It is worth mentioning that although Zhonghui Mutual and Xinmei Mutual belong to the two fields of property and life insurance in terms of business, they both chose to use the Internet as a basis to focus on people in niche areas in terms of their business development ideas.

"The Internet is a new productivity tool, and the deeper essence is Internet thinking." Industry insiders told the Daily Economic News reporter that the Internet's concepts of openness, *** enjoyment, and user first are consistent with mutual insurance in the spirit of the kernel, and that this new technology can also help the mutual system to solve some of the shortcomings, and improve the governance capacity and efficiency.

Relying on the Internet to focus on niche areas

Mutual insurance, as an ancient form of insurance organization, was formed under certain specific historical conditions and has continued to upgrade and develop with the world economy. Early mutual insurance basically does not have the explicit constraints of the law, but establishes the relationship between the policyholder and the company through the charter or contract terms of the mutual insurance organization.

In the early to mid-20th century, mutual insurance stepped into the golden age, Germany, Japan, the United Kingdom and other countries have established the legal status of mutual insurance, and the number of practicing organizations continues to increase. After a century of glory, at the end of the 20th century, mutual insurance companies gradually declined and there was even a wave of non-mutualization, with many large mutual insurance companies converted to joint-stock insurance companies.

There were many reasons for this transition, such as the need for capital markets to scale up insurers in a globalized competitive environment, the emergence of new technologies, changing consumer needs, merger fever, shifts in business behavior patterns, and incentives for management.

Now that the model has been introduced to China, practitioners have made some innovations in conducting business accordingly. According to the information publicly released by the two mutual insurance societies, both of them not only focus on niche areas, but also have identified a model of relying on the Internet to conduct business.

First, focus on niche areas. Public information shows that Zhonghui Mutual's main business is credit insurance, guarantee insurance, short-term health and accident insurance; Xinmei Mutual's business scope is general insurance, including life insurance and annuity insurance, health insurance, accident insurance and so on.

The two also do set their business in areas they are familiar with, focusing on specific groups of people. For example, Zonghui Mutual, which is targeting the financing needs of micro, small and medium-sized enterprises and individual entrepreneurs in a specific industrial chain, is carrying out specific businesses such as credit guarantee insurance. For example, in response to the phenomenon that the risk of the large truck driver group is high, but there are few organizations to underwrite it, Zonghui Mutual has launched the "Chewang Large Truck Driver Accidental Injury Mutual Insurance Plan".

Secondly, they rely on the Internet to conduct business. Both have introduced big data risk control tools and big data platforms to analyze member data and risk preferences through Internet technology. Such as Xinmei mutual aid from the early stage of preparation, has chosen the asset-light model, no longer build their own IDC server room, but choose to cooperate with Ali cloud, including financial, actuarial and other almost all of the core system are deployed in the Ali financial cloud platform.

"The Internet is a new productivity tool." Xinmei mutual related person told the Daily Economic News reporter that the Internet's concepts of openness, *** enjoyment, and user-oriented are consistent with mutual insurance in terms of their spiritual kernel. In addition, modern information technology can make mutual insurance in a wider range, more convenient to discover the homogeneous risk population, reduce operating costs, improve operational efficiency, reduce moral hazard, so that the insurance product design is more personalized, pricing more scientific. At the same time, the new technology can also help the mutual system to solve some of the inherent shortcomings, improve the governance capacity, and improve operational efficiency.

Will interact positively with shareholding insurance

It is worth noting that the two mutual insurance society to carry out the business as well as its use of the Internet for actuarial, data accumulation and other means of traditional institutions in the insurance market has also long been there, but also with the high-speed development of the Internet, the traditional shareholding insurance institutions of the "touch the network

With the rapid development of the Internet, the traditional joint-stock insurance institutions "touch the network" enthusiasm is also rising.

So, with the addition of mutual insurance organizations, will it have an impact on the business of the original joint-stock insurance institutions? And what kind of development model will the two form?

From the historical longitudinal trajectory, there have been at least three obvious transformations of mutual system and shareholding system during the past hundred years, and all these processes have their own specific and profound reasons in the background of the times, which are the choices made by the insurance industry in the context of a certain social and economic development, and represent the people's understanding and cognition of the development trend of the insurance industry at that time.

From the current horizontal distribution, in some regions, mutual insurance is still the mainstream. For example, Finland's share of mutual insurance is more than 70%; Austria's share is 60%; and major countries such as Germany and France exceed 40%. In certain specific risk areas, such as agricultural insurance, mutual insurance remains absolutely dominant. In Japan 100% of agricultural insurance is carried out on a mutual basis, in France the proportion is over 70%, and in the US it is 47%.

See, mutual insurance and share insurance relationship between the two, not like Coca-Cola and Pepsi, just a simple market competition, consumer substitution relationship, they are converted to each other, mutual competition and learn from each other, objectively promote the insurance operation and product form of the continuous forward development.

"As far as our country is concerned, mutual insurance is still a new thing, and it is more useful in many areas, especially those that the services of joint-stock insurance companies have not yet reached." Zhonghui mutual related personage told the "daily economic news" reporter said, from this point of view understanding, mutual insurance is indeed a useful supplement to China's existing insurance service system. So with mutual promotion, *** with the development, mutual benefit *** win to interpret the relationship between the two, more scientific.

The CIRC has also said that, from the global insurance market development history, share-based insurance and mutual insurance is to promote each other and compete with each other in a benign interactive relationship. Mutual insurance can promote shareholding insurance to pay more attention to long-term interests, shareholding insurance can drive mutual insurance to pay more attention to operational efficiency, both **** together to promote the insurance industry to move forward. The introduction and development of mutual insurance can further promote China's insurance market and international standards, reversing the current status quo of a single form of insurance organization, and promoting the development of insurance market specialization, differentiation, characterization and diversification.