipment will also be widely used. In the field of vehicle insurance, through the wireless electronic equipment loaded on the car, the use of communication networks, the realization of the vehicle, road and the driver for static and dynamic information extraction and behavioral records, so as to supervise the behavioral risk and moral risk of the driver, and to prevent before the accident, respond to the accident and deal with the accident, so as to make the management of insurance accidents passive and active, and to reduce the cost of claims. In the field of life insurance, wearable devices capable of real-time monitoring of human health are utilized to obtain and segment the human health and probability of life and death of different groups and ages, and provide customers with timely advice on diet, fitness, etc., so as to reduce the medical expenses of policyholders. In the field of home property insurance, smart home systems are used to remotely monitor homes and detect and mitigate risks in a timely manner, and when there is a gas leak or water pipe burst in the home, valves can be automatically turned off to mitigate damages, among other things.
The development of anything, there should be corresponding supporting management measures, Internet insurance innovation is no exception. For quite some time to come, the Internet insurance innovation will be on the road, based on the Internet insurance innovation risk management is also bound to follow closely.
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